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Marcus by Goldman Sachs Review 2019 - Savings and CDs

Marcus by Goldman Sachs Review 2019 - Savings and CDs

January 4, 2019

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Marcus by Goldman Sachs, a brand of Goldman Sachs Bank USA, is a recent entrant into the world of consumer financial services, offering attractively-priced savings accounts and no fee fixed-rate personal loans to consumers since 2016. Marcus strives for simplicity and transparency in its offerings, and its savings accounts meet this objective by being easy to sign up for and easy to use. It should be noted that Marcus does not offer checking accounts, ATMs, or an extensive branch bank network. However transferring funds to and from external linked accounts to a Marcus online savings account is easy and makes Marcus an attractive option. Marcus by Goldman Sachs now has over 350,000 customers and we expect the company to add more in the years to come. Read more below to learn about Marcus by Goldman Sachs savings options.

High Yield Savings Account

Account Features:

  • Annual Percentage Yield (APY) of 2.25% - one of the top APYs offered in the U.S. You start to earn interest on the day your deposit is made (so long as you deposit at least $1.00). Interest is compounded daily and credited to your account monthly
  • No minimum deposit to open - you can start earning interest now regardless of how much you have to save
  • No transaction fees or monthly fees
  • Accounts are FDIC insured up to $250,000 for an individually-owned account and $250,000 per owner for jointly owned accounts (the maximum amount allowed by law)

Things to Consider:

  • You are limited to six withdrawals or transfers in a monthly statement period from a Marcus Online Savings Account (standard for online savings accounts)

Signup Process:

  • To open an account, you need to provide your name, address, date of birth, and SSN in an online form
  • There are three ways to deposit funds into your Marcus account:
    • Transfer funds from a linked external bank account (recommended)
    • Send a domestic wire transfer from your other bank
    • Send a check by U.S. mail

Marcus High Yield Savings vs CIT Bank Savings Builder:

Below we compare savings account options at Marcus by Goldman Sachs with those at CIT Bank, another bank with a high interest online savings account.

Marcus High Yield Savings CIT Bank Savings Builder
APY 2.25% 2.45%
Min Deposit $0 $100
Other Requirements None Make monthly deposit of at least $100 or carry balance of >$25,000 to earn 2.45% APY

High Yield CDs

Marcus offers a range of fixed-term CDs with attractive APYs. Our view is that Marcus’ 12 month CD stands out versus other Marcus CD options because the outstanding APY (2.75%) compares favorably to the APY provided by Marcus’ longer-term CDs (those ranging from 18 months to 6 years). With a 12 month CD you benefit from a great interest rate without locking your money into an account for over one year. Below are Marcus’ current CD options:

Term APY
6 Mo 0.60%
9 Mo 0.70%
12 Mo 2.75%
18 Mo 2.65%
2 Yr 2.70%
3 Yr 2.75%
4 Yr 2.80%
5 Yr 3.10%
6 Yr 3.15%

Account Features:

  • The interest you earn on your CD is added to the principal balance of your CD. However, you have the option to withdraw the interest without penalty at any time during the life of the CD
  • You have 30 days from the day you open your CD to add additional funds to your CD
  • Accounts are FDIC insured

Things to Consider:

  • The minimum deposit to open a CD is $500
  • If you withdraw principal on your CD before it matures, you are charged an early withdrawal penalty (this is standard for CDs). The penalties are as follows:
    • For CD terms of less than 12 months, 90 days simple interest on the principal
    • For CD terms of 12 months to 5 years, 270 days simple interest
    • For CD terms of more than 5 years, 365 days simple interest

Signup Process:

  • As with Marcus’ high yield savings account, there are three ways to add money to your CD account: by transfer from a linked external bank account, via wire transfer, or via a check.

CD Rates – Marcus by Goldman Sachs vs CIT Bank:

Term Marcus APY Marcus Min Deposit CIT Bank APY CIT Bank Min Deposit
6 Mo 0.60% $500 0.72% $1,000
12 Mo 2.75% $500 2.20% $1,000
18 Mo 2.65% $500 2.50% $1,000
2 Yr 2.70% $500 1.40% $1,000
3 Yr 2.75% $500 1.30% $1,000
4 Yr 2.80% $500 1.50% $1,000
5 Yr 3.10% $500 1.70% $1,000

No-Penalty CDs

With Marcus’ No-Penalty CDs, you can withdraw your balance at any time beginning 7 days after funding your CD with no fees or penalties. This flexibility is great for savers who want to preserve the option to withdraw their funds during their CD term at no added charge. For example, if you are thinking about making a large purchase in the near future but are not sure when you will do so, a No-Penalty CD can provide piece of mind that you can withdraw your CD funds and make the purchase without incurring charges. As with the other Marcus CDs, the minimum deposit requirement for a No-Penalty CD is $500. Below are Marcus’ No Penalty CD options:

Term APY
7 Mo 2.25%
11 Mo 2.30%
13 Mo 2.35%

Our view is that the Marcus High Yield Savings Account is a better value proposition than the 7-Month No-Penalty CD, as both products offer the same interest rate but you can freely move money in and out of a High Yield Savings Account whereas you cannot with a CD. The 11-Month and 13-Month No-Penalty CD options offer slightly higher rates than the High Yield Savings Account, however, and are therefore worth consideration.

No Penalty CDs - Marcus by Goldman Sachs vs CIT Bank

Term Marcus APY Marcus Min Deposit CIT Bank APY CIT Bank Min Deposit
11 Mo 2.30% $500 2.05% $1,000
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