1. What is the Marcus Savings Calculator?

The Marcus by Goldman Sachs Savings Calculator helps you estimate the growth of your savings in a high-yield savings account with daily compounding interest. It uses the standard compound interest formula with daily compounding to project your savings growth.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time in years
• 365 — Number of compounding periods per year (daily)

Explanation: The formula accounts for daily compounding, which means interest is calculated on your balance every day and added to your principal, resulting in exponential growth over time.

3. Understanding Daily Compounding

Details: Daily compounding means your interest earns interest every day. Marcus Goldman Sachs savings accounts compound interest daily and credit it to your account monthly. This calculator shows the power of compounding over time.

4. Using the Calculator

Tips: Enter your principal amount in dollars, the time period in years, and the APY as a decimal (e.g., 3.65% = 0.0365). The calculator will show your final balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus Goldman Sachs' current APY?
A: As of [current date], Marcus offers 3.65% APY (4.40% for 6-month CDs). Rates change frequently, so check their website for current rates.

Q2: How often is interest paid?
A: Marcus pays interest monthly, though it compounds daily for more accurate growth.

Q3: Are there any fees?
A: Marcus savings accounts have no monthly fees or minimum balance requirements.

Q4: How does this compare to regular savings accounts?
A: Marcus' APY is typically much higher than traditional banks (often 10x higher or more).

Q5: Is my money safe with Marcus?
A: Yes, deposits are FDIC insured up to $250,000 per depositor.