1. What is the Marcus High Yield Savings Calculator?

This calculator helps you estimate the growth of your savings in a Marcus High Yield Savings account with monthly compounding interest. It uses the standard compound interest formula adjusted for monthly compounding periods.

2. How Does the Calculator Work?

The calculator uses the monthly compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time in years

Explanation: The formula accounts for monthly compounding by dividing the annual rate by 12 and multiplying the time period by 12 compounding periods per year.

3. Importance of Monthly Compounding

Details: Monthly compounding means interest is calculated and added to your principal each month, leading to faster growth compared to annual compounding. Marcus High Yield Savings accounts use this compounding method.

4. Using the Calculator

Tips: Enter your initial deposit as principal, the current APY as the annual rate (default is 3.65%), 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 APY?
A: As of 2023, the rate is 3.65% APY (0.0365 in decimal form), but check Marcus.com for current rates as they may change.

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

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

Q4: How accurate is this calculator?
A: It provides a close estimate but doesn't account for additional deposits, withdrawals, or rate changes over time.

Q5: Is the interest taxable?
A: Yes, interest earned is considered taxable income in the year it's credited to your account.