At A Glance
Marcus bank also well-known as Marcus by Goldman Sachs is one of the top online banks in the US. Although Marcus does not have many products to offer, it does offer some of the most competitive rates on savings accounts, personal loans and liquid CDs. Marcus keeps things simple and inexpensive for their customers, but there’s no checking account or debit card for daily access.
Mission Statement: “You Can Money”
Marcus bank has been putting customers at the center of their business, offering them value, simplicity and transparency.
Types of Accounts
Marcus by Goldman Sachs only offers three types of banking products with the intent of keeping banking with them, simple and to the point:
Online Savings Account
The Marcus Savings account offers a competitive APY with only a $1 minimum to start earning that APY on its high-yield. This is like a typical savings account, except that there are no physical branches or an ATM network to access your money.
- Earn 2.25 percent APY on account balances starting at $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 – Marcus bank offers free transfers
- No monthly maintenance fees
Keep in mind, that although transfers are free and quick, you have a cycle withdrawal limit of 6.
Marcus bank pays competitive rates on CDs, and offers various terms on CDs to best suit your needs. The minimum deposit required to open any CD is just $500. For all types of CDs, the interest can be withdrawn without penalty at any point during the term. Penalties are only applicable when withdrawing part of the principal balance. If rates change within 10 days of opening the account, Marcus bank will change your rate to ensure you are earning the best available yield tied to your CD term.
High-Yield CDs:Standard CDs require you to choose from 6-month term to 6-years. At Marcus, these are known as High-Yield CDs.
It’s important to note the penalties for early withdrawal 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 terms ranging between 7-months and 13-months at a locked in rate. This type of CD allows you to withdraw your full balance after 7 days from the day of purchase.
At Marcus bank you can qualify to get a fixed-rate personal loan up to $40,000. Goldman Sachs charges no origination fee, no prepayment penalty, no late fees.
- APR Rates vary depending on the term length 36 to 72 months: 5.99%-28.99%
- Opening an account – this is fairly easy to do, by visiting their website and providing some personal information. When applying for loans, there will be additional information and criterias.
- Linked accounts – Marcus bank allows you to link up to 4 bank accounts from other financial institutions to help make your transfers quicker and easier at no cost.
- FDIC-insured – Marcus bank accounts and products are FDIC insured.
- Financial management tools and security – through the online banking portal via their website, Marcus allows you to transfer your funds and manage your savings securely. Customers are protected through various security tools, including multi-factor authentication, secure-browser requirements, and firewalls.
- Resources – Marcus offers various money managing resources though various articles including articles on managing debt, building savings, and understanding credit. There are also calculators designed to help you understand the impact of saving and borrowing on your long-term finances.
About Marcus Bank
Goldman Sachs is known as a wealth-management giant in the United States. In 2016, it launched Marcus by Goldman Sachs as a subsidiary of The Goldman Sachs Group. Also known as Marcus bank, this financial group set out to offer online only banking services to its customers.
Marcus bank is bare-bones offering only three products designed with savings in mind. In addition to loans, Marcus offers certificates of deposit (CDs) and an online savings account at some of the highest rates in the nation.
The Goldman Sachs Group is a power-house and will continue to grow and acquire other entities which will in-turn allow Marcus bank to diversify in products and services.
The Bottom Line
Marcus bank isn’t designed to replace or offer you all your banking needs. It operates for consumers who want to earn a higher interest rate than what their current bank or credit union is offering. Therefore, it is best for savings short-term or long-term.
However, you’re trading convenience for a higher yield, thus if you need a day-to-day banking account, like a checking account, with quick and frequent access to your funds including mobile banking than Marcus bank is probably not for you.