A competitive 0.50% APY with a $0 minimum deposit is the hallmark of Marcus by Goldman Sachs savings accounts. Since 2016, they have constantly provided among the highest APYs on the market. If you want to maximize your interest earnings, you should seriously consider opening an online savings account with Marcus.
Key Features
- Marcus by Goldman Sachs offers 0.50% APY – almost 10x the national average in the USA. No traditional bank can compete with that.
- Opening and using a Marcus by Goldman Sachs savings account is not only but also has no monthly fees.
- Creating and opening a savings account is quick and straightforward. As there is no minimum balance requirement, you can sign-up now with zero dollars.
- Opening a Marcus by Goldman Sachs savings account is free. There is also no charge for transferring cash to and from your account.
Benefits and Challenges
| Pros | Cons |
| Higher than national average savings and CD rates | Limited product offerings and features |
| No monthly maintenance fee on savings | Limited product offerings and features |
| No minimum balance requirement, you can sign-up now with zero dollars | No ATM and debit card access |
| No penalty CDs | No mobile check deposits |
| US-based live customer support | -na- |
How Does Marcus by Goldman Sachs Online Savings Work?
Marcus by Goldman Sachs high-yield savings accounts feature industry-leading high APYs. Their platform, built using cutting-edge technologies, not only helps you control your finances. Advanced security measures keep your money secure and safe.
The only variable in all Marcus accounts is the deposit you make. You can be sure of high APY and that your money is safe. For peace of mind, the FDIC provides up to $250,000 coverage. In the unlikely event that Marcus by Goldman Sachs runs out of funds, you are not going to lose your money.
There used to be a restriction to how many times you can transfer or withdraw money on savings accounts in the past. In each statement cycle, you can only make six withdrawals.
But changes in the federal law took away such restrictions. It means there are no more limitations on the number of withdrawals and transfers. Find out more about the purpose of savings account.
Savings Account Interest Earnings Sample
No doubt, the number reason why you opened (or why you should) is the high APY. To have a clearer picture of how much your savings account can earn, here is an example:
- Initial Deposit: $20,000
- Recurring Deposit Amount: $200
- Recurring Deposit Period: Monthly
- Duration of Savings Account: One year
Table 1. Comparison of Bank Rates and Interest Earned
| Bank | APY | Interest Earned |
| Marcus by Goldman Sachs | 0.50% | $106 |
| U.S. Banks National Average | 0.09% | $19 |
| Bank of America | 0.05% | $11 |
| Chase | 0.02% | $4 |
| Citibank | 0.04% | $8 |
| Wells Fargo Bank | 0.01% | $2 |
Note: Computed using Marcus High Yield Savings Calculator. The deposit rate used for the computation is as of Aug. 28, 2021.
Types of Certificates of Deposit (CD)
A CD is a form of low-risk savings tool that lets you earn higher APYs. But there is a catch. You commit your money in the bank for a specific term, such as six months or one year.
How much you earn depends on a predetermined APY at the time of application. Generally, the longer the term, the higher the APY.
Think of a CD as leaving money in your savings account to accumulate interest earnings. Marcus by Goldman Sachs is paying you back more to guarantee that you will not withdraw the money. Like savings accounts, CDs are safe, secure, and covered by the FDIC for up to $250,000.
Marcus by Goldman Sachs offers two types of CDs:
- High-Yield CDs
- No-Penalty CD
1. High-Yield CDs
Marcus by Goldman Sachs High-Yield CD accounts have terms ranging from 6 to 72 months.
One potential downside to CDs is that you are committing money long-term. At any given time, it is possible to miss out if the bank rate increases. To ease such concern, Marcus by Goldman Sachs high-yield CD accounts come with a CD rate guarantee. Within ten days of creating an account, the APY used will be whichever is the highest.
Remember that you do not need an opening balance when you open any Marcus by Goldman Sachs account. In the case of CDs, the bank requires you to deposit at least $500 within 30 days to keep it open.
If you need to withdraw money, you have that option. But Marcus by Goldman Sachs, in this case, will charge an early withdrawal penalty, as follows:
- 90 days of interest for 12 months or fewer terms
- 270 days of interest for 12 to 60 months terms
- 365 days of interest for 60 months plus terms
Comparison of High-Yield CD Rates
How does Marcus by Goldman Sachs’s high-yield CD rates stack up against some of the largest banks in the USA?
Table 2. Comparison of CD APYs
| Term | Chase | Citibank | Wells Fargo Bank | Bank of America | Marcus |
| 6 months | 0.01% | 0.05% | 0.01% | 0.03% | 0.15% |
| 9 months | 0.01% | 0.05% | 0.01% | 0.03% | 0.25% |
| 12 months | 0.01% | 0.10% | 0.01% | 0.03% | 0.55% |
| 18 months | 0.01% | 0.10% | 0.01% | 0.03% | 0.55% |
| 2 years | 0.01% | 0.10% | 0.01% | 0.03% | 0.55% |
| 3 years | 0.01% | 0.10% | 0.01% | 0.03% | 0.65% |
| 4 years | 0.01% | 0.10% | 0.01% | 0.03% | 0.65% |
| 5 years | 0.01% | 0.15% | 0.01% | 0.03% | 0.80% |
| 6 years | 0.01% | -na- | 0.01% | 0.03% | 0.80% |
Note: The national average APY for traditional banks is accurate as of Aug. 24, 2021. Marcus by Goldman Sachs CD APYs is current as of Aug. 28, 2021.
High-Yield CD Interest Earnings Sample
CDs are an excellent way to earn more while parking your extra money. To have a better idea of how much you can make, here is a sample computation.
- Deposit amount: $20,000
Table 3. Sample Computation of Earnings
| Term | National Average | Marcus |
| 6 months | $8 | $15 |
| 9 months | $12 | $37 |
| 12 months | $24 | $110 |
| 18 months | $42 | $165 |
| 2 years | $64 | $221 |
| 3 years | $120 | $393 |
| 4 years | $169 | $525 |
| 5 years | $271 | $813 |
| 6 years | $229 | $979 |
Note: Data for the USA banks sourced from Informa Financial Intelligence on Aug. 24, 2021. Marcus by Goldman Sachs CD APYs is as of Aug. 28, 2021.
2. No-Penalty CDs
No-penalty CDs are the same as high-yield CDs with one difference. You can pull out the entire balance without incurring a penalty. But the flip side is that the APY rates are a little bit lower. Aside from that, the terms offered are fewer.
No-Penalty CD Rates
While high-yield CDs have terms ranging from six months to 6 years, no-penalty CDs only have three.
Table 4. No-Penalty CD APYs
| Term | APY |
| 7 months | 0.45% |
| 11 months | 0.35% |
| 13 months | 0.25% |
Note: Marcus by Goldman Sachs no-penalty CD rates are current as of Aug. 28, 2021.
No-Penalty CD Interest Earnings Sample
Here is a sample computation to give you an idea of how much you could earn from no-penalty CDs.
- Deposit amount: $20,000
- APYs: Based on Table 4
- Starting date: Aug. 28, 2021
Table 5. Interest Earnings for No-Penalty CDs
| 7 months | 11 months | 13 months | |
| 2021 Sep 28 | $7.63 | $5.94 | $4.24 |
| 2021 Oct 28 | $15.01 | $11.68 | $8.35 |
| 2021 Nov 28 | $22.65 | $17.62 | $12.59 |
| 2021 Dec 28 | $30.04 | $23.37 | $16.70 |
| 2022 Jan 28 | $37.68 | $29.31 | $20.94 |
| 2022 Feb 28 | $45.32 | $35.26 | $25.19 |
| 2022 Mar 28 | $52.22 | $40.63 | $29.03 |
| 2022 Apr 28 | -na- | $46.58 | $33.27 |
| 2022 May 28 | -na- | $52.33 | $37.39 |
| 2022 Jun 28 | -na- | $58.28 | $41.64 |
| 2022 Jul 28 | -na- | $64.05 | $45.75 |
| 2022 Aug 28 | -na- | -na- | $50.00 |
| 2022 Sep 28 | -na- | -na- | $54.25 |
Note: The APYs used in the sample computation are as of Aug. 28, 2021, and subject to change.
How to Access Your Money
Accessing your account are through:
- Mobile banking website
- Mobile banking app for iOS and Android
- 24/7 Automated phone banking system
How Does Marcus by Goldman Sachs Compare to Other Banks?
For 2021, these are the best banks/online banks with above industry average APYs for savings accounts.
On the following table, the potential earning is based on:
- Deposit amount: $20,000
- Timespan: one year
- Compound frequency: annual
| Bank | APY | Potential Earnings |
| Ally Bank | 0.50% | $100 |
| American Express | 0.45% | $91 |
| Axos Bank | 0.61% | $123 |
| Capital One Bank | 0.40% | $80 |
| Chime | 0.50% | $100 |
| Citi Accelerate Savings | 0.50% | $100 |
| Comenity Direct | 0.55% | $111 |
| Discover Bank | 0.40% | $80 |
| Marcus by Goldman Sachs | 0.50% | $100 |
Based on the above computations, Marcus by Goldman Sachs ranks second among the most generous online banks. Only Axos has a higher potential interest earning. Marcus, meanwhile, provides the same earning as Ally, Chime, and Citi Accelerate Savings.
How to Open a Savings Account
Creating a new savings account is easy. All you have to do is find the product you are interested in on their website (www.marcus.com). In this case, navigate to savings and scroll down to the section describing how to apply.
Besides your name, birthday, address, and contact information during the application process, you would also need to provide your social security number. For depositing money electronically, you would also need your current bank’s routing number.
After opening a savings account, the next step is to link to your current bank and make a transfer.
Frequently Asked Questions (FAQ)
1. Are Marcus by Goldman Sachs Online Savings Insured?
Yes. In the USA, the FDIC provides coverage of up to $250,000.
2. Is a Marcus online savings account legit?
Yes. Marcus is a digital consumer banking service owned by Goldman Sachs – a global financial institution with $1.163 trillion total assets (2020).
3. What is The Interest Rate of a Marcus Online Savings Account ?
At present, the high-yield online savings account APY is at 0.50%. Note that it can change depending on market conditions.
4. How Do I Transfer Funds to and From a Marcus Account?
Using electronic fund transfer, you can transfer funds to/from other savings accounts from the same bank or an external bank account. Other methods include direct deposit, mailing a check, and domestic wire transfer.
5. How Do I Withdraw Money From My Marcus Online Savings Account?
ACH (automatic clearing house) transfers to a linked external account. It can work both ways – either Marcus or other bank accounts initiate the transfer. You can also use wire transfer.
Overall Impression of Marcus by Goldman Sachs Online Savings
Online banks, with limited financial products compared to traditional banks, have one thing in common. The best ones offer high APYs starting at 0.40% and upwards. Marcus by Goldman Sachs is one of them. Although they do not provide the highest of all, it is right up there.
What do we like about this online banking service of Goldman Sachs Bank USA?
- In the last five years, Marcus Savings has consistently offered among the highest APYs on the market.
- Signing up is super easy. You only need to fill up account details. There is no need to transfer money immediately as they allow a $0 minimum balance.
- There is no maintenance fee, which you can see on your monthly statement period.
To ensure a pleasant experience with online banking, you should also know the limitations. There are no physical branches, which is why brick-and-mortar banks can offer more services. Also, you cannot use a checking account.
A Marcus savings account, nonetheless, is an excellent way for you to save money. You can allocate funds for travel, household expenses or keep emergency savings.
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