1. What is the Marcus Savings Formula?

The Marcus Sachs Savings Account uses daily compounding interest to calculate the growth of your savings. The formula accounts for compound interest earned each day at a rate of 3.65% APY (Annual Percentage Yield).

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

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

Explanation: The formula calculates how much your savings will grow with daily compounding interest, which means interest is calculated on your principal plus previously earned interest every day.

3. Importance of Daily Compounding

Details: Daily compounding allows your savings to grow faster than simple interest or less frequent compounding because you earn interest on your interest every day.

4. Using the Calculator

Tips: Enter your principal amount in dollars, time period in years, and the annual interest rate as a decimal (default is 0.0365 for 3.65% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus Sachs APY?
A: As of 2023, Marcus offers a 3.65% APY on their high-yield savings accounts, but this rate may change.

Q2: How often is interest paid?
A: Interest is compounded daily and credited to your account monthly.

Q3: Is there a minimum balance requirement?
A: Marcus Sachs has no minimum balance requirements and no monthly fees.

Q4: How does daily compounding compare to monthly?
A: Daily compounding typically yields slightly more than monthly compounding due to more frequent application of interest.

Q5: Are there any withdrawal limits?
A: Like all savings accounts, Marcus follows federal Regulation D which limits certain types of withdrawals to 6 per month.