Marcus by Goldman Sachs Bank Review: Services, Pros and Cons (September 2024) (original) (raw)
Marcus by Goldman Sachs is a digital bank that is part of Goldman Sachs Bank USA. It is mainly known for its certificates of deposit (CDs) and high-yield savings account, most of which offer very competitive rates. The bank also focuses on avoiding hidden fees and providing financial education tools.
In this Marcus by Goldman Sachs review, we at the MarketWatch Guides team will delve into its services and reputation to help you decide if this online bank is right for your personal finance goals.
Our Marcus by Goldman Sachs Bank Review
We give Marcus by Goldman Sachs 4.4 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support. The bank’s CD offerings earn its highest rating, followed closely by its savings account. Although it doesn’t offer checking or money market accounts, Marcus’ overall bank experience also scores well.
Here’s how the company scores in each of our review categories:
*Ratings are determined by our editorial review team. Learn more about our scoring methodology.
Marcus by Goldman Sachs vs. Other Top Banks
While online banking is available 24/7, Marcus lacks the in-person banking options that Bank of America, Chase Bank and Wells Fargo give customers. Those top banks feature between 3,800 and 4,700 branches and 12,000 and 15,000 ATMs nationwide. This allows you to do cash transactions or get face-to-face help opening accounts and solving problems. Plus, unlike Marcus, these top banks support mobile check deposits.
The other top banks offer more banking services than Marcus, including checking accounts with waivable monthly fees and various loans and credit cards. However, their savings accounts usually have monthly fees.
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| Our Rating | 4.4 | 4.0 | 3.8 | 4.0 |
| Savings APY | 4.25% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 4.50% | 0.01% | 1.01% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | N/A | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
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| Our Rating | 4.4 | 4.0 | 3.8 | 4.0 |
| Savings APY | 4.25% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 4.50% | 0.01% | 1.01% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | N/A | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
Marcus by Goldman Sachs Pros and Cons
While its parent company dates back to 1869, Marcus by Goldman Sachs began in 2016. Its goal was to be an all-digital bank with easy-to-understand financial products. Initially, Marcus focused on personal loans before expanding to include deposit accounts. The online bank now has U.S. and U.K. platforms with an estimated 4 million people using its products.
This financial institution stands out for minimizing fees, paying competitive savings rates and providing around-the-clock support. Its drawbacks mostly involve the limitations of online-only banks, including limited product and transaction options and no in-person banking options.
Pros
Higher APYs: All Marcus accounts have annual percentage yields (APY) that are several times higher than the Federal Deposit Insurance Corp. (FDIC)’s national average rates.
CD options: Marcus offers numerous CD options, including a no-penalty CD and a bump-up CD.
No fees: There are no monthly service fees for deposit accounts.
Customer service: Marcus has 24/7 phone and online chat options.
Cons
Access issues: Marcus has no physical branches or ATM network.
Funding limitations: Account holders can’t use cash or mobile checks for deposits.
Limited accounts: Marcus doesn’t have as many banking products available as some other financial institutions, including a checking account.
Who Is Marcus by Goldman Sachs Best For?
Because it is not a full-service bank, Marcus by Goldman Sachs is best for someone who wants to take advantage of its rates on savings products, whether that be its high-yield savings account or one of its many CDs.
Marcus by Goldman Sachs Bank Account Options
Marcus by Goldman Sachs specializes in a small selection of deposit accounts for saving money. It offers a high-yield savings account for everyday use with no restrictions on withdrawing funds. The bank also features three types of CDs, including standard, bump-up and no-penalty options. Marcus does not offer a debit card with savings accounts.
All of its bank accounts are FDIC insured up to the legal limit of $250,000 per depositor, bank and account category.
Marcus specializes in investment bank accounts as well. Designed to let you get started with just $5, these accounts are ideal for planning for retirement or saving toward another life goal.
Its online and mobile banking experience includes many helpful features. You can keep track of all loans and deposit accounts and set up payments and transfers. The Marcus Insights feature in the mobile app helps track how you’re using your money, including your spending categories.
| Marcus by Goldman Sachs Account | Standard APY* | Minimum Opening Deposit | Minimum Account Balance |
|---|---|---|---|
| Online Savings Account | 4.25% | 0∣0 | 0∣0 |
| High-Yield CD | 3.90% to 5.15% | 500∣500 | 500∣500 |
| No-Penalty CD | 4.40% | 500∣500 | 500∣500 |
| Rate Bump CD | 4.40% | 500∣500 | 500∣500 |
Marcus by Goldman Sachs Bank Customer Experience
Marcus by Goldman Sachs has earned a positive reputation as an online bank. In the J.D. Power 2023 U.S. Direct Banking Satisfaction Study focusing on online banks, the Marcus savings account came in second for overall satisfaction, behind Discover’s savings account.
The bank is known for being a stable and safe place to put your money. Bauer Financial, which assesses financial stability, recommends Marcus and lists a 5-star (superior) rating for the institution. Additionally, Marcus has been a Better Business Bureau-accredited bank since 2018 and has an A+ rating.
Plus, the Marcus by Goldman Sachs app has 4.9 out of 5 stars on the App Store and 4.4 out of 5 stars on Google Play. Customers often mentioned liking the straightforward app layout and multiple log-in options for security. However, some users mentioned issues getting account alerts and experiencing lags while browsing the app.
The Bottom Line: Is Marcus by Goldman Sachs Right for You?
If you’re looking for savings account options through an online bank, Marcus by Goldman Sachs offers competitive rates and a sleek mobile banking experience. It’s also a good fit if you like having multiple CD options and being able to get 24/7 customer support.
Just make sure you’re comfortable with not having ATMs or branches. The bank’s limited options for deposits and withdrawals, including no options for cash or mobile deposits, may become inconvenient. However, Marcus is a great option to use as a secondary account for customers interested in earning a high APY on their savings.
Learn More About Marcus by Goldman Sachs
See how Marcus stands out in our roundups of the best financial institutions and deposit products available today:
- #4 on Best CD Rates
- #2 on Best 6-Month CDs
- #3 on Best 1-Year CDs
FAQ: Marcus by Goldman Sachs Bank Reviews
The main disadvantages of Marcus by Goldman Sachs are that you can’t visit a branch or ATM, deposit cash or make a mobile check deposit. The bank also has limited financial services and products, including no checking accounts, money market accounts or loans.
While Marcus by Goldman Sachs has decided to exit the personal loan business, it hasn’t announced any plans to close entirely. Its GM credit cards, deposit accounts and investment products remain available on the website, and you can still submit applications.
The Marcus by Goldman Sachs CDs and online savings account don’t have transfer fees or monthly account fees. An early withdrawal fee could apply to CDs, but you can avoid this fee with a no-penalty CD.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
*Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com .