Banking

Marcus by Goldman Sachs Bank Review

Is Marcus a good online bank?

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Justin Pritchard, CFP, is a fee-only advisor in Colorado. He covers banking and loans and has nearly two decades of experience writing about personal finance.
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Justin Pritchard
Updated June 17, 2020

Marcus by Goldman Sachs bank offers online savings accounts, certificates of deposit (CDs), and personal loans. As the name suggests, Marcus is a division of investment banking giant Goldman Sachs, formed in 1869 by Marcus Goldman. Marcus, though, came on the scene in 2016, and it makes banking with Goldman Sachs more accessible for the average person. Our in-depth Marcus review may help you decide if this online bank is right for you.  

What We Like

  • No minimum to open a savings account

  • Several CDs that let you withdraw money early

  • No monthly fees or overdraft charges

What We Don't Like

  • No checking or money market account for easy payments

  • No bricks-and-mortar banking

  • Limited product lineup

Who Is Marcus Best For?

Marcus by Goldman Sachs may appeal to anyone who is comfortable with online banking and wants a high-yield savings account or CD. It may be especially attractive to those who:

  • Just want to earn a good rate
  • Plan to open an account with a small balance
  • Do not need to make instant payments or withdrawals
  • Prefer to avoid bank fees
  • Are satisfied with their external checking account elsewhere
  • Want a CD that locks in a rate but allows a withdrawal with no penalty

What Does Marcus Offer?

Marcus keeps the banking lineup simple with just a few offerings:

  • Savings account 
  • Certificates of deposit (CDs)

Online Savings Account

The online savings account is a classic online bank account with no fees and a high annual percentage yield (APY). Most banks specify that there are no monthly fees, but Marcus explicitly says you pay no fees to Marcus for this account.

  • Pays 1.05% APY
  • No monthly fees
  • No other fees charged by Marcus
  • No minimum deposit required

Some banks limit withdrawals from your savings account to a certain amount per month. Checks payable to you from this account may not count toward your maximum, but transfers to your bank and others may. Marcus does not charge fees if you exceed the withdrawal limit, but the bank may close your account.

The rate you earn at Marcus is attractive, and you’re much better off here in terms of interest rates than at most big banks. That said, you might be able to earn a bit in interest more at a few other online banks. The best savings accounts often have interest rates higher than Marcus’ 1.30% APY. 

High-Yield CD

High-yield CDs are standard CDs that allow you to lock in a relatively high rate for a specified length of time. Marcus also offers a 10-day rate guarantee: If Marcus raises rates within 10 days after you open a CD, you automatically get the higher rate.

  • $500 minimum to open
  • Terms from six months to six years
  • Early withdrawal penalties apply
Marcus High-Yield CD Rates
Term APY
6-Month  0.60%
9-Month  0.70%
12-Month  1.10%
18-Month  1.10%
2-Year  1.10%
3-Year  1.10%
4-Year  1.10%
5-Year  1.15%
6-Year  1.15%

Like most banks, Marcus charges an early withdrawal penalty if you withdraw funds from a CD before maturity (unless you choose the No-Penalty CD). At Marcus, the early-withdrawal penalty is as follows:

  • For terms under 12 months, 90 days’ worth of interest
  • For terms between 12 months and five years, 270 days’ worth of interest
  • For terms longer than five years, 365 days’ worth of interest

No-Penalty CD

If you like to keep your options open, the No-Penalty CD from Marcus may appeal to you. You can withdraw the funds without penalty any time after seven days, but you get a guaranteed rate for the full term of the CD. 

  • $500 minimum to open
  • No early withdrawal penalty
Marcus No-Penalty CD Rates
Term APY
7-Month  1.00%

No-penalty CDs from Marcus can be useful in several situations:

  • When you’re concerned that you’ll need your money sooner than expected
  • When you expect rates to rise, and you want the ability to switch to a better CD
  • When you think rates might fall soon, but you want to keep earning at today’s rates while keeping your options open

Other Financial Products From Marcus

Marcus has a narrow range of product offerings, but that may help the bank focus on doing a good job in just those few areas.

Besides the savings account and CDs, Marcus also offers:

Marcus Customer Service

Marcus is relatively new, but early reports on customer service are encouraging: Marcus took first place in the J.D. Power 2019 Personal Loan Satisfaction Study.

Customer service by phone is available Monday through Friday from 8 a.m. to 10 p.m. ET. Weekend hours are 9 a.m. to 7 p.m.

  • Savings and CDs customer service: 1-855-730-7283
  • Personal loans customer service: 1-844-627-2871
  • MarcusPay customer service: 1-833-331-6729 

How to Bank With Marcus

To work with Marcus, visit Marcus.com or call 1-855-730-7283. As with any financial institution in the U.S., you’ll need to be prepared with some basic personal information when you open a bank account.

Bottom Line

BENEFITS

Marcus pays competitive rates on savings accounts and CDs, and charges zero bank fees. The only fee you could see, if any, is an early withdrawal penalty—but you can dodge those, as well. With no-penalty CDs, you can lock in an attractive rate and withdraw funds after just seven days if your plans change. When you need your money, you can get it quickly: Marcus provides free wire transfers out of your account, although your receiving bank might charge fees.

DRAWBACKS

There’s little to complain about if all you’re looking for is a bank that pays high rates on savings. That said, Marcus doesn’t offer much else. If you want a new bank to help with checking accounts and other needs, you’ll have to look elsewhere. Getting money out of your Marcus accounts is relatively easy, but it requires an online transfer, checks by mail, or wire transfer request.

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Article Sources

  1. Marcus by Goldman Sachs. "The High-Yield Online Savings Account You Deserve." Accessed May 13, 2020.

  2. Marcus. "Frequently Asked Questions." Accessed May 13, 2020.

  3. J.D. Power. "Alternative Lenders Satisfying Customers with Digital Platforms and Quick Approvals, But Still Not Viewed As Customer Driven, J.D. Power Finds." Accessed May 13, 2020.