1. What is the Marcus Savings Growth Formula?

The Marcus Savings Growth Formula calculates how your money grows in a high-yield savings account with daily compounding interest. It's particularly useful for Marcus by Goldman Sachs accounts which offer 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 ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time in years

Explanation: The formula accounts for daily compounding (365 times per year), which maximizes your earnings compared to simple interest or less frequent compounding.

3. Importance of Daily Compounding

Details: Daily compounding means interest is calculated and added to your account balance every day, allowing your money to grow faster over time compared to monthly or annual compounding.

4. Using the Calculator

Tips: Enter your initial deposit (principal), the annual interest rate (APY as decimal), and the number of years you plan to save. The calculator will show your projected balance.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus APY?
A: As of 2023, Marcus offers 3.65% APY (0.0365 as decimal) for their high-yield savings account, but rates may change.

Q2: How often is interest paid?
A: Marcus pays interest monthly, but it compounds daily for maximum growth.

Q3: Is there a minimum balance required?
A: Marcus has no minimum balance requirements to earn the APY.

Q4: Are there any fees?
A: Marcus high-yield savings accounts have no monthly maintenance fees.

Q5: How does this compare to regular savings accounts?
A: High-yield accounts like Marcus typically offer 10-20x higher interest rates than traditional bank savings accounts.