1. What is the Marcus Goldman Sachs Calculator?

This calculator helps you estimate the growth of your savings in Marcus by Goldman Sachs accounts, including their high-yield savings account (3.65% APY) and certificates of deposit (3.90% APY). It uses daily compounding to project your account balance over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years

Explanation: The formula calculates how your money grows with daily compounding interest, reflecting how Marcus by Goldman Sachs actually applies interest to your account.

3. Understanding Compound Interest

Details: Marcus compounds interest daily and credits it to your account monthly. The calculator shows the power of compounding over time, especially with their competitive rates.

4. Using the Calculator

Tips: Enter your initial deposit amount, select the account type (savings or CD), and specify the time period. The calculator will show your projected balance.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between APY and APR?
A: APY (Annual Percentage Yield) includes compounding effects, while APR (Annual Percentage Rate) doesn't. Marcus advertises APY to show actual earnings.

Q2: Are Marcus rates guaranteed?
A: Savings rates may change, but CD rates are fixed for the term. This calculator uses current rates as of 2023.

Q3: Is there a minimum balance required?
A: No minimum for savings accounts. CDs require $500 minimum deposit.

Q4: Are there any fees?
A: Marcus has no monthly fees for savings accounts or CDs.

Q5: How often can I access my money?
A: Savings accounts allow up to 6 withdrawals/month. CDs have early withdrawal penalties.