Marcus by Goldman Sachs Review
Marcus by Goldman Sachs may be the new kid on the block for online-only banks, but it’s earning its place with people who want top-rated customer service, high-yield savings, and a minimalistic banking experience. Its parent company, Goldman Sachs, conducted extensive research and received direct feedback from 10,000 consumers before morphing its acquired GE Capital Bank U.S. deposit platform into GS Bank in 2016, In 2017, GS Bank merged with its personal loan division, Marcus by Goldman Sachs, to offer a suite of three products: personal loans, CDs, and savings accounts. The bank’s personal loans have received a lot of positive attention this year, but we’ll be focusing more on its other financial offerings for this review.
Overall, Marcus is a good option if you’re looking solely for a place to invest your money long-term. It doesn’t offer checking accounts or any ways to access your cash on the go, but it makes up for this with high APYs across the board. However, if access to physical branches or a seamless online experience is important to you, you may want to look elsewhere — Marcus operates exclusively online, but it doesn’t offer any kind of mobile app for quick money management.
Competitive APYs on CDs and savings accounts
Little to no balance requirements
Cash and mobile deposits not accepted
No checking accounts
Debit or ATM cards not offered
Marcus by Goldman Sachs aims to “help people achieve financial well-being” and “help you make the most of your money.”
Is it true?
Yes, Marcus by Goldman Sachs makes good on its claim by delivering a no-frills banking experience focused on helping customers reach their financial goals. On top of high-yield savings accounts with a 1.70% APY, Marcus’ savings accounts come with no minimum balance requirements, service charges, or transfer fees. CDs have APYs as high as 2.20% and require only a $500 deposit. These are some of the highest rates currently on the market, and the additional perks make Marcus worth considering; for instance, CDs come with a 10-day rate guarantee, so the company automatically adjusts your APY if rates rise within 10 days of your account opening.
Marcus also joined with Clarity Money, a free money management tool and app, which offers one more way for people to improve their financial health. It’s another example of how Marcus by Goldman Sachs helps you achieve your financial objectives.
What Marcus by Goldman Sachs Offers
No minimum opening balance
No debit or ATM cards
External charges possible
Marcus by Goldman Sachs has no minimum opening balance requirements or monthly maintenance fees on its savings accounts. While its 1.70% APY is not the highest on the market, it’s certainly competitive — traditional banks like Wells Fargo often don’t even break 0.20%.
To transfer funds into your account, you can link up to four external accounts. However, making cash or mobile check deposits isn’t possible, because Marcus doesn’t offer debit or ATM cards or a mobile banking app. The lack of ATM/debit cards is understandable, given that Marcus doesn’t offer checking accounts, but it’s still nice to have access to your funds in a pinch. You can move money through wire transfers, although your external bank may charge you to accept these transfers — so Marcus may not be your best option if you need frequent access to your savings account funds.
10-day grace period
Option of high-yield or no-penalty CD account
Marcus by Goldman Sachs gives you two CD options: high-yield or no-penalty. We recommend the high-yield account; while the no-penalty option allows you to make early withdrawals, it has a lower APY and essentially functions like a savings account.
Unlike other banks, Marcus gives you 30 days to fully fund your CD account. When your CD reaches maturity, you have a 10-day grace period to switch CDs, withdraw funds, or add more money. And the biggest perk? If you fund your account within 10 days of opening it, your APY automatically adjusts to the highest rate advertised in that 10-day period. Current APYs range from 0.60% to 1.85% on high-yield CDs and 1.65% to 1.90% on no-penalty CDs.
Unfortunately, the lack of a Marcus mobile app means that you’ll have to conduct all of your financial business on the desktop site, which is an inconvenience that’s hard to overlook in this digital age — but it may not be a deal breaker if Marcus’ rates remain competitive.
- In business since: 2016 (Founded by Goldman Sachs)
- 2019 J.D. Power U.S. Online Banking Satisfaction Study score: N/A
- FDIC-insured: Yes
- States served: 50
- Number of locations: 0 (online-only)
- Pros: Competitive APY, no-fee banking
- Cons: No checking accounts available, debit/ATM cards not offered
No account fees
24/7 account access
Information accurate as of December 11, 2019.
If you’re looking for banks that grow your savings the most, Marcus by Goldman Sachs is absolutely worth a look. Its 1.70% savings account APY matches that of Ally Bank, one of Reviews.com’s top picks for the best savings accounts, and far exceeds those of traditional brick-and-mortar banks. In addition, Marcus’ CDs fetch as much as 1.85% APY — one of the highest rates we’ve seen.
Another perk of banking with Marcus? It charges zero fees for its savings accounts. It doesn’t catch you with hidden charges, either, though your external bank may charge you for things like wire transfers. The only fee associated with your CDs is an early withdrawal fee when pulling out your balance early, though a no-penalty CD circumvents this problem. Marcus is open about the fact that it makes its money from the interest on personal loans instead of charging its customers banking fees.
Little to no minimum deposits
Unlike with other banks, you can open up a savings account with Marcus with whatever amount you want, and you never have to worry about maintaining a minimum balance on it to avoid fees. To open up a high-yield or no-penalty CD, Marcus by Goldman Sachs requires $500, though this is low compared to other big banks like Discover Bank, which requires at least $2,500. With no-penalty CDs, you can also withdraw funds in as little as seven days, giving you the option of a little more flexibility than you’d get with a traditional CD. The rates of these no-penalty CDs are more in line with savings accounts, but they still may be a good option if you want to lock in a good rate.
No checking accounts available
If you’re looking to totally switch banks, Marcus likely isn’t the best option for you, as it currently only offers savings accounts and CDs. Checking accounts may be available in the future as Marcus grows, but for now, those looking to keep all of their banking under one roof will have to look elsewhere. If you’re looking for a good checking account, try starting with our top picks.
Debit/ATM cards not offered
Since Marcus by Goldman Sachs doesn’t have brick-and-mortar locations, company-branded ATMs, or partnerships with ATM networks, it’s logical for the bank not to provide debit or ATM cards. However, this, coupled with the lack of a mobile app, makes it hard to move and access your funds. Federal laws do limit savings account withdrawals to six per month, but having the ability to withdraw is nice to have in an emergency. If you need fast access to cash, it may be better to use a checking account with a different bank.
Like other online banks, Marcus doesn’t have a physical presence. If you never visit bank branches anyway, this drawback won’t impact you. But if you like to talk to tellers or settle matters with bankers in person, you’ll have to rely on the company’s customer service reps. This makes the lack of a Marcus mobile app even more noticeable — despite being an online-only bank, there’s no way to easily access your information on the go.
|Marcus by Goldman Sachs||Capital One||Ally Bank||DCU|
|No checking accounts offered||$0||$0||$0|
|1.70%||1.50%||1.50%||6.17% on first $1,000 0.25% on remaining balance 1.92% on balances over $25,000|
|1.85%||1.50%||1.50%||1.87% 1.97% for balances of $25,000 and above|
|Check rates||Check rates||Check rates||Check rates|
*Minimum required balance to waive monthly fees (if applicable)
Information accurate as of April 9, 2020.
Marcus by Goldman Sachs FAQ
To move funds in or out of your account, you can initiate a transfer between your Marcus by Goldman Sachs account and a linked, external bank. You can also move money into your account by mailing a check to Goldman Sachs or by sending a domestic wire transfer. With your savings accounts, you also have the option of setting up a direct deposit.
No. Marcus by Goldman Sachs currently doesn’t provide a way for customers to make cash deposits. All cash must be deposited into an external bank account first and then transferred to your Marcus account. The bank doesn’t offer debit or ATM cards, and it doesn’t partner with other banks or ATM networks.
Marcus by Goldman Sachs runs entirely online and has no physical branches. By cutting expensive overheads that come with brick-and-mortar locations, it can offer some of the highest APYs in the industry for savings accounts and CDs. Fee-free banking also means that you get to keep more money in your account.
There are only three types of financial products offered by Marcus by Goldman Sachs at the moment: personal loans, CDs, and savings accounts. This was a conscious decision from the bank based on extensive market research, customer feedback, and financial expertise to bring customers better products at top rates.
The Bottom Line
Marcus by Goldman Sachs gives people what they want most from a bank — savings accounts, CDs, and personal loans with no fees, accompanied by a transparent, jargonless banking experience. While some may see the omission of checking accounts, money market accounts, and debit/ATM cards as a drawback, chronic spenders wishing to build up rainy-day savings may be grateful for these restrictions. The other big downside to Marcus is that it doesn’t offer a mobile app or physical branches. If that’s something you need from a bank, our choice for the best hybrid online bank, Capital One, may suit your needs better.