Marcus by Goldman Sachs Review: An Online Bank With Limited Products

Marcus by Goldman Sachs is named after the namesake of Goldman Sachs Bank USA — the one and only Marcus Goldman, who launched his career in finance back in 1869.

Today, Marcus by Goldman Sachs is an FDIC-insured (Federal Deposit Insurance Corporation-insured) bank that leverages that 150+ years of experience to deliver a suite of savings and lending products.

Marcus by Goldman Sachs is not your typical financial institution, and its services cater to a specific kind of customer. Our review will help you determine whether that includes you.

In this review:

What Is Marcus by Goldman Sachs?

Pros

While most customers would be better off with a different online bank, Marcus by Goldman Sachs does carry some advantages over traditional brick-and-mortar institutions — and even has some bright spots over other online banks and credit unions, including:

  • High APY for savings account and certificates of deposit (CDs).
  • No-Penalty CD option.
  • Longer-than-typical term options for CDs.

Cons

However, the market is saturated with banks that offer far more products and services than Marcus by Goldman Sachs. Here are a few of this online bank’s drawbacks:

  • No checking account.
  • No mobile deposit or ATM network.
  • Need an external account in order to transfer money.
  • No physical locations for in-person banking.

Despite our lackluster opinion of Marcus by Goldman Sachs, others in the industry have found merit in the institution: NerdWallet named it among its Best Banks for Savings in 2019 while GoBankingRates named Marcus to its Best Savings Account for 2020 list.

Banking with Marcus by Goldman Sachs: How We Rate It

The Marcus by Goldman Sachs suite of products is lacking, as it does not offer a checking account, small business banking, retirement accounts or insurance options.

Because of this, our Marcus by Goldman Sachs review focuses on the bank’s High-Yield Savings account and its CD options, but you can also find information on loans and MarcusPay further down.

Checking

Grade: N/A

Because Marcus by Goldman Sachs does not offer a checking account, we did not give it a grade.

Savings

Grade: B+

What Marcus by Goldman Sachs has going for it is the high interest rate for its savings account, which it can afford as an online bank thanks to low overhead. Its 1.05% APY means it pays out more than banks like Chase (0.02%), Citibank (0.04%) and Wells Fargo Bank (0.01%). But other online banks like Comenity Direct (1.35%) and Ally (1.10%) have it beat.

Two bright spots: This account carries no monthly maintenance fees nor does it have a minimum deposit amount.

Because you can’t open an associated checking account with Marcus by Goldman Sachs, you’ll need to open an account with another institution so you can transfer money in and out of the account. This will be especially important since Marcus is also missing a mobile check deposit option and an ATM network.

Certificates of Deposit

Grade: B+

Marcus by Goldman Sachs offers options for certificates of deposit (CDs), and while other aspects of this bank leave something to be desired, its CDs are actually worth writing home about.

The High-Yield CD offers terms ranging from six months to six years. Many CDs are capped at five years, so this is a hallmark of the option at Marcus by Goldman Sachs. At the time of writing, its APYs ranged from 0.60% on the low end to 1.15% on the high end.

With Marcus’ 10-Day CD Rate Guarantee, you can select a CD and term, and if the rate increases within the first 10 days, Marcus will automatically give you that rate instead.

Marcus also offers a No-Penalty CD for seven months at 1.00%. You can withdraw the full balance early (beginning seven days after funding) without penalty — hence the name.

Both CD options require a $500 minimum deposit.

Convenience

Grade: D

You can use a lot of words to describe banking with Marcus by Goldman Sachs, but “convenient” isn’t one of them.

You have to use an external account to transfer money into your account, which means you’ll be forced to juggle at least two banks.

You can’t deposit checks at all, because there are no physical locations and the app doesn’t have a mobile check deposit option.

And good luck finding an ATM to withdraw cash, as it’s not an option for any of the Marcus by Goldman Sachs accounts.

The only truly convenient feature is its mobile app.

Mobile Banking

Grade: A

The Marcus by Goldman Sachs mobile app is available in the U.S. for Apple devices via the App Store and Android devices via Google Play. With the sleek and easy-to-navigate app, you can check balances, schedule transfers and check progress toward financial goals.

The account is protected by multi-factor authentication and 128-bit SSL encryption, allowing you to log in with biometric screening (fingerprint or facial recognition).

This app was a long time coming. Marcus by Goldman Sachs did not launch the app in 2020; its absence hurt the bank in previous reviews (including our own).

Though banking options with Goldman Sachs are limited, users love the app. Reviewers running the app on iOS devices gave it an average 4.9 star rating on the app store while Android users gave it a 4.8 (at the time of writing).

Small Business Banking Options

Marcus by Goldman Sachs does not offer small business banking. Instead, consider these alternative banks for small businesses:

  • Wells Fargo Simple Business Checking Account and Business Market Rate Savings Account, loans up to $100,000 and a 1.5% cash-back credit card.
  • Chase Total Business Checking and Business Total Savings, SBA Express line of credit up to $350,000 and Ink Business credit cards.
  • Capital One Spark Business Checking and Savings, and 1.5% or 2% cash-back credit cards.
  • Axos Basic Business Checking or Business Interest Checking, Business Savings, and lines of credit or commercial loans starting at $250,000.
  • Navy Federal Credit Union for business owners who are veterans, active-duty military, employees of qualified government agencies and their immediate family.
  • Azlo for online-only, fee-free business checking.

Marcus by Goldman Sachs Account Fees

There are no fees connected with the Marcus by Goldman Sachs High-Yield Savings account.

The High-Yield CD includes an early withdrawal penalty, so if you’re worried about needing money sooner, you have three choices:

  • Fund a CD with a shorter term.
  • Choose the No-Penalty CD.
  • Keep the money in a savings account.

Other Marcus by Goldman Sachs Products

Marcus by Goldman Sachs offers more than its savings account and CDs. Specifically, you can apply for loans and use MarcusPay.

Loans

You can apply for various loans through Marcus by Goldman Sachs:

  • Home improvement loans are ideal for renovations, appliance replacements, repairs and purchases on items such as pools.
  • Personal loans have no sign-up fees and no prepayment fees. Rates currently range from 6.99% to 19.99%.
  • Debt consolidation loans could save you if you are drowning in debt from various lenders

MarcusPay

MarcusPay is available at multiple retail locations and with various airlines; it’s the official partner of JetBlue Vacations. This payment option is for products ranging from $750 to $10,000 and can be paid back in 12 or 18 months, with rates ranging from 10.99% to 25.99%.

Your first payment isn’t due until a month after your first purchase, and there are no fees for the purchase.

Marcus by Goldman Customer Service

The institution has a U.S.-based Contact Center that is open seven days a week.

  • To call about online savings and certificates of deposit, dial 1-855-730-SAVE (1-855-730-7283).
  • To call about personal loans, call 1-844-MARCUS1 (1-844-627-2871).

You can find more contact information and hours of service here.

Is Marcus by Goldman Sachs Right for You?

Marcus by Goldman Sachs may not be the best overall bank out there, especially for someone who needs basic bank services like a checking account, but for thousands of Americans each year, it is the right choice for their money management.

Marcus by Goldman Sachs might work for you if:

  • You already have a checking account that you’re happy with and you’d just like to find a high-rate savings account, even if it’s at a separate institution.
  • Mobile app performance is a top criterion for you.
  • You’re interested in funding a CD.

Marcus by Goldman Sachs is not right for you if:

  • You need a checking account.
  • You need small business banking.
  • You want easy access to ATMs or brick-and-mortar locations.
  • You want the ability to deposit checks via mobile.

Our Bank Review Methodology

The Penny Hoarder’s editorial team considers more than 25 factors in its bank account reviews, including fees, minimum daily balance requirements, APYs, overdraft charges, ATM access, number of physical locations, customer service support access and mobile features.

To determine how we weigh each factor, The Penny Hoarder surveyed 1,500 people to find out what banking features matter most to you.

For example, we give top grades to banks that have low fees because our survey showed that this is the No. 1 thing you look for in a bank. Because more than 70% of you said you visited a physical bank branch last year, we consider the number of brick-and-mortar locations. But more than one-third of you use mobile apps for more than 75% of your banking, so digital features are also considered carefully.

Ratings are assigned on a scale of one (worst) to five (best) stars across the following categories:

  • Personal checking accounts
  • Personal savings accounts
  • Convenience
  • Mobile banking
  • Small-business banking

Credit card and loan products are not currently considered.

Timothy Moore is a market research editing and graphic design manager and a freelance writer covering topics on personal finance, careers, education, pet care and automotive. He has worked in the field since 2012 and has been featured on sites like The Penny Hoarder, Debt.com, Ladders, Glassdoor and The News Wheel.

This was originally published on The Penny Hoarder, a personal finance website that empowers millions of readers nationwide to make smart decisions with their money through actionable and inspirational advice, and resources about how to make, save and manage money.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.