1. What is the Marcus HYSA Calculator?

The Marcus High-Yield Savings Account (HYSA) Calculator helps you project the growth of your savings with Marcus's competitive interest rate, using daily compounding to maximize your earnings.

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: The formula accounts for daily compounding, which means interest is calculated and added to your balance every day, leading to faster growth than simple interest or monthly compounding.

3. Importance of Daily Compounding

Details: Daily compounding means you earn interest on your interest every day, which can significantly boost your savings over time compared to less frequent compounding periods.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: How does daily compounding differ from monthly?
A: Daily compounding calculates interest every day, while monthly does it once per month. Daily compounding yields slightly higher returns.

Q3: Are there any fees with Marcus HYSA?
A: Marcus has no monthly fees or minimum balance requirements for their HYSA.

Q4: How often can I withdraw from a Marcus HYSA?
A: Federal regulations limit certain withdrawals/transfers to 6 per month.

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