Marcus is a recent addition to the offerings from 150-year-old Wall Street investment bank Goldman Sachs, having launched in 2016. Officially known as “Marcus by Goldman Sachs,” it is an online-only bank offering high-yield savings accounts, high-yield and penalty-free certificates of deposit (CDs), and no-fee personal loans. This comprehensive review of Marcus will help you decide if it is the right financial institution for you.
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Higher-than-average savings and CD rates
No monthly fees on savings accounts
No minimum deposits on savings, low minimum deposits on CDs
Fixed-rate personal loans with no fees
No checking accounts
No ATM network
No mobile check deposits
- Higher-than-average savings and CD rates – Marcus by Goldman Sachs claims its 0.80% savings account annual percentage yield (APY) is four times the national average, and it backs this claim up with an easy-to-use calculator that shows your yield over time with Marcus compared with that average. In addition, every term of Marcus CDs also boasts a higher APY than those offered at other banks.
- No monthly fees on savings accounts – Marcus does not charge a monthly maintenance fee for its savings accounts.
- No minimum deposits on savings, low minimum deposits on CDs – Customers can open a savings account with no deposit, although you must fund your account within 60 days of opening it. CDs only require a $500 minimum deposit, and you can take up to 10 days from opening the CD before depositing.
- Penalty-free CDs – In addition to its high-yield CD offerings, Marcus also has No-Penalty CDs, which allow customers to withdraw the entire balance before the maturity date without paying a penalty.
- Fixed-rate personal loans with no fees – Customers can qualify for unsecured personal loans for amounts ranging from $3,500 to $40,000 and terms ranging from 36 to 72 months. There are no sign-up fees or prepayment fees whatsoever, and the fixed annual percentage rates (APRs) range from 6.99% to 19.99%.
- No checking accounts – As Marcus does not offer any checking accounts, you will not be able to handle all of your banking needs with it. The lack of checking accounts also means you will need to connect your Marcus account to another institution for many banking options, such as deposits and withdrawals.
- No ATM network – You will not be able to easily access the money in your Marcus accounts, as there is no ATM network whatsoever. This is more than simply having to pay for an out-of-network ATM fee. If you need cash from your savings account in a hurry, there is no way to access it.
- No branches – As an online-only bank, there are no physical branches you can visit. The lack of branches further limits your ability to access your Marcus account funds.
- No mobile check deposit – Despite an easy-to-use mobile app for both iOS and Android, the only way to deposit a check into your Marcus account is to send it via U.S. mail. However, you can also set up fund transfers with a linked external bank account, make direct deposits into savings, and send a domestic wire transfer.
Who is Marcus by Goldman Sachs Best For?
Marcus by Goldman Sachs will appeal to customers who are looking for excellent rates from a trusted name in banking. It will be an especially good fit for customers who:
- Want higher-than-average savings and CD rates
- Need a savings account with no minimum deposit
- Are looking for flexibility in their CDs
- Want a savings account that is difficult to access
- Need a personal loan with no fees and a fixed rate
- Do not need a bank to handle all of their account needs
- Want to bank with an established institution with a long history
What Does Marcus by Goldman Sachs Offer?
Marcus by Goldman Sachs has a limited menu of product offerings, although it strives to make its small list of products stand out. These offerings include:
- Savings account
- Banking experience
- Customer service
The high-yield savings account is Marcus’ only traditional bank account offering. Still, no minimum deposit, no monthly maintenance fee, and a 0.80% APY mean this account is structured to give savers the biggest bang for their bucks.
|Marcus by Goldman Sachs Savings Account|
|Account Name||Min Opening Deposit||Monthly Fee||APY|
|Online Savings Account||$0||$0||0.80%|
Marcus offers two types of CD: High-Yield CD and No-Penalty CD. The High-Yield version has more term options, ranging from six months to 72 months. Both types of CD 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 gone up within that 10-day period, you’ll automatically get the highest rate available during it. In addition, High-Yield CD holders have 30 days following the day they opened the account to fully fund the CD.
If you need to access the money in your High-Yield CD prior to its maturity date, you will pay an early withdrawal penalty. The penalty is 90 days of interest for CDs with terms of 12 months or less, 270 days of interest for CDs with terms between 12 months and five years, and 365 days of interest for CDs with terms greater than five years.
No-Penalty CDs don’t have the same rates offered by the High-Yield CDs, but that is because you can withdraw the entire balance of your No-Penalty CD without giving up any of your interest, provided the CD has been fully funded for at least seven days. However, you cannot make a partial withdrawal from your No-Penalty CD.
|High-Yield CD Rates|
|No Penalty CD Rates|
Pay close attention to your CD’s maturity date. If you do not take any action to withdraw your balance within 10 days of it, Marcus will automatically renew your CD for another term.
Other Financial Products Offered by Marcus by Goldman Sachs
Other than its single high-yield savings account and the High-Yield and No Penalty CDs, the only other product Marcus offers is its no-fee personal loan. The no-fee promise includes late fees if you miss a payment, make a late payment, or underpay. Rather than charge you for any of these actions, Marcus instead simply allows your loan to accrue more interest, thereby increasing the size of your final payment.
In keeping with its apparent focus on doing a few things extremely well, Marcus’ personal loans were ranked highest in customer satisfaction by J.D. Power in 2019.
Marcus by Goldman Sachs Customer Service
With no branches, Marcus customers must access their accounts online, via the mobile app, or even over the phone. However, even without brick-and-mortar branches, Marcus offers a number of methods for getting your questions answered. To start, the FAQ section on the Marcus by Goldman Sachs website provides detailed and easy-to-understand responses to a comprehensive list of potential questions.
Customers can also access a live chat while logged onto their accounts on the Marcus website, as well as reach customer service representatives by phone seven days a week.
As an online-only bank, Marcus also has a robust mobile app that is available for both iOS and Android. The iOS version has a near-perfect 4.9-star rating on the Apple Store, while the Android version enjoys a 4.4-star rating.
How to Bank 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 do not already have an external checking account, it will be more difficult for you to access Marcus’s offerings.
Though the bank’s mobile app is otherwise robust and user-friendly, it does not allow for a mobile check deposit. If you need to make a deposit into your high-yield savings account, you will have to mail a paper check, make a transfer from a linked external bank account, set up a direct deposit, or effectuate a wire transfer.
Marcus by Goldman Sachs may not offer much in the way of banking products, but it provides maximum value to its customers within the narrow confines of the few products on offer. Thanks to highly competitive APYs on its savings and CD accounts, as well as its no-fee personal loans, customers looking for these specific products will likely be satisfied with their options.
That said, the limited number of products means that Marcus is not a bank that will work for anyone who is looking for a convenient institution to handle all of their banking needs. The fact that there is no checking account, no ATM access, and no mobile check deposit make this more of a niche banking option rather than one that will appeal to a large swath 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.
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