Marcus by Goldman Sachs® Review

Marcus by Goldman Sachs Marcus Online Savings Account

3.90% APY

Overview

Previously known as Goldman Sachs Bank USA, Marcus by Goldman Sachs® has savings offerings that allow your money to earn interest at competitive rates. In fact, it consistently offers some of the highest interest of any of the banks we review.

Marcus by Goldman Sachs® only offers two savings products: a standard savings account and certificates of deposit (CDs). For the CDs, Marcus offers both High-Yield CDs at nine different terms and also No-Penalty CDs.

If you’re looking for a larger selection of banking accounts, you may want to look elsewhere. Also, because Marcus has no physical locations, you’ll have to rely on the Marcus website, mobile app and phone-based customer service for access to your accounts.

But if high rates are your priority, you may find that Marcus best suits you.

Read on below to explore Goldman Sachs' many offerings.

Marcus by Goldman Sachs Interest Rate Comparison

Marcus by Goldman Sachs® Bank Overview

Goldman Sachs is one of the largest investment banks in the U.S. as well as a leading global investment firm. Offices can be found around the world in all major financial centers offering clients — private, corporate and government — a broad range of investment banking services. The firm was founded in 1869 and has its headquarters in New York City.

Goldman Sachs recently started offering a suite of online retail financial services including savings accounts under the name Goldman Sachs Bank or Goldman Sachs Bank USA. Even more recently, the company rebranded its banking arm as Marcus by Goldman Sachs®. Its offerings remained the same despite the name change. It's also important to note that Marcus is considered a brand of Goldman Sachs Bank USA. This means you will still come across the term Goldman Sachs Bank USA.

For retail banking savings, Marcus offers online accounts and certificates of deposit at competitive interest rates. Some of the interest rates that Marcus offers are among the highest across retail banks. Note that Marcus offers all of its savings products online only. The company does not operate any physical locations for savings account services. 

Save more with these rates that beat the National Average

• Savings & MMAs
• CDs

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Marcus by Goldman Sachs® Account Features 

You have two options for savings vehicles at Marcus: an online account or a certificate of deposit. The choice is yours whether you’d like to open one type of account or both, there’s no requirement either way. Each option has its own characteristics and benefits. It depends on your financial situation as to what will work best for your financial needs.

Marcus by Goldman Sachs® Online Savings Account

Savings accounts are one of the most popular ways to set aside money for the future. Whether they choose to put aside a certain amount each month for a future down payment or deposit lump sums a few times a year for their child’s future college fund, many people have at least one savings account. While interest rates for this type of account usually aren’t very high, the benefit is that your money is easy-to-access and can be withdrawn without penalties. 

With a Marcus online savings account, you can deposit, withdraw and earn interest all in the same place. Afraid you don’t have enough funds to get started? No need to worry, you can open the account with any amount of money — there’s no minimum deposit limit.

Curious what the difference is between the interest rate and the annual percentage yield (APY)? The interest rate reflects simple interest while the APY is how much you’ll actually earn in interest because it compounds. The interest you earn on your savings deposit is compounded daily, which means you earn interest on the interest you accrue. The interest you earn is then paid to your account every month. 

You can rest assured about the security of your savings, too. With Marcus bank accounts, your money is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. That means if, for some reason, the bank fails and runs out of funds, your money will be reimbursed by the FDIC.  

As with most savings accounts, you can withdraw or transfer funds six times per statement cycle. You’re limited to six transactions because the account is considered a savings account, not a checking account. Savings accounts have withdrawal limits set by the Federal Reserve.

To access your money, you can schedule an electronic transfer 24 hours a day, seven days a week through the online banking website, mobile banking app or phone-automated banking system. Looking to send a wire transfer? You can call Monday through Friday 8 a.m. to 10 p.m. and arrange a wire transfer. It may take one to three business days to process the request, and you can only use a wire transfer to send funds between accounts you own. If you’d like to deposit a check into your Goldman Sachs Bank account, you can mail it to the bank’s address for processing and deposit. 

Goldman Sachs Bank High-Yield CDs and No-Penalty CDs (Certificates of Deposit)

A certificate of deposit (CD) is another way for you to save money. With this type of savings vehicle, your money is deposited for the length of the term you choose. The longer you deposit money, the higher the interest rate (most of the time). The biggest difference between a CD and a savings account is an early withdrawal penalty for taking money out of a CD. The benefit to a CD is that you typically earn a higher percentage of interest than with a savings account. It’s also considered a stable but low-yield investment.

With CDs, you choose the length of the term and the amount of money you want to invest. The minimum deposit for a Marcus by Goldman Sachs CD is $500, and the shortest term is six months. The bank offers High-Yield CD terms up to six years. As with most CDs, the longer the term, the better the interest rate. You can also choose from three No-Penalty CD accounts. These accounts allow you to make a withdrawal of any amount starting seven days after account opening. That makes it easier for you to access your money without facing a huge penalty. 

When you choose to open a CD, Marcus guarantees your rate for 10 days. What that means is if you decide to open an account at one APY, but the APY decreases a week later, you’ll still get the higher APY as long as you make your deposit within those 10 days. You can think of it as almost a "best price guarantee." As for the monthly interest you accrue on a CD, it’s automatically added to the principal balance of the CD. However, you can choose to transfer the accrued interest to another bank account. That option is available with no associated fees.

If you're unsure of which CDs to buy into, it may be worth consulting an outside source, such as a financial advisor. Finding a qualified financial advisor doesn’t have to be hard, either. SmartAsset’s free tool matches you with financial advisors that serve your area. If you’re ready to be matched with advisors that can help you achieve your financial goals, get started now.

Where Can I Find Marcus by Goldman Sachs®?

Unchanged from its previous name of Goldman Sachs Bank USA, Marcus solely operates its retail savings services online. You can find Marcus online at www.marcus.com/us/en. There are no brick-and-mortar storefronts for savings accounts, an aspect of its retail banking. In-person offices are reserved for private wealth management or other services. Those offices can be found on the location finder on Goldman Sachs' main webpage. If you prefer to speak with a representative about your bank accounts, you can call the bank's toll free number (1-855-730-7283) between the hours of 8 a.m. and 10 p.m. Monday through Friday and 9 a.m. and 7 p.m. ET Saturday and Sunday.

What Can You Do Online With Marcus by Goldman Sachs®?

From educating yourself on product offerings, to opening an account, to making deposits and withdrawals — everything is found online with Marcus by Goldman Sachs®. The online experience is well-designed and easy-to-use, which is important because Marcus doesn’t operate any physical locations. 

In January 2020, Marcus officially entered the mobile banking sphere with the release of its mobile app. As of now, the app is only available for download on Apple devices, though an Android version of the app is expected to be released in Spring 2020. The app includes an overview of your account balances, bill pay and money transfers, along with a layout of your respective loans at Marcus. Apple users can also take advantage of Touch ID® and Face ID® through the app.

The most important account factors, such as finding and comparing current interest rates and terms for savings accounts and CDs, is simple and intuitive. Each step of the easy application process is explained with definitions for important financial terms. There’s also an extensive "Frequently Asked Questions" (FAQ) section on the website that gets into the details of each type of account. 

To open an account, the entire process is completed online, which is convenient for those not wanting to leave their couch. As long as you have the required information, you can set up the account without having to call or speak to someone in person. Once you open an account, you’ll be able to register for online banking where you can manage transactions such as deposits and transfers, and monitor your savings. 

How Do I Access My Money?

You can withdraw or transfer funds from a savings account up to six times a month. If you want to access your money, you can log on to your account any day of the week at any time and schedule an electronic transfer to another bank account. You also have the option to call and use the automated banking system 24-hours a day, seven days a week. 

Wire transfers operate a little differently. You’ll have to call between 8 a.m. and 10 p.m. Monday through Friday or 9 a.m. to 7 p.m. Saturday and Sunday to set one up. It can take one to three business days to process the request. Additionally, you can only use a wire transfer to send funds between accounts you own, no outside accounts. And if you have a check to deposit, you can mail it to the Goldman Sachs Bank USA address for processing.

When you want to access a CD, you can log on to your online banking account and check the maturity date. If you want to withdraw your funds before the term is up, you’ll have to call the bank to set it up. Choosing to withdraw money early does come with penalty fees, so it’s important to remember that when you’re initially deciding between term lengths for your CD. 

How Can I Save More Money with a Marcus by Goldman Sachs® Bank Account?

Compared to some of the largest banks in the U.S., like Bank of America and Wells Fargo, Marcus offers over a full percentage point more in interest. For example, take an individual who has $5,500 put away for a down payment on a future home. If she keeps the money in her current bank’s savings account at 0.02%, after one year she earns just $1.10 total interest. If she switched to a Goldman Sachs Bank savings account at 3.90% APY, she’d earn over $714.50. And that’s assuming she doesn’t add any money to the account, just the initial deposit of $5,500. Naturally, the interest earned would be higher if more deposits are made to the account over that year.

What’s the Process for Opening an Account With Marcus by Goldman Sachs®?

It’s very simple to open an account with Marcus. Once you navigate to the site, you can click the product you’re interested in (savings or CD) and scroll or click to the section that describes “how to apply.” 

Marcus lists what documents and information you need for the application, as well as what steps are needed to get started. Some of those items include: your Social Security Number, date of birth, email address and street address. If you plan to make your deposits electronically, you’ll need your current bank’s information such as bank account and routing number. 

When you’re ready to start the online application, click any of the buttons that say “open an account” or “open now.” Once you fill out the necessary information and select which savings products you desire, you’ll review, sign and submit the application electronically. Next, you’ll fund the account or CDs with an electronic transfer from an existing bank account, or set up a wire transfer. After that, you’ll be eligible to register for online banking. With Marcus online banking, you can manage your account, request electronic transfers and check your CD maturity dates.  

What’s the Catch? 

This goes for most savings accounts, but the interest rate you start with isn’t a locked down percentage. It’s subject to change. So while it might be 3.90% APY at the moment, the rate may go down or up throughout the duration of your account. 

As for CD interest rate, the rate and term you sign up for stays the same for the duration of the term. However, if you want to withdraw your funds before the term is up, you’ll pay penalty fees. It’s something to consider when you’re deciding between term lengths. If you foresee needing the money sooner than the term length, it may be better to put the money into a savings account or choose a shorter CD term length. 

The other potential downside for some customers is that Marcus by Goldman Sachs® only has two offerings at the moment: online savings and CDs. If you like using the same bank for checking and other retail banking, this may not be the company for you. 

Lastly, if you value banking in person, you’re out of luck with Marcus. The bank is only available through its online and mobile platforms, meaning there are no physical branches that you can visit.

Bottom Line

A Marcus savings account could help you earn a decent amount of interest on your savings, but it isn’t a suitable replacement for your current retail bank. With no retail locations, ATMs or checking accounts, there is no way you could switch over solely to Marcus even if you wished to. 

The best use of its offerings is as an additional account for long-term liquid (easily accessible as compared to a retirement account) savings. Current rate offers are higher than competitors, and you won’t be charged for opening an account. Plus, there’s no minimum deposit for a savings account. 

The only hurdle to overcome is adding another bank to your portfolio if you’re not already a customer. While that can seem like a hassle, it’s actually a very streamlined process that you can complete online. As long as you gather the necessary documents and information, you can open an account fairly quickly. 

Ultimately, it’s up to you and your particular financial situation. But if you want to save money and earn interest in a much less risky way than stocks or other investments, Marcus by Goldman Sachs® offers some of the highest rates you’ll find across the industry.