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Marcus by Goldman Sachs Bank Review: Savings and CDs

Banking, Banks & Credit Unions, CDs, Savings Accounts
GS Bank Review: Savings and CDs
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Marcus by Goldman Sachs
NerdWallet’s rating: 4.0 / 5.0


Goldman Sachs Bank USA

at Goldman Sachs Bank USA,

Member, FDIC

Marcus by Goldman Sachs is one of the newest online-only banks. It comes with no branch offices, checking accounts or ATMs, but if you’re looking for competitive savings and CD rates, this bank is one to check out.

» If you need checking, take a look at NerdWallet’s best checking accounts

Our Ratings
Checking accountsNone
Savings accounts
Certificates of deposit (CDs)
Bank experience
Overdraft feesNone
Overall

The bottom line

  • Marcus by Goldman Sachs is best for setting aside cash to earn top interest
  • There’s no checking account, ATM network or mobile app
  • You need an external account for transferring money, so expect delays when making any transaction

Here are more details about the bank’s savings account, CDs and customer experience.

Marcus by Goldman Sachs savings


5.0 / 5.0
The bank, created after Goldman Sachs bought General Electric Co.’s GE Capital Bank in 2015, gets top marks as a spot to park your money at a high savings rate. The downside? Transferring money into or out of your account can take a few days. That’s because it doesn’t offer a way to withdraw cash or deposit checks via an ATM or a mobile app. Having an external bank account, such as a checking, savings or money market account elsewhere, is the main way to move money into and out of a Marcus account, but you can also set up direct deposits.

There are no fees for its savings account. But your other bank could charge you when you transfer money via an Automated Clearing House (ACH) or wire transfer.

ProsCons
  • 1.70% annual percentage yield for all balances
  • No minimum deposit to open account
  • $1 minimum balance
  • No branch or ATM network for in-person banking
  • No mobile app for quick access
  • No savings goal-setting feature
  • If you're not doing an ACH or wire transfer, regular mail is your only other choice to make deposits, such as sending checks by mail

» Pair it with checking: The Cash Management account, technically a brokerage account from Fidelity, is a strong option

How marcus compares to other savings accounts












APY

1.70%





Monthly fees

$0





Bonus Features

Excellent CD options



APY

1.65%





Monthly fees

$0





Bonus Features

Large ATM network



APY

1.60%





Monthly fees

$0





Bonus Features

24/7 customer service



See more high-yield savings accounts

Marcus by Goldman Sachs CDs


5.0 / 5.0

Marcus CD rates are among the best. Using one of the bank’s CDs is a better option than its savings account for longer-term goals. You can choose a term from six months to six years and get a solid return. A few other banks may have higher CD rates, but Goldman Sachs’ rates are highly competitive.

ProsCons
  • High-yield rates: 2.20% APY for one-year CD, 2.35% APY for three-year CD, 2.80% APY for five-year CD
  • Low minimum deposit of $500
  • Its CD rate guarantee lets you receive the highest rate offered within 10 days of opening
  • Early withdrawal penalty applies
  • CD renews automatically if no change is made during 10-day grace period after its term expires

» Find more high yields on our list of best CD rates for the month

Bank experience


2.5 / 5.0
Since there’s no mobile app or branch network, your main way to interact with the bank and your accounts is online and by phone. For questions, there’s a comprehensive FAQs section on the website, and you can call customer support on weekdays or submit a message via a form online.

Boosts savings but lacks convenience

Goldman Sachs Bank USA

at Goldman Sachs Bank USA,

Member, FDIC

You don’t have to be on Wall Street to get good returns on your savings at Marcus by Goldman Sachs, but there are no checking accounts and other features that some other online banks have, including a mobile app and a free ATM network. If you’re OK with stashing away cash for a while, this bank is a good choice. You don’t need to worry about fees or high balance requirements, so it’s easy to join the nearly 150-year-old investment firm’s first public bank.

Updated Dec. 11, 2017.

Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.


Ratings methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, customer experience and overdraft fees.

Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.