1. What is the Marcus Savings Calculator?

The Marcus by Goldman Sachs Calculator helps you estimate the growth of your savings or CD account using daily compound interest. It's particularly useful for Marcus High-Yield Online Savings accounts which currently offer competitive APY rates.

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% APY)
• \( t \) — Time in years

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

3. Understanding Compound Interest

Details: Compound interest means you earn interest on both your initial deposit and the accumulated interest from previous periods. Daily compounding means interest is calculated and added to your balance every day.

4. Using the Calculator

Tips: Enter your initial deposit amount, the annual interest rate (APY) as a decimal (e.g., 0.0365 for 3.65%), and the number of years you plan to save. The calculator will show your projected balance.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus's current APY?
A: As of 2023, Marcus offers 3.65% APY for their high-yield savings account, but rates may change. Always check their current rates.

Q2: How often does Marcus compound interest?
A: Marcus compounds interest daily and credits it to your account monthly.

Q3: Are there any fees with Marcus savings accounts?
A: Marcus has no account fees, no minimum deposit requirements, and no withdrawal fees.

Q4: How accurate is this calculator?
A: This provides an estimate. Actual earnings may vary slightly due to rounding and potential rate changes.

Q5: Can I use this for CDs?
A: Yes, this works for CDs as well, assuming the CD uses daily compounding (as Marcus CDs do).