Marcus by Goldman Sachs Review - Everything You Need to Know

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Marcus by Goldman Sachs is an online bank offering competitive rates on savings accounts and liquid CDs. Marcus keeps things simple and inexpensive, but there’s no checking account or debit card for spending.

In reviewing Marcus by Goldman Sachs, we found that it's an excellent choice for those who want to benefit from one of the highest savings account interest rates available. It may be a good fit for those who:

• Don’t have enough savings to qualify for the highest rates at other banks
• Just want a fee-free savings account to store money
• Need to move money quickly (via wire transfer)
• Don’t need another checking account for payments

Marcus by Goldman Sachs offers the following types of accounts:

• Online Savings Account
• Several CD Options
• Personal Unsecured Loans

See below to learn more about each type of account.

The Marcus Online Savings account pays significantly more than the national average, and it competes well with other online banks.

• Earn 2.15 percent APY on account balances as low as $1.
• No minimum initial deposit or ongoing minimum balance requirement.
• Fund your account by transferring money from another account, mailing checks for deposit, or wiring funds.
• Pay no fees—unless you cash out of a CD early. Currently, Marcus doesn’t let you do anything in your savings account to generate a fee (wire transfers are free at Marcus, but your other bank may charge fees).

Access your money: To use your savings, you need to transfer funds to another bank account. Marcus does not provide an ATM card for withdrawals, and most savings accounts don’t let you make payments with checks or debit cards. Fortunately, wire transfers can potentially clear in one business day, so you don’t need to plan too far ahead when you need money. Many banks and credit unions allow you to receive wires at no cost.

Linked accounts: From within your Marcus account, you can link up to four external bank accounts. If that’s not enough, you may be able to initiate links from other bank accounts (Ally Bank allows up to 20 linked accounts).

Marcus pays competitive rates on CDs, and you have several options to choose from.

Minimum deposit: Marcus requires at least $500 to open a CD.

High-Yield CDs: Standard CDs require you to commit to leaving your savings in an account for a minimum length of time (six months to five years, for example). At Marcus, those are known as High-Yield CDs. All rates quoted below use APY, which accounts for compound interest:

• One-year CD: 2.50 percent
• Three-year CD: 2.60 percent
• Five-year CD: 2.80 percent

Penalties: Like most banks, Marcus may assess an early-withdrawal penalty on the highest-paying CDs based on the term of your CD:

• Less than 12 months: 90 days of interest
• 12 months to five years: 270 days of interest
• More than five years: 365 days of interest

No-Penalty CDs: The Marcus No-Penalty CD is a liquid CD with a term of 13 months. But you can withdraw your full balance after waiting seven days from the day you purchase your CD. That way, you keep your options open if you need money for an emergency or if you find a better rate.

• 13-month No-Penalty CD: 2.35 percent APY

Marcus offers unsecured personal loans in amounts between $3,500 and $40,000. All loans are unsecured, even though they use terms like “home improvement” loans or debt consolidation loans. With unsecured loans, lenders evaluate your application primarily on your credit scores and your income. You do not pledge collateral to secure those loans.

It’s hard to rack up fees at Marcus. Currently, early-withdrawal penalties on CDs are the primary way to pay fees. With no checking account or ATM card, you can’t overdraw your account or pay fees at foreign ATMs.

Contact Marcus: To open an account, visit Marcus.com or call 1-855-730-7283 (for savings) or 1-844-627-2871 (lending).

What you need: As with any financial institution, you need to provide personal information:

• Names of all account owners
• Social Security Number (SSN) or Tax ID Number (TIN) of all account owners
• Date of birth for all account owners
• The physical address of account owners (a mailing address is optional)
• Email address and phone numbers of account owners
• Employment information, including an income range
• Bank account information for any accounts you wish to link to Marcus

Customer service: Marcus provides phone support to new and existing customers during extended hours. Call between 8 a.m. and 10 p.m. Eastern Monday through Friday (9 a.m. to 7 p.m. on weekends). Chat support is only available to customers who are logged into their accounts.

When you deposit funds into your Marcus account, your money might not be available for withdrawals or transfers out of Marcus Bank immediately. You earn interest on money in your account, but the bank may hold funds to reduce the chances of losses. Marcus Bank’s funds availability policy describes what you can expect in most cases.

ACH Transfers: It depends on how you submit the transfer request.

• If you initiate the transfer with Marcus, the funds should be available on the third business day after Marcus receives the funds.
• If you initiate the transfer from an external bank account, the funds should be available on the next business day after Marcus receives the funds.

Wire transfers: Wiring funds into your account helps to make the funds available as quickly as possible. Funds that you wire in from an external bank should be available on the same business day that Marcus receives the transfer.

Official checks: For government checks, cashier’s checks, and other official checks, the first $5,000 of your deposit should be available on the next business day after your deposit hits. The remainder should be available unless you’re a new customer or another exception applies.

Other checks: For other types of checks, including personal checks and business checks, the first $200 should be available on the next business day after you deposit. Up to $5,000 should be available on the next business day, unless you’re a new customer or other exceptions delay availability.

Exceptions: Marcus lists the following conditions that may cause the bank to hold funds longer:

• You deposit more than $5,000 on any one day (one or more checks)
• You redeposit a check that has been returned unpaid
• They believe a check you deposit will not be paid
• Emergencies or technical problems delay the processing of your deposit

New customers: Marcus considers customers “new” for the first 30 days after opening an account. During that time, the first $200 is available on the next business day after your deposit funds (official checks may be available faster). The remainder should be available after the sixth business day, unless exceptions apply.

History: Marcus is part of Goldman Sachs Bank USA. Goldman Sachs, founded by Marcus Goldman in 1869, was historically an investment bank catering to large enterprises, wealthy individuals, foundations, and the like. Goldman Sachs began retail banking in October of 2016 with the launch of Marcus.

As a result of the 2008 financial crisis, Goldman Sachs was one of several large U.S. Banks to receive funding from the U.S. Treasury. The Treasury invested $10 billion in October of 2008. In June of 2009, Goldman announced their intention to repay, and the bank subsequently returned the funds with additional interest payments.

Security overview: Marcus uses industry-standard security measures, but data breaches are possible anywhere. The bank requires encrypted browser connections, and they provide multi-factor authentication to reduce the likelihood of hackers getting into your account.