The benefits explained
- Above Average Savings and CD Rates: Marcus by Goldman Sachs claims its 1.70% savings account annual percentage return (APY) is four times the national average, and he backs that claim up with a easy to use calculator which shows your performance over time with Marcus compared to this average. In addition, each CD Marcus term also boasts a higher APY than those offered at other banks.
- No monthly fees on savings accounts: Marcus does not charge monthly maintenance fees for his savings accounts.
- No minimum deposits on savings, low minimum deposits on CDs: Customers can open a savings account without deposit, although you must fund your account within 60 days of opening it. CDs only require a minimum deposit of $500, and you can take up to 10 days from opening the CD before depositing.
- CD without penalty: In addition to its high-yield CD offerings, Marcus also offers penalty-free CDs, which allow customers to withdraw the entire balance before the due date without paying a penalty.
- Free fixed rate personal loans: Customers can avail unsecured personal loans for amounts ranging from $3,500 to $40,000 and terms ranging from 36 to 72 months. There is no registration fee or prepayment fee, and the fixed amount annual percentage rates (APR) range from 6.99% to 19.99%.
Disadvantages Explained
- No checking account: As Marcus does not offer any checking accounts, you will not be able to manage all your banking needs with him. The absence of checking accounts also means that you will have to connect your Marcus account to another institution for many banking options, such as deposits and withdrawals.
- No ATM network: You won’t be able to easily access the money in your Marcus accounts, as there is no network of ATMs. It’s more than just having to pay out-of-network ATM fees. If you urgently need cash in your savings account, you should initiate a ACH transactions or transfer funds to another bank.
- No branch: As an online-only bank, there are no physical branches you can visit. The lack of branches further limits your ability to access funds in your Marcus account.
- No mobile check deposit: Despite an easy-to-use mobile app for iOS and Android, the only way to deposit a check into your Marcus account is to send it via US Mail. However, you can also set up fund transfers with a linked external bank account, make direct deposits into savings, and send a domestic bank transfer.
Who is Marcus at Goldman Sachs for?
Goldman Sachs’ Marcus will appeal to customers who are looking for great rates from a trusted banking name. It will be particularly suitable for customers who:
- You want savings and above-average CD rates
- Need a savings account with no minimum deposit
- are looking for flexibility in their CDs
- Want a hard-to-access savings account
- Need a personal loan at no cost and at a fixed rate
- Don’t need a bank to handle all of their account needs
- You want to do business with an established institution with a long history
What does Marcus of Goldman Sachs offer?
Marcus by Goldman Sachs has a limited menu of product offerings, though it tries to make its small product list stand out. These offers include:
Savings account
The High Yield Savings Account is Marcus’ only traditional bank account offering. Still, no minimum deposit, no monthly maintenance fees and an APY of 1.70% mean this account is structured to give savers the best value for money.
| Marcus by Goldman Sachs Savings Account | |||
|---|---|---|---|
| Account name | Minimum opening deposit | Monthly fee | APY |
| Online savings account | $0 | $0 | 1.70% |
CD
Marcus offers two types of CDs: High Yield CDs and No Penalty CDs. The high-yield version has more duration options, ranging from six months to 72 months. Both types of CDs have a minimum deposit of $500.
The High Yield CD offers a 10-day CD rate guarantee. Open a CD and deposit at least $500 within 10 days, and even if the rate has increased during that 10-day period, you will automatically get the highest rate available during that period. Additionally, high-yield CD holders have 30 days from the day they opened the account to fully fund the CD.
If you need to access the money in your high-yield CD before its maturity date, you will have to pay an early withdrawal penalty. The penalty is 90 days interest for CDs with a term of 12 months or less, 180 days interest for CDs with a term between 12 months and five years and 270 days interest for CDs with a duration of more than five years.
Penalty-free CDs don’t have the same rates as high-yield CDs, but that’s because you can withdraw the entire balance of your CD without penalty without forfeiting any of your interest, provided the CD has was fully funded. for at least seven days. However, you cannot make a partial withdrawal from your CD without penalty.
Pay particular attention to the expiration date of your CD. If you do not take action to withdraw your balance within 10 days of it, Marcus will automatically renew your CD for another period.
| High Yield CD Rates | |
|---|---|
| Terms | APY |
| 6 months | 1.50% |
| 9 months | 1.65% |
| 12 months | 2.40% |
| 18 months | 2.60% |
| 24months | 2.80% |
| 36 months | 2.90% |
| 48 months | 3.00% |
| 60 months | 3.25% |
| 6 years | 3.25% |
| Penalty-Free CD Rates | |
|---|---|
| Terms | APY |
| Seven months | 0.45% |
| 11 months | 0.35% |
| 13 months | 1.75% |
Other financial products offered by Marcus by Goldman Sachs
Besides his unique high-yield savings account and high-yield, penalty-free CDs, the only other product Marcus offers is his no-fee personal loan. The No Fee Promise includes late fees if you miss a payment, make a late payment, or underpay. Rather than charging you for any of these actions, Marcus simply allows your loan to accrue more interest, thereby increasing your final payment amount.
In keeping with its apparent goal of doing certain things very well, Marcus Personal Loans were ranked #1 in customer satisfaction by JD Power in 2019.
Goldman Sachs Marcus Customer Service
With no branches, Marcus customers must access their accounts online, through the mobile app, or even over the phone. However, even without physical branches, Marcus offers a number of methods to get your questions answered. For starters, the FAQ section of the Marcus by Goldman Sachs website provides detailed, easy-to-understand answers to a comprehensive list of potential questions.
Customers can also access live chat while logged into their accounts on the Marcus website, as well as contact customer service representatives by phone seven days a week.
As an online-only bank, Marcus also has a robust mobile app which is available for iOS and Android. The iOS version has a near-perfect 4.9-star rating on the Apple Store, while the Android version boasts a 3.7-star rating.
How to do business with Marcus by Goldman Sachs
Opening an account or applying for a loan with Marcus only takes a few minutes on its website. However, if you don’t already have an external current account, it will be more difficult for you to access Marcus’ offers.
While the bank’s mobile app is otherwise robust and user-friendly, it does not support mobile check deposit. If you need to make a deposit to your High Yield Savings Account, you will need to send a paper check, transfer from a linked external bank account, set up direct deposit, or make a wire transfer.
Verdict
Goldman Sachs’ Marcus may not offer much in the way of banking products, but it delivers maximum value to its customers within the narrow confines of the few products on offer. With very competitive APYs on its savings and CD accounts, as well as its no-fee personal loans, customers looking for these specific products are likely to be happy with their options. That said, the limited number of products means that Marcus is not a bank that will suit everyone looking for a convenient institution to handle all of their banking needs. The fact that there is no checking account, no access to an ATM, and no mobile check deposit makes it a niche banking option rather than one that will appeal to a wide range of customers. This means that Marcus’ customers are likely a self-selecting group that is specifically looking to maximize APY and minimize personal loan fees.
Methodology
Investopedia is dedicated to providing consumers with unbiased and comprehensive bank reviews. We’ve collected over 20 data points from over 80 banks, including available products, interest rates, fees and affordability, to ensure our content helps users make the right decision for their savings and banking needs.
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