Marcus by Goldman Sachs is an online consumer banking division of New York-based Goldman Sachs Bank USA.
Named after Marcus Goldman, one of the investment bank’s founders, Marcus offers some exciting financial products, including high yield savings accounts, portfolio management, and personal loans.
With a simple, online-only platform, and the backing of an investment banking powerhouse, Marcus is quickly gaining traction in the online banking and investing space.
Marcus by Goldman Sachs Products
Online Savings Account
Marcus brings one savings account to the table. The Marcus High-Yield Savings Account is award-winning online savings account with a current annual percentage yield (APY) of 0.50%.
There’s no monthly maintenance fee and no initial deposit or minimum balance requirements.
You can make same-day transfers from other banks of up to $100,000, and opening an account online takes just a few minutes.
The downside is that without an option for a linked checking account, making deposits into your savings is a little trickier.
To move money into the account, you can connect direct deposits or send an ACH, check, or wire transfer from your other bank.
Overall, Online Savings is a simple and effective high-interest online savings account with user-friendly tools, no monthly fees, and an interest rate far above the national average.
Certificates of Deposit (CDs)
Marcus’ High-Yield CDs are fixed-rate accounts with CD terms ranging from six months to six years.
The rates are tiered, with higher rates available the longer your commit your funds. Here’s a look at the current rates:
- 6-month term: 0.15% APY
- 9-month term: 0.65% APY
- 1 to 4-year term: 0.55% APY
- 5 to 6-year term: 0.60% APY
High-Yield CDs require a minimum balance of $500 and come with the option to set your account maturity instructions online.
Opening a CD online is easy, and with the 10-day CD Rate Guarantee, you get a small window of time to bump up your interest rate if the Fed rate increases rates right after you open your account.
Marcus offers a No-Penalty CD that comes with the ability to withdraw your full balance if you need it with no early withdrawal penalty.
You won’t have access to the funds for the first seven days after account opening, but after that, it’s yours to move around.
The trade-off here is that the APY is slightly lower than the standard High-Yield CD option, however, it’s still competitive — take a look:
- 7-month term: 0.45% APY
- 11-month term: 0.35% APY
- 13-month: 0.25% APY
Just like the High-Yield CD, you need a minimum deposit of $500 to open an account.
Goldman Sachs is one of the most well-known financial institutions in the world when it comes to investing, so it’s no surprise that Marcus comes with several options for personal investment accounts.
Marcus investment accounts allow you to customize your investment timeline and the level of risk that you want to take.
Based on your goals and strategy, the platform recommends a portfolio allocation of stocks, bonds, and ETFs.
All Marcus Invest portfolios are built and operated based on one of the firm’s three core investment strategies:
- Goldman Sachs Core is built with a diversified allocation across market-cap index-tracking ETFs (which may include U.S. and international stocks, real estate securities, and investment-grade bonds). This strategy is recommended for buy and hold investors who believe in the long-term potential of the market.
- Goldman Sachs Impact follows a similar strategy as Core, but with a specific focus on socially conscious and environmentally sustainable investments.
- Goldman Sachs Smart Beta is a portfolio that aims to outperform the market using proprietary tools, research, and analysis from the investment bank’s in-house experts. Note: this option is not available in IRA accounts.
Now that you understand how Invest works, here is a look at the different types of accounts you can choose from:
Individual Investment Account
An individual account comes with the flexibility to invest and withdraw money as needed.
Your account and allocation are tailored based on your timeline, financial goals, and risk tolerance.
Keep in mind that if you withdraw any profits from your investments, you likely have to pay capital gains taxes.
A Traditional Individual Retirement Account (IRA) allows you to contribute tax-deferred funds until you withdraw the money for retirement.
Roth IRA contributions come from after-tax income, but you won’t have to pay taxes on the funds when you withdraw for retirement.
Roths might be a good choice for investors who expect to be in a high tax bracket at retirement.
Simplified Employee Pension (SEP) IRAs are for self-employed people and have significantly higher pre-tax contribution limits than traditional or Roth IRAs.
As a lender, Marcus offers no-fee personal loans that can serve a variety of purposes.
Loan amounts range from $3,500 to $40,000 and are supposedly fee-free, meaning that you won’t pay anything to sign up, and you won’t be penalized if you make a payment late (or even if you miss one entirely).
Loan terms range from 36 to 72 months and come with APRs from 6.99% to 19.99%. Enrolling in auto-pay gets you a .25% APR reduction.
Quotes can be provided in as little as five minutes.
Here’s a closer look at the specific types of personal loans that Marcus currently offers:
- Debt Consolidation Loans
- Home Improvement Loans
- Special Occasion Loans (ie. Wedding Loans)
- Moving and Relocation Loans
- Vacation Loans
MarcusPay gives you the option for smaller, higher-interest loans on bigger purchases.
Basically, it allows you to finance purchases ranging from $750 to $10,000, with the option to make monthly payments over 12 or 18-month terms.
APRs range from 10.99% to 25.99% and MarcusPay loans are fee-free — but of course, you do have to pay back the entire balance plus interest.
Marcus By Goldman Sachs Features
You’ll have 24/7 access to your accounts with Marcus, either on your desktop or the mobile banking app. You can schedule ACH transfers at any time, monitor your balances and investments, and more.
Most of your interaction with Marcus will be with the Marcus mobile banking app, which lets you transfer money, make loan payments, and manage your account.
The Marcus app has an impressive 4.9-star rating (out of 5) in the App Store, making it among the top-ranking financial apps. The reviews are slightly lower in the Google Play Store, at 4.3 stars.
Marcus Insights is a platform that houses innovative tools and trackers that organize and optimize your entire financial picture.
You can link all of your financial accounts to the platform — not just the ones from Goldman.
Within the app, you can connect external bank accounts, credit cards, and investment accounts. Once you have all of your information in one place, intuitive tools help you understand where you stand and how to move forward.
Marcus Insights analyzes your spending habits, monitors your cash flow, and paints a clearer picture of where your money is going.
Marcus By Goldman Sachs Fees
There isn’t a whole lot to talk about when it comes to fees — Both the Marcus savings account and the CDs are truly fee-free.
That said, if you’re interested in an investment account, some fees pop up that you should know about.
- Advisory Fee: Every investment account comes with a standard advisory fee of 0.35%. The fee is based on the average daily value of your assets and is automatically taken from your account each quarter.
- ETF Fees: Depending on which ETFs you invest in, you can expect a fee based on what the ETF manager sets. This varies from fund to fund, and you can get a look at what you’ll pay for each one ahead of time.
- Ancillary Fees: Additional fees could come up for specific requests like paper statements, check copies, or account ownership transfers.
With Marcus, signing up is about as simple as it gets.
Since it’s online-only, you have to enroll on the website, and the application process for most accounts and loans can be done in minutes.
Marcus only executes a soft credit check for accounts and preliminary quotes, but a hard credit pull is required for the actual loan applications.
Once you’re signed up, you can fund your account with an ACH transfer from an external account, a check, or a wire transfer, and you’ll have full access to online banking and personal finance tools.
Marcus By Goldman Sachs Promotions
Here are the current bank promotions that Marcus is offering:
Marcus prioritizes privacy and safe online banking. Backed by a billion-dollar investment bank, Marcus and has a variety of security features and policies that keep your account and money safe.
For online banking, Marcus has multi-factor authentication, SSL encryption, firewalls, and more.
Marcus also provides plenty of information and resources to educate customers about phishing scams and identity theft.
In fact, there is even a dedicated phone line if you think you’ve been a victim of either.
As an online-only bank, Marcus’ front line of support is an exhaustive list of FAQs on the website, which cover most issues that might pop up.
There’s also dedicated phone support for each product area. When you need help from a real person, you can give them a call from Monday through Friday, 8 am to 10 pm Eastern Time, and on the weekends, from 9 am to 7 pm.
Marcus’ customer support level is pretty solid, with a 3.5-star rating (out of 5) on Trustpilot.
Pros & Cons
- Excellent interest rates
- Top-notch high-yield online savings account
- Almost no fees
- Trusted option for personal loans
- Limited account options (e.g., no checking)
- No ATM card
- No physical branches
- No mobile check deposit
Alternatives to Marcus By Goldman Sachs
While Marcus is an excellent online bank with no monthly fees, the biggest drawback is the lack of a linked checking account.
If you’re interested in online banking but need more account options, you might want to check out online-only banks like Ally or Axos, which both offer similar high-yield savings accounts along with checking and other account options.
Is Marcus by Goldman Sachs legit?
Yes, Marcus is legit. Better yet, it’s one of the best options out there when it comes to high-yield savings accounts.
It also helps to know that Marcus is backed by Goldman Sachs, which is a household name in the finance world.
Is Marcus bank safe?
Yes. Marcus savings accounts are FDIC-insured, which means that your HYSA and CD deposits are protected up to $250,000 if the bank fails.
Marcus Invest accounts are backed by Goldman Sachs, which is a member of FINRA and the SIPC, so your funds are safe there, too (other than the general risks of investing in the market).
In terms of online safety, Marcus has plenty of practices in place to keep you and your money safe.
What credit score do you need for a Marcus loan?
You need a credit score of at least 660 to qualify for most Marcus loans. This means your credit needs to be considered at least “good.”
Remember that the better your credit score, the lower interest you will pay on loans from Marcus and most other lenders.
How often does Marcus pay interest?
Interest from Marcus is compounded daily and is paid to your account monthly.
How long does it take to withdraw funds from Marcus?
If you make an ACH transfer, the funds take one to three business days to leave your Marcus account. From there, you’ll have to check with the institution receiving the funds to figure out when they’ll be available.
Is Marcus By Goldman Sachs Right For You?
Overall, Marcus by Goldman Sachs offers one of the best online banking platforms available with a clean, user-friendly interface and high-earning account options.
Add that to intuitive financial tools and expert-level investment services, and there’s more than enough here to consider Marcus as your next banking and financial partner.
The account options may be limited, but the choices you do have are well worth your time.
You won’t find more competitive rates than those in Marcus’ savings accounts and CDs, and there are also plenty of attractive options for investment portfolios and personal loans.
On the flip side, Marcus doesn’t offer enough to serve as your only banking partner. You’ll have to look elsewhere for checking accounts and credit cards.
While Marcus does have a helpful website and mobile app, if you feel the need for an in-person banking experience, you’ll have to look elsewhere.
The bottom line is that Marcus is highly recommended for HYSA accounts, CDs, and investing.
But if you’re looking for your first bank account or need the services of a traditional online bank, this type of account is probably not for you.
Either way, you now have the information and the knowledge to make the right call. Here’s to making that happen.