1. What is the Marcus High Yield Savings Calculator?

This calculator helps you project the growth of your savings in a Marcus by Goldman Sachs High Yield Online Savings Account, which offers competitive APY with daily compounding interest.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time in years

Explanation: Interest is calculated daily and added to your balance, resulting in compound growth.

3. Understanding Daily Compounding

Details: With daily compounding, interest is calculated on your current balance each day, including previously earned interest. This accelerates growth compared to simple interest or less frequent compounding.

4. Using the Calculator

Tips: Enter your initial deposit in dollars, the number of years you plan to save, and the annual interest rate (default is 0.0365 for 3.65% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus savings APY?
A: As of 2023, Marcus offers 3.65% APY (subject to change). Check their website for current rates.

Q2: How often does Marcus pay interest?
A: Marcus pays interest monthly, but it compounds daily for maximum growth.

Q3: Is there a minimum balance requirement?
A: Marcus has no minimum balance requirements or monthly fees.

Q4: Are there withdrawal limits?
A: Federal regulations limit certain withdrawals/transfers to 6 per month.

Q5: How does this compare to regular savings accounts?
A: High-yield savings typically offer 10-20x higher interest than traditional bank savings accounts.