Marcus by Goldman Sachs Review: Savings Options With Competitive Rates

Here's a look at what Marcus by Goldman Sachs has to offer.

Goldman Sachs was originally founded in 1869 by Marcus Goldman. By 1890, the bank was seen as a success — turning over $30 million annually, which is the equivalent of $677 million in today’s currency. After Marcus Goldman died, his son Henry Goldman and son-in-law Samuel Sachs carried on the business. Since that time, the financial firm has grown to be one of the biggest investment banks in the U.S.

But the road hasn’t always been smooth. When the financial crisis hit in 2008, Goldman Sachs, like many other large banks, received billions in funding from the Treasury Department as part of a bailout. However, the bank repaid the funds it owed in 2009.

Traditionally, Goldman Sachs was known for catering to wealthy individuals and large enterprises. In 2016, however, the bank announced that it had diversified and that GS Bank had completed its acquisition of GE Capital Bank’s online deposit platform. Then, in 2017, another change occurred: GS Bank was rebranded as Marcus by Goldman Sachs, which is how it is known today.

According to the bank, it developed its financial offerings — which include personal loans, certificates of deposit and a high-yield savings account — based on extensive customer feedback. To that end, it prides itself on offering products that will help customers make the most of their money. Here’s a quick look at what this Marcus by Goldman Sachs review will cover:

Who Is Marcus by Goldman Sachs Best For?

Marcus by Goldman Sachs is a good option for anyone who wants a no-frills savings approach with high-yield results and the opportunity to take out a personal loan.

The bank offers a competitive annual percentage yield on its high-yield savings account, and there are no monthly maintenance fees. And, if you have at least $500 to invest, you can also open a high-yield CD. In addition, the bank offers personal loans with a variety of terms and rates for general home improvement or debt consolidation.

Here are some of the pros and cons of banking with Marcus:

Pros and Cons of Marcus by Goldman Sachs
ProsCons
Savings account and high-yield CDs with competitive ratesNo access to branches or an ATM network
No minimum deposit requirement for savings accountNo checking accounts
No hidden fees for personal loans or savings accountNo minimal add-on features, like debit or ATM cards
Personal loans of up to $40,000 for debt consolidation or home improvement projectsPossible delayed access to funds due to withdrawal procedures

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Who May Want To Skip Marcus by Goldman Sachs?

Marcus by Goldman Sachs is a good choice for those who are interested in an online banking option that offers a high-yield savings account and personal loans. But the bank may not be the right choice for customers who are looking for certain products or services that can be found at traditional banks.

Here’s a look at the types of customers the bank is best and worst for:

Who Is Marcus by Goldman Sachs Suitable For?
Best for those who:Worst for those who:
Are looking for a convenient online banking optionWant an in-person banking option
Don’t need immediate access to the money in their savings accountNeed immediate access to the funds in their savings
Are OK with having multiple online accounts with different providersAre looking for a one-stop shop for all their banking needs

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Types of Accounts Available

When you’re trying to determine whether a bank will work for your needs, knowing what it has to offer can be helpful. Here is an overview of the savings account and CD options you’ll find at Marcus by Goldman Sachs:

Marcus by Goldman Sachs Savings Options at a Glance
Savings AccountHigh-Yield CDNo-Penalty CD
Minimum Deposit$0$500$500
Monthly FeesNoneNoneNone
APY 1.70%0.60% to 2.50%1.85% to 2.00%
FeaturesA competitive APY and FDIC insuranceHigh rates and a wide variety of term lengthsNo penalty for withdrawing funds early

The bank also offers personal loans. Here’s a quick look at what you can expect:

Marcus by Goldman Sachs Personal Loans
Loan Amounts$3,500 to $40,000
APR5.99% to 28.99%, based on creditworthiness
Terms36 to 72 months
FeesNone
FeaturesThere’s no collateral required, and you can choose your own payment date

Related: Marcus by Goldman Sachs No-Penalty CD Review — Earn With the Freedom To Withdraw

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Online Savings Account

The national average rate for a savings account is currently 0.09% APY. Marcus by Goldman Sachs offers an online, high-yield savings account with a much more competitive rate. And the account is easy to set up and manage. You apply online, and there is no minimum deposit to get started. Plus, you can avoid the fees that traditional banks tend to charge.

Best of all, your savings account is insured by the Federal Deposit Insurance Corp. — just like if you opened an account in person at a local branch. Although you’ll set up the account online, help is available. To assist you, Marcus offers generous customer support from trained staff members.

However, withdrawing your money isn’t the most convenient. You’ll need to transfer a portion of your savings balance to another bank account to access the funds. Or you’ll need to request that a check be mailed to you. Bottom line: You won’t likely be able to access your money quickly in the event of an emergency.

Pros

  • Competitive APY on savings account
  • No minimum balance to get started
  • One of the highest yields available for savings accounts

Cons

  • No debit card issued
  • No access to branches or ATMs

Here’s how Marcus stacks up to other well-known banks:

How Savings Accounts at Marcus by Goldman Sachs and Other Banks Compare
BankAccountAPYMinimum Deposit
Marcus by Goldman SachsOnline Savings Account1.70%$0
Ally BankOnline Savings Account1.70%$0
BarclaysBarclays Online Savings Account1.90%$0
CIT BankPremier High Yield Savings1.55%$100
Citizens AccessOnline Savings AccountUp to 1.85%$5,000
DiscoverOnline Savings Account1.80%$0

Check Out: Best Savings Accounts of 2019

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Money Market Account

Marcus by Goldman Sachs doesn’t offer any money market accounts as part of its product offerings.

Interest Checking

One of the downsides of banking with Marcus is that the bank doesn’t offer any interest checking accounts — or any checking accounts at all.

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CDs

Marcus offers CD rates that beat the national average. The bank offers a variety of term lengths and rates on its CDs, which all require a $500 minimum deposit. In addition, the bank provides a 10-day rate guarantee. Here’s how it works: Open a CD and deposit at least $500 within the first 10 days. If the rate goes up during those 10 days after opening your account, you’ll get the higher rate automatically.

Here is a quick look at the different CD term lengths the bank offers, and the rate you can expect with each:

Marcus by Goldman Sachs High-Yield CD Rates
TermAPY
6 months0.60%
9 months0.70%
12 months2.00%
18 months2.25%
2 years2.30%
3 years2.35%
4 years2.40%
5 years2.45%
6 years2.50%

Like most banks, Marcus does charge a penalty if customers withdraw their money early from a CD. But if you think you might need to withdraw your money before the term is up, Marcus does offer No-Penalty CDs.

Here’s an overview of the bank’s No-Penalty CD terms and rates:

Marcus by Goldman Sachs No-Penalty CD Rates
TermAPY
7 months2.00%
11 months1.70%
13 months1.85%

    No-Penalty CDs require a $500 minimum deposit. And if you find you need your money before the term is up, you can withdraw the full balance as soon as seven days after funding the CD.

    Pros

    • Variety of term lengths on CDs
    • No-Penalty CDs are available for customers who need to withdraw funds early
    • Low $500 minimum deposit required to open any type of CD

    Cons

    • Higher interest rates might be found elsewhere
    • Fewer options regarding term lengths for No-Penalty CDs

    Also See: Investing In Certificates of Deposit — The Ultimate Guide

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    Individual Retirement Accounts

    Marcus doesn’t offer individual retirement accounts. You’ll need to go to another financial institution for IRA options.

    Nonbank Investment Options

    Marcus by Goldman Sachs doesn’t offer any nonbank investment options at this time.

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    Loans

    When you’re looking to fund a home improvement project or pay off high-interest credit card debt, Marcus has you covered. The bank offers unsecured personal loans between $3,500 and $40,000. Applications are approved based on your creditworthiness, and no collateral is required.

    Similar to the bank’s savings account and CDs, personal loans from Marcus are incredibly flexible and offer features such as a low annual percentage rate, no origination fees and generous repayment terms. The terms range from 36 to 72 months, and you can even specify what day your loan payment is due.

    Borrowers with the best credit will receive the most favorable loan rates. To qualify, you must be at least 18, have a valid U.S. bank account and possess a Social Security or individual taxpayer identification number.

    Pros

    • No collateral required
    • No origination fees
    • Fixed rates for lifetime of loan
    • You can choose your payment date
    • One-payment deferral option after 12 consecutive payments

    Cons

    • Borrowers with lower credit scores may not qualify
    • Lower APRs may be available elsewhere for those with good credit

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    How To Bank With Marcus by Goldman Sachs

    One of the benefits of opening an account with Marcus is how easy it is to get started. Here are the steps you’ll take to apply for a savings account, CD or personal loan.

    Savings Account or CD

    You can open a savings account or CD online at the bank’s website. Here is the information you’ll need to provide on your application:

    • Full name
    • Date of birth
    • Country of citizenship
    • Address
    • Social Security Number or individual taxpayer identification number
    • Phone number
    • Email address
    • Employment information
    • Bank accounts to link to your Marcus account

    Personal Loan

    Personal loans through Marcus are also opened online. First, you’ll choose your desired loan amount and how much you are expecting your monthly payments to be. Then, you’ll fill out all of your personal and financial information.

    Marcus will do a soft pull on your credit, so you don’t have to worry about it hurting your credit score. Once you qualify, you’ll be given a list of loan options with various terms and rates.

    After choosing the loan you want, you’ll need to verify your identity. After completing all of the requirements, you should receive the loan funds within one to four business days.

    Technology

    When you bank with Marcus by Goldman Sachs, your entire experience will happen online. You can access the login page from the Marcus homepage. You’ll have to enter your email address and password to log in to your account. However, Marcus does not offer a mobile banking app for its customers.

    Customer Service

    If you need help at any point, Marcus does provide customer support for new and existing customers. For help with a savings account or CD, you can call 855-730-7283. For help with a personal loan, call 844-627-2871 if you’re a new customer. Existing customers should call 844-627-2872.

    Bank representatives are available to assist you from 8 a.m. to 10 p.m. Eastern time Monday through Friday and from 9 a.m. to 7 p.m. Eastern time Saturday and Sunday.

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    Fees

    One of the best things about banking with Marcus by Goldman Sachs is that there are little to no fees. For example, there’s no origination fee when you take out a loan — and even the savings account doesn’t charge a minimum balance fee.

    You may be hit with a charge, however, if you withdraw money early from your high-yield CD. But if you think you might have to pull your funds before your term is up, you can easily avoid the charge by opting for a No-Penalty CD.

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    Availability of Funds

    Banking with Marcus means more complicated access to your funds, so you’ll need to plan ahead. For example, there’s no debit card or ATM card to use. You can do a wire transfer or ACH transfer, but this could take a couple of days, depending on when you do the transfer.

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    Should You Bank With Marcus by Goldman Sachs?

    If you’re still not sure if Marcus by Goldman Sachs is the right banking option for you, here’s an overview of the most significant benefits and drawbacks of doing business with the bank.

    Benefits

    Marcus by Goldman Sachs offers a high-yield savings account, CDs and personal loans. There’s no minimum balance requirement, and the savings deposits are FDIC-insured — just like a traditional bank. Plus, the APY the bank offers tends to be higher than rates on savings accounts at traditional brick-and-mortar banks. Lastly, the best thing about banking with Marcus is that there are no fees on its savings account.

    Drawbacks

    Of course, as with most financial institutions, Marcus by Goldman Sachs has room for improvement. For example, accessing your money can be time-consuming. Your withdrawal options are limited to wire transfers, ACH transfers or a request for a check. And although the bank does offer customer support over the phone, there isn’t any way for you to contact the bank in person. Overall, you’ll trade a certain amount of convenience if you opt to bank with Marcus.

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    More From GOBankingRates

    Rates are subject to change; other information on accounts is accurate as of Sept. 15, 2019. This content is not provided by Marcus by Goldman Sachs. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Marcus by Goldman Sachs.

    About the Author

    Jamie Johnson is a Kansas City-based freelance writer who specializes in finance and business. She writes about a variety of personal finance topics including student loans, credit cards, personal loans, and investing.