1. What is the Marcus Sachs Bank Calculator?

The Marcus Sachs Bank Calculator helps you estimate the growth of your savings with Marcus by Goldman Sachs accounts, which offer competitive APY rates with daily compounding interest.

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)
• \( t \) — Time in years

Explanation: The formula calculates how your money grows with daily compounding interest, which is how Marcus by Goldman Sachs accounts accrue interest.

3. Importance of Daily Compounding

Details: Daily compounding means your interest earns interest every day, leading to faster growth compared to simple interest or less frequent compounding periods.

4. Using the Calculator

Tips: Enter your initial deposit amount in dollars, the annual interest rate (like 4.40% for Marcus accounts), and the number of years you plan to keep the money in the account.

5. Frequently Asked Questions (FAQ)

Q1: How does Marcus's APY compare to regular savings accounts?
A: Marcus by Goldman Sachs typically offers much higher APY (4.40% as of 2023) compared to traditional bank savings accounts.

Q2: Is the interest rate guaranteed?
A: No, the APY can change based on market conditions, though Marcus tends to offer competitive rates.

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

Q4: How often is interest paid?
A: Interest is compounded daily and credited to your account monthly.

Q5: Is there a maximum deposit limit?
A: While there's no official maximum, FDIC insurance covers up to $250,000 per depositor.