1. What is the Marcus High Yield Savings Calculator?

This calculator estimates the growth of your savings in a Marcus high-yield savings account using daily compounding interest. It helps you project how your money can grow over time with a competitive APY (Annual Percentage Yield).

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.044 for 4.4%)
• \( t \) — Time the money is invested for (years)

Explanation: The formula accounts for daily compounding, which means interest is calculated and added to your account balance every day.

3. Importance of Compound Interest

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

4. Using the Calculator

Tips: Enter your initial deposit in dollars, the annual interest rate as a decimal (e.g., 0.044 for 4.4%), and the number of years you plan to save. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus high-yield savings rate?
A: As of 2023, Marcus offers 4.40% APY, but rates may change. Always check their current rates before calculating.

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

Q3: Are there any fees that would affect these calculations?
A: Marcus high-yield savings accounts have no monthly fees, so the calculations assume no deductions.

Q4: How accurate are these projections?
A: Projections assume a constant interest rate and no additional deposits or withdrawals. Actual results may vary.

Q5: Can I use this for other savings accounts?
A: Yes, this calculator works for any account with daily compounding, just adjust the interest rate accordingly.