1. What is the Marcus Savings Account Calculator?

The Marcus Savings Account Calculator estimates the growth of your savings with daily compounding interest at Marcus's current APY (Annual Percentage Yield) of 3.65%. It shows how your money can grow over time with their high-yield savings account.

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 accounts for daily compounding, which means interest is calculated and added to your account balance every day, leading to faster growth than simple annual compounding.

3. Importance of Daily Compounding

Details: Daily compounding allows your interest to earn interest more frequently, significantly increasing your returns over time compared to annual or monthly compounding, especially for long-term savings.

4. Using the Calculator

Tips: Enter your initial deposit amount in dollars, the number of years you plan to save, and the annual interest rate (default is 0.0365 for Marcus's 3.65% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does Marcus compound interest?
A: Marcus compounds interest daily and credits it to your account monthly.

Q2: Is the Marcus savings rate guaranteed?
A: No, the APY can change, but this calculator uses the current rate of 3.65% as of 2023.

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

Q4: How does daily compounding compare to monthly?
A: Daily compounding yields slightly more than monthly compounding because interest earns interest more frequently.

Q5: Is this calculator accurate for other banks?
A: It works for any savings account with daily compounding, but you'd need to input that bank's specific APY.