1. What is the Marcus Savings Calculator?

The Marcus Savings Calculator estimates the growth of your savings in a Marcus High Yield Savings Account using daily compounding interest. It helps project how your money can grow over time with their competitive APY.

2. How Does the Calculator Work?

The calculator uses the daily compounding interest formula:

Where:

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

Explanation: The formula calculates how your savings grow with daily compounding interest, which means interest is calculated on your principal plus previously earned interest every day.

3. Importance of Compound Interest

Details: Compound interest allows your savings to grow exponentially over time. Marcus's high-yield savings accounts compound interest daily, which can significantly increase your earnings compared to traditional savings accounts.

4. Using the Calculator

Tips: Enter your initial deposit amount 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 Marcus's current APY?
A: As of 2023, Marcus offers 3.65% APY (0.0365 decimal) on their high-yield savings accounts, but rates may change.

Q2: How often is interest compounded?
A: Marcus compounds interest daily and credits it to your account monthly.

Q3: Are there any fees?
A: Marcus has no monthly maintenance fees or minimum deposit requirements.

Q4: How accurate is this calculator?
A: This provides a close estimate, but actual earnings may vary slightly due to rounding and potential rate changes.

Q5: Can I add monthly contributions?
A: This calculator shows growth of a single deposit. For recurring contributions, use a compound interest calculator with regular deposits.