1. What is the Marcus High Yield Savings Calculator?

The Marcus High Yield Savings Calculator helps you estimate the growth of your savings with Marcus' high-yield savings account using daily compounding interest. It calculates how your money can grow over time with a fixed APY.

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., 0.044 for 4.4%)
• \( t \) — 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 Compound Interest

Details: Compound interest allows your savings to grow exponentially over time. The more frequently interest compounds, the faster your money grows. High-yield savings accounts like Marcus offer significantly better returns than traditional savings accounts.

4. Using the Calculator

Tips: Enter your initial deposit in dollars, the annual interest rate (APY) as a percentage (e.g., 4.40), and the time period in years. All values must be positive numbers.

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: Marcus High Yield Savings accounts have variable APYs that can change based on market conditions.

Q3: Are there any fees with Marcus accounts?
A: Marcus has no account fees, no minimum deposit requirements, and no withdrawal fees.

Q4: How does this compare to regular savings accounts?
A: High-yield savings accounts typically offer 10-20 times 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.