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, which compounds interest daily. It uses the standard compound interest formula adapted for daily compounding.

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., 0.0365 for 3.65%)
• \( t \) — Time in years

Explanation: The formula accounts for daily compounding by dividing the annual rate by 365 and compounding over 365 days per year.

3. Importance of Daily Compounding

Details: Daily compounding means interest is calculated and added to your account balance every day, leading to slightly higher returns than monthly or annual compounding, especially over longer periods.

4. Using the Calculator

Tips: Enter your initial deposit amount, the number of years you plan to save, and the annual interest rate (default is 3.65% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus's current APY?
A: As of this calculator's creation, Marcus offers 3.65% APY, but rates may change. Check their website for current rates.

Q2: How does daily compounding differ from monthly?
A: Daily compounding calculates interest every day, while monthly does it once per month. Daily compounding yields slightly more over time.

Q3: Are there any fees with Marcus accounts?
A: Marcus High Yield Savings accounts have no monthly fees or minimum balance requirements.

Q4: How often is interest paid?
A: Marcus pays interest monthly, even though it compounds daily.

Q5: Is this calculator accurate for other banks?
A: Yes, it works for any savings account with daily compounding, just adjust the interest rate accordingly.