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Marcus by Goldman Sachs® Bank Review

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Goldman Sachs Bank USA (GS Bank) logo

When it was first launched as a subsidiary of The Goldman Sachs Group, Goldman Sachs Bank USA (now Marcus by Goldman Sachs®) made headlines for jumping into retail banking and specializing in online bank accounts.

But its low minimum-deposit requirements and high interest rates quickly positioned it as one of the best online banks amid some fierce competition. [Marcus by Goldman Sachs® is a MoneyRates.com advertiser.]

In 2015, Goldman Sachs Bank USA announced it acquired $16 billion in deposits previously owned by GE Capital Bank. As part of its strategy to diversify and branch into online deposits, GS Bank completed this acquisition in April 2016 and now offers both online savings accounts and certificates of deposit under the name "Marcus by Goldman Sachs®."

Open a high-yield online savings account with $1

Although Goldman Sachs has long been known as a wealth-management giant, customers don't need millions to open an account with Marcus by Goldman Sachs®. In fact, Marcus offers free savings accounts and does not charge transaction fees. There is no minimum-opening-deposit requirement, and you need just $1 to begin earning interest on your online savings account.

Online savings interest rate: 2.25 percent

As a bank specializing in online deposits, Marcus has the advantage of higher interest rates than its branch-based competitors. The annual percentage yield (APY) for online savings is 2.25 percent for rates as of June 20, 2019. This is higher than other major banks like Bank of America and Citibank.

Personal customer service online or over the phone

Some bank customers may prefer face-to-face interactions to do their banking, but they can still get a personal experience when contacting customer service representatives with questions about their account or balance. Customers at Marcus by Goldman Sachs® can reach a customer service representative with their account questions by messaging the Marcus website or calling the number listed on its site, www.marcus.com.

Customers banking with Marcus can withdraw money via electronic transfer or wire transfer.

[Note: There is a limit of six withdrawals or transfers per statement period for online savings accounts, including for Marcus by Goldman Sachs®.]

Certificate of deposit with a rate guarantee

For higher, guaranteed returns, look into certificates of deposit at Marcus, which have a minimum deposit of $500 and terms between 6 months to 6 years. While there are more restrictions in the form of withdrawals and penalties compared to online savings accounts, Marcus's CDs offer higher interest rates and APYs, especially when you factor in its 10-Day CD Rate Guarantee.

Available CD terms at Marcus by Goldman Sachs®

  • 6 months

  • 9 months

  • 1 year (12 months)

  • 1.5 years (18 months)

  • 2 years (24 months)

  • 3 years (36 months)

  • 4 years (48 months)

  • 5 years (60 months)

  • 6 years (72 months)

10-Day CD Rate Guarantee

Marcus by Goldman Sachs® provides a 10-day CD rate guarantee for CD account customers, giving them the highest APY offered at the bank within 10 days of opening an account. The bank requires that you make your deposit within 10 days of the account being opened to earn these high CD rates.

Be aware that there are early withdrawal penalties for withdrawing from a CD before it reaches maturity, so choose CD terms carefully.

Financial management tools and security

Marcus offers financial management tools through its online banking platform to perform basic functions such as checking account balances or transactions and transferring money.

Online banking customers are protected through various security tools, including multi-factor authentication, secure-browser requirements, and firewalls.

Why Marcus may or may not be right for you

With its online savings accounts and deposits products, Marcus is a good alternative to other big-name banks. Its free savings accounts feature a high APY and no minimum deposit requirement, which is great for customers looking to avoid bank fees and earn interest along the way.

Customers can also rest assured that Marcus is a member of the Federal Deposit Insurance Corporation (FDIC) and that their deposits have FDIC insurance coverage. Customer deposits are covered up to FDIC insurance limits of $250,000 per depositor, per bank.

While its lack of fees make the bank accessible to a large number of online banking customers, Marcus at Goldman Sachs® may not be right for you if you prefer an institution with brick-and-mortar locations. Additionally, choose a different bank if you want to open an account for a child, as owners of these deposits accounts must be 18 years or older.

Despite being brand new to the online deposits game back in 2015, GS Bank made a name for itself - namely, Marcus by Goldman Sachs® - by offering its high-yield savings and CD accounts. Marcus by Goldman Sachs® continued that success and was awarded the America's Best Rates silver medal for consistently high savings account rates, and also sixth place for offering one of the highest CD rates in the first quarter of 2019.

Editorial Note: This content is not provided by Goldman. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Goldman.

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