Marcus Goldman Sachs offers online savings accounts at competitive rates. Find out how this savings account compares to those of other online banks.
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Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA, offering high yield savings accounts as well as certificates of deposit and personal loans.
If you’re ready to open an account and start saving money, find out how Marcus by Goldman Sachs stacks up against other online banks to help you decide if it’s right for you.
The Basics of the Marcus High Yield Savings Account
There are some key features that distinguish this high yield savings account from savings accounts offered by other online financial institutions and investment banks. Here’s a quick rundown of the most important things to know about the Marcus by Goldman Sachs Savings Option:
- Get a competitive return on savings
- No monthly maintenance fees
- No minimum deposit requirement
- No minimum balance requirement
- FDIC-insured deposit coverage
- Manage your account with online and mobile banking access
MoneyRates Editor Analysis: Pros and Cons
When deciding to open an account of any kind, savings or otherwise, it’s a good idea to consider the pros and cons. The following is a breakdown of the ups and downs to note about the Marcus High Yield Savings Account.
Advantages:
- No minimum deposit to open means anyone can start saving and earning interest with this account
- Savers earn the same competitive APY on all account balances, with no minimum threshold required to earn a higher rate
- No monthly fees allow you to keep all the interest you earn each month
The inconvenients:
- You can only manage your account online or through the Marcus app; no ATM card or debit card available
Marcus High Yield Savings Account Rates
Like other online banks, Marcus by Goldman Sachs offers savers the opportunity to earn an above-average rate for their money. The current APY is well above the national average rate which hovers around 0.09%.
This rate applies to all balances; there are no tiered rates. This is the same rate offered by many competing online banks, including Capital One 360.
Compared to traditional credit unions and banks, Marcus’ High Yield Savings Account easily exceeds them. Marcus also offers an advantage over traditional banks, in that it offers savings accounts with no monthly fees or minimum balance fees.
In traditional banks, you are more likely to pay a monthly maintenance fee of $ 5-10 or be subject to fees and minimum balance requirements. The key trade-off, of course, is that traditional banks have branches, while an online bank like Marcus does not. But if you prefer digital banking over in-branch banking, that may not make much of a difference.
Marcus High Yield Savings Account Monthly Fee
Marcus by Goldman Sachs takes the same monthly fee approach as many online banks, in that you pay no monthly maintenance fees to have a savings account. Minimizing fees is always helpful, as fees can decrease the interest you earn on your savings. This is important when trying to maximize the growth of your savings.
There are also no minimum balance fees or transaction fees for transferring money between your Marcus High Yield Savings Account and accounts at other banks.
There is a limit on online transfers, but it’s very generous. You can transfer up to $ 125,000 at a time from your Marcus account to another bank without requiring special approval. If you want to transfer more than that, you will need to call customer service first.
Other savings account fees
Savings accounts are governed by Federal Regulation D, which dictates how often you can withdraw from your account per month. Currently, the limit is six withdrawals per month; anything in excess of this amount would be considered an excess withdrawal.
Some banks penalize you for making excess withdrawals above the six allowed by charging an excess withdrawal fee. Marcus of Goldman Sachs doesn’t do that. However, it reserves the right to refuse transactions that would cause you to exceed the limit or to close your account completely.
Marcus also does not charge a wire transfer fee for sending or receiving money. However, you may still be subject to charges from the bank sending money to you or receiving it from your Marcus account by wire transfer. Ultimately, Marcus by Goldman Sachs offers savers a generous fee reduction, especially compared to traditional banks.
Additional Features and Benefits of the Marcus High Yield Savings Account
The Marcus Savings Account doesn’t come with a lot of extra bells and whistles. But there are a few things to note.
The first is to be able to manage your account online and through the Marcus app. Both are free, and you can easily view your balances and schedule transfers.
Marcus allows you to make deposits by wire transfer, direct deposit, bank wire or check mail, which may take a few additional business days. However, depositing checks on mobile is not an option.
The other benefit of opening a savings account with Marcus is access to a US-based call center seven days a week. Customer service is available by phone every day, which is handy if you have questions or need help with your account. Help is available by calling 1-855-730-7283, Monday to Friday 8 a.m. to 10 p.m. ET and Saturday to Sunday 9 a.m. to 7 p.m. ET
Are there other ways to save with Goldman Sachs’ Marcus?
In addition to the high yield savings account option, you can also save with Marcus using certificates of deposit. There are two CD options to choose from:
- High Yield CD Accounts
- CD accounts without penalty
High Yield CD Accounts
Certificates of deposit can be useful for saving for short or long term goals, and Marcus by Goldman Sachs offers CDs with terms ranging from six months to six years. CD rates vary by maturity. The minimum deposit required is $ 500 and savers get a guaranteed rate of return. Marcus imposes a penalty if you withdraw money from a high yield CD before its expiration date.
CD without penalty
If you prefer some flexibility with recording, you can opt for a penalty-free CD instead. Penalty free CDs also have a minimum deposit requirement of $ 500 and you can choose from a duration of 7 months, 11 months, or 13 months. All three are competitively priced, with the 11-month CD producing the highest APY.
Borrow with Marcus
In case you need to borrow money, Marcus also offers loans. These loan options are available:
- Debt consolidation
- Consolidation of credit cards
- Home Improvements
- Unsecured personal loans
- Online loans
The minimum loan amount is $ 3,500; the maximum is $ 40,000. There are no fees associated with Marcus loans.
Currently, Marcus does not offer credit cards or checking accounts, which can be a downside if you hope to do all of your banking in one place. There is also no option to open a money market account, which may be of interest to you if you want to combine high yield savings with check issuance privileges.
How to Open a Marcus High Yield Savings Account
Opening a high yield savings account with Marcus is something you can do online, and it only takes a few minutes. The online account opening process is secure and begins with the creation of a username and password.
From there, you give Marcus the information needed to open your account, including:
- Address
- Phone number
- Date of Birth
- Social Security number
- Employment status
If you open a joint account, they must also provide their information.
The next step is to verify your identity and after that you enter the bank account number and the routing number of the account that you want to use to make your opening deposit. It’s a fairly straightforward process with no lengthy paperwork to complete.
Final Verdict: Should You Open a Marcus High Yield Savings Account?
Opening a savings account with Marcus can be a good option if you want to benefit from a competitive savings rate while avoiding monthly fees.
This account is similar to other online savings accounts in terms of the APYs you can earn, the fee structure, and the ease of setting up your account.
The option to also save with high yield, penalty-free CDs offers even more incentive to consider Marcus by Goldman Sachs as your online bank of choice. Not being able to open a checking account or make mobile check deposits is something to keep in mind, however, when deciding which bank is the right place to keep your money.
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