Marcus by Goldman Sachs Review

Marcus by Goldman Sachs offers savings accounts and CDs at high interest rates. But don't expect accounts with a lot of bells and whistles. Read on for the pros and cons.

Marcus (previously GS Bank) is the online bank offered by the investment giant, Goldman Sachs. It offers savings products with very competitive rates and no minimum deposit and no services fees.

But there are no branches, no checking, and no ATM network. All banking is done online or over the phone.

Read on to see if it's right for you.

• Services Offered
  
• Online Savings Account
  
• CDs
  
• Pros
  
• Cons
  
• How Marcus Compares

Services Offered

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Marcus by Goldman Sachs offers savings account and certificates of deposit. Here's a quick overview:

• Online Savings Account
  Earn competitive interest rates with as little as just $1 deposit. This is like a typical savings account, except that there are no physical branches or an ATM network.

• High-Yield, No-Penalty, and Rate Bump CDs
  CDs have $500 minimum opening deposit. You lock in a rate, so you know exactly how much interest you will earn. You can earn a higher APY if you can commit to tying up your money for longer.

Marcus Online Savings Account

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The online savings account offers a very high rate, though you'll have to sacrifice some conveniences. Here are some details:

• Minimum of $1 to earn the stated APY
  
• No minimum opening deposit requirement
  
• No monthly service fees
  
• No transaction or transfer fees
  
• Unlimited withdrawals and transfers
  
• Daily compounding interest
  
• FDIC insured

There is no mobile check deposit feature or ATM card. You'll need to transfer money in and out of an external account. So there may be some delay when transferring funds.

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High-Yield Savings Premier - 5.36% APY

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• No account activity or maintenance fees
• $500 minimum opening deposit
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5.36% annual percentage yield (APY) is accurate as of 1/17/2024 and subject to change at the Bank's discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Member FDIC

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CIT Bank Platinum Savings - 5.05% APY

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UFB Secure Savings - Earn up to 5.25% APY

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• Earn up to 5.25% APY*
• No monthly maintenance fees
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Certificate of Deposits

Marcus by Goldman Sachs offers three types of CDs:

• High-Yield CDs (Terms of 6 months to 6 years):
  The minimum to open is $500. But you have 30 days to fully fund your CD. You can continue to add funds into it for 30 days after account opening.

  Your rate is locked in for the entire term. If you can commit to not touching your money for a year, the 12-month CD offers one of the best rates on the market. Longer terms offer higher APYs.

  High-yield CDs come with a 10-day rate guarantee. If the rate on your selected CD goes up within the first 10 days, you'll automatically get the higher rate.

  What is the penalty for early withdrawals from Marcus CDs?
  It depends on the term of your CD. Here's how it breaks down:^[3]
  

  • Less than or equal to 1 year: 90 days of interest on the principal
    
  • More than 1 year to 5 years: 180 days of interest on the principal
    
  • More than 5 years: 270 days of interest on the principal

  12-Month High-Yield CD - Earn 4.90% APY

  Click Here to Get Deal

  $500 Minimum Balance

• No Penalty CD (Terms of 7 to 13 months):
  This CD gives you the flexibility to withdraw your full balance with no penalty (starting from 7 days after account funding). This is good if you suddenly need your money. The minimum to open is $500 (you cannot add more funds).

  The rate on this CD is actually a little bit better than the online savings rate. And the ability to withdraw gives you some peace of mind that your money isn't tied up.

  13-Month No-Penalty CD - Earn 4.70% APY

  Click Here to Get Deal

  No early withdrawal penalty

• Rate Bump CD (one fixed term of 20 months):
  This CD has the option to change to a higher rate with no change fee and no penalty. You can have multiple Rate Bump requests and the rate increase will take effect the same day (if request is received before 6PM ET).

  The minimum to open is $500. When your Rate Bump CD has an increased rate, you can add more funds for 10 calendar days, starting from the day the Rate Bump request is submitted.

  Rate Bump CD

  Click Here to Get Deal

  Term	APY
  20-month	4.40%

Your CDs have a 10-day grace period after maturity. Once your CD matures, you have 10 days to either withdraw the funds, renew the CD, or close it and open a new CD with a different term.

You can also have your CD's interest disbursed to an external account. You just have to call customer service to arrange it.

Why We Like Marcus by Goldman Sachs

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• High interest rates
  Interest rates are competitive with other online savings and CDs, and as much as 25x more than traditional brick-and-mortar banks.

• Low opening deposits
  There is no opening deposit for the Online Savings Account, and only $500 for CDs.

• No fees
  There are no monthly service fees, no transaction fees, and no transfer fees.

• FDIC insured
  If the bank goes out of business or runs out of money, the FDIC will reimburse you up to $250,000.

• Extended customer service hours
  You can reach representatives via phone and web chat 24 hours a day / 7 days a week.

• Interest calculators
  Marcus provides calculators to estimate the amount of interest you'll earn. This could be the motivating factor you need to start putting money away.

• Up to 6 beneficiaries
  You can name up to 6 pay-on-death beneficiaries per account.

Downsides

In exchange for high rates, Marcus does away with a lot of features.

• No mobile deposits
  If you want to make a deposit, you'll have to do so the old-fashioned way - via the mail. You can also deposit the money into an external account and then make a transfer online. Either way, it's extra steps.

• No checking accounts
  If you like to keep all of your accounts in one place, this could be a downside.

• No ATM card or ATM network
  There is no way to get fast access to your funds.

• No physical branches
  All business must be done online or over the phone.

How It Compares

• Ally: Ally offers a larger variety of accounts than Goldman Sachs, including a checking account. Their savings, checking, and CD accounts have no monthly fees and no minimum opening deposit. Ally also has a network of fee-free ATMs for you to access your funds.

  Ally is often a customer's favorite for their superior service and user-friendly interface and mobile app. Their customer service is available 24/7.

• Capital One: Capital One 360 offers checking, online savings, and CDs. The rates are lower than what Marcus by Goldman Sachs offers, but could be a good choice if you want all your banking in one place. We like Capital One 360's options for teen checking and kids savings.

  There are no monthly service fees and no overdraft fees.

Bottom Line

Marcus by Goldman Sachs isn't meant to replace all your banking needs. It's good as a bare-bones savings account with high rates. You can park your money there and have it grow securely.

Your best returns will be achieved with longer deposits and higher balances. When you combine that with the limited fees, it can be a winning combination for you.

Just understand that there are no convenience features, like mobile deposits and ATM network.

References