MARCUS BY GOLDMAN SACHS

Introduction-

The Goldman Sachs Group, Inc. is an American multinational investment bank and financial services company headquartered in NY City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting. It also provides investment banking to institutional investors.

The bank is one of the most important investment banking enterprises within the world, and maybe a primary dealer within the US Treasury security market and more generally, a prominent market maker. The group also owns Goldman Sachs Bank USA, a direct bank. Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in Lower Manhattan with additional offices in other international financial centers.

Marcus by Goldman Sachs bank offers online savings accounts, certificates of deposit (CDs), and private loans. Marcus is a division of investment banking giant Goldman Sachs, formed in 1869 by Marcus Goldman. Marcus, though, came on the scene in 2016, and it makes banking with Goldman Sachs more accessible for the typical person. 

Positives

  • Higher-than-average savings and CD rates
  • No monthly fees on savings accounts
  • No minimum deposits on savings, low minimum deposits on CDs
  • Penalty-free CDs
  • Fixed-rate personal loans with no fees

Negatives

  • No checking accounts
  • No ATM network
  • No branches
  • No mobile check deposits

Explanation of positives

  • 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.2 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.3 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%.4

Explanation of negatives

  • 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.5 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

Marcus by Goldman Sachs offers a fixed-rate, no fee consumer loan.

Marcus offers unsecured personal loans from $3,500 to $30,000. Rates range from 6.99% to 23.99% APR, and loan terms range from 36 to 72 months. For example, a $15,000 loan at 12.99% APR with 48 on-time monthly payments of $402.33 would have an estimated total cost of approximately $19,312. Only the foremost creditworthy applicants qualify for rock bottom rates and the longest loan terms. The rate will generally be higher for longer-term loans.

What Does Marcus Offer?

Marcus keeps the banking lineup simple with just a couple of offerings:

  • Savings account
  • Certificates of Deposit (CDs)

Savings Account

The online savings account is a classic online bank account with no fees and a high annual percentage yield (APY).1 Most banks specify that there are no monthly fees, but Marcus explicitly says you pay no fees to Marcus for this account.

Pays 0.80% APY

  • No monthly fees
  • No other fees charged by Marcus
  • No minimum deposit required

The rate you earn at Marcus is attractive, and you’re far better off here in terms of interest rates than at the biggest banks. That said, you would possibly be ready to earn a touch in interest more at a couple of other online banks. The best savings accounts often have interest rates above 1.00% APY.

Certificates of Deposit

Marcus offers a few of various sorts of CD, available within the usual terms.

High-Yield CD

High-yield CDs are standard CDs that allow you to lock during a relatively high rate for a specified length of your time. Marcus also offers a 10-day rate guarantee: If Marcus raises rates within 10 days after you open a CD, you automatically get the upper rate.

  • $500 minimum to open
  • Terms from six months to six years
  • Early withdrawal penalties apply
Marcus High-Yield CD Rates
TermAPY
6-Month0.45%
9-Month0.55%
12-Month0.85%
18-Month0.85%
2-Year0.85%
3-Year0.85%
4-Year0.85%
5-Year0.90%
6-Year0.90%

Like most banks, Marcus charges an early withdrawal penalty if you withdraw funds from a CD before maturity (unless you select the No-Penalty CD). At Marcus, the early-withdrawal penalty is as follows:

  • For terms under 12 months, 90 days’ worth of interest
  • For terms between 12 months and five years, 270 days’ worth of interest
  • For terms longer than five years, 365 days’ worth of interest

No-Penalty CD

If you wish to stay your options open, the No-Penalty CD from Marcus may appeal to you. You can withdraw the funds without penalty any time after seven days, but you get a guaranteed rate for the complete term of the CD.

  •  
Marcus No-Penalty CD Rates
TermAPY
7-Month0.75%

No-penalty CDs from Marcus are often useful in several situations:

  • When you are concerned that you will need your money before expected
  • When you expect rates to rise, and you would like the power to modify to a far better CD
  • When you think rates might fall soon, but you would like to stay earning at today’s rates while keeping your options open

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.9 10

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.

Conclusion-

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 makes 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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