Update: As of November, 2018, the new interest rate on Marcus Savings accounts is 2.05%.
Something as simple as a savings account can be a quick place to improve your personal finances. Today, we are going to do a Marcus Online Savings Account review to show you how.
When it comes to high-interest online savings accounts, there are a lot of really great rates, and a lot of not so great fine print. One of the most common tricks for online banking is to only offer the high-interest rate on part of the balance, say the first $500 or even the first $5,000. The remaining balance earns a much more mundane online savings account rate of interest. For example, the Farmers Insurance Credit Union offers a high-yield checking account with an eye-popping 5% interest rate. But, before you transfer your account, note that high rate only applies to the first $5,000.
Check out the Credit Karma reviews.
Marcus Goldman Sachs Online Savings Account
Goldman Sachs has traditionally catered to high-net worth individuals and their investing needs. For many services, you’ll need a million dollar minimum to even talk to someone. Recently, however, the company has reached into the standard retail worth with Goldman Sachs Marcus brand online banking. And, as a company used to dealing with big dollar amounts, they aren’t going to limit your high online interest rate to a small portion of your balance. There is a limit to how much you can deposit, it’s a million dollars.
Marcus Savings Account Review
First, let’s start with the basics. This Goldman Sachs savings account is provided by the Goldman Sachs Bank division of Goldman Sachs. As a member FDIC bank, all funds in Marcus online banking are FDIC insured up to the usual limits of $250,000 per person, or $250,000 per owner for joint accounts.
What about Marcus online savings fees?
The Marcus savings account doesn’t come with any unusual fees. There are no monthly fees, and no minimum balance fees either. (Technically, you have to have at least $1 on deposit to earn the full interest rate.) There is no ATM or debit card available with the account, so obviously, there are no ATM fees or card fees either. There are no Marcus savings account fees for transfers, however, the bank on the other end of the transfer might charge its own fees.
Currently, the interest rate is 1.95% and that is on every dollar, with no minimum and no maximum other than the account limit. Currently, Goldman limits Marcus accounts to a maximum $1,000,000 balance. Most regular money market and banks accounts are paying below 1% interest these days. That makes doubling the interest rate on your savings a real possibility.
See my Acorns review.
After that, all of the Marcus savings account cons are just the usual ones attached to dealing with savings accounts and online banking. Per federal banking law (Thanks, big bank lobbyists!), you are only allowed up to six withdrawals per month. Since it is an online bank, you need to transfer your money to another financial institution to get full access to it. ACH transfers to and from your Marcus account will take 3 to 5 business days depending on who is on the other end of the transfer.
There is a maximum withdrawal from Marcus savings accounts of $125,000 using the online banking interface, but high amounts can be achieved by calling the bank.
Is Marcus Savings Worth It?
As an overdraft account, or for your emergency savings, Marcus probably isn’t a good fit. It just takes too long to get access to your money if you need $1,000 now. However, as a place to put your cash reserve, the high-interest Marcus account is a great financial tool. A high rate on your whole balance, and full FDIC insurance, makes Marcus a comfy place to park three to six months of living expenses, while letting that money still grow.
Marcus will not replace your “regular” bank, but it does offer a lot of upside for savvy users with sizable savings.