1. What is the Marcus High Yield Calculator?

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

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment amount ($)
• \( r \) — Annual interest rate (as decimal)
• \( t \) — Time in years
• 365 — Number of compounding periods per year

Explanation: The formula accounts for daily compounding, which means interest is calculated and added to the principal balance each day.

3. Importance of Compound Interest

Details: Compound interest allows your savings to grow exponentially over time, as you earn interest on both your initial principal and accumulated interest.

4. Using the Calculator

Tips: Enter your initial deposit amount, the current APY (e.g., 4.40%), and the number of years you plan to keep the money in the account.

5. Frequently Asked Questions (FAQ)

Q1: How often does Marcus compound interest?
A: Marcus compounds interest daily and credits it to your account monthly.

Q2: Is the APY fixed or variable?
A: The APY is variable and may change based on market conditions.

Q3: Are there any fees with Marcus accounts?
A: Marcus has no account fees or minimum balance requirements.

Q4: How does this compare to regular savings accounts?
A: High-yield accounts typically offer much higher interest rates than traditional savings accounts.

Q5: Is my money safe in a Marcus account?
A: Marcus is part of Goldman Sachs Bank USA, which is FDIC-insured up to $250,000 per depositor.