For those wanting to secure an emergency fund, gather a down payment, or achieve another short-term savings target, a high-yield savings account can provide safety for your funds while offering notable interest returns. Marcus by Goldman Sachs® presents a high yield—presently an impressive 4.40% APY—significantly above the national average of 0.46%, as reported by the FDIC in April 2024.

Marcus by Goldman Sachs Online Savings

As an online bank, Marcus by Goldman Sachs operates without physical branches. This online presence reduces overhead expenses, allowing the bank to offer a higher yield on customer deposits.

1. FDIC Insurance

Each Marcus Online Savings account comes with FDIC insurance covering up to $250,000 per depositor, per account, ensuring a vital safeguard for savings.

2. Attractive Annual Percentage Yield

Deposits in the Marcus account garner a 4.40% APY, placing it among the leading high-yield savings accounts available. Interest is compounded daily and applied monthly, a standard practice for high-yield accounts.

Unlike other high-yield savings options, the APY remains steady regardless of an increasing balance. However, there is a deposit cap of $1 million per account and $3 million per customer. The interest earned is taxable, and you will receive a 1099-INT form annually for reporting purposes.

3. Referral Incentive

Referring a new customer who opens a Marcus account grants both the referrer and the referred an additional 1.00% yield over the current APY for three months.

4. No Monthly Charges or Deposit Minimums

Much like other high-yield savings accounts, the Marcus Online Savings account features no monthly fees. Additionally, there’s no minimum deposit required to open the account, and no balance threshold to start earning interest.

There is no overdraft fee, but an account that remains negative for 60 days could be closed by Goldman Sachs.

5. Account Funding

Unlike some banks, the Marcus account does not support check deposits through its mobile app. However, you can fund the account through:

• ACH transfers, with same-day transfer options for amounts up to $100,000 if requested within the appropriate time frame

• Direct deposits from your employer

• Mailing a check (cash deposits are not accepted)

• Domestic wire transfers from your primary checking account

6. Accessing Funds

While you won’t receive a debit or ATM card, you can access your funds via:

• ACH transfers initiated either from Marcus or an external bank account

• Wire transfers facilitated by customer service

• Issuance of a check mailed to you

Additionally, Marcus by Goldman Sachs does not limit the number of withdrawals per month, unlike many other banks, ensuring limitless access without additional fees.

7. Customer Service

Customer support for the Marcus Online Savings Account is available 24/7, bypassing concerns about off-hours assistance. You can contact customer service at 1-855-730-7283 or via a live chat feature in your online account (though this is not accessible through the Marcus app).

Marcus by Goldman Sachs Online Savings Account Benefits and Drawbacks

This savings account brings considerable value, but there are several significant drawbacks to consider if you’re planning to open one.

Benefits:

• The Annual Percentage Yield (APY) is substantially higher than the national average.

• Allows same-day transfers of up to $100,000 to another account.

• No requirement to maintain a specific balance to earn interest or to evade monthly fees.

Drawbacks:

• No access to an ATM network.

• No availability of a checking account.

• Cash deposits are not supported.

Is the Marcus Online Savings Account Suitable for You?

The online high-interest savings account provides a good interest rate, though it’s not the top option available. To get the most out of your savings, it’s advisable to explore and compare different accounts to find the best fit for your needs. While this account avoids fees and doesn’t have a minimum balance requirement, these features are common in several other accounts too.

A distinguishing feature of Goldman Sachs is the capability to make same-day transfers from external accounts. Given that this is one of the primary ways to fund your account, it’s especially beneficial for transferring money out of savings in emergencies or for urgent needs.

However, this account may not be ideal for individuals who prefer face-to-face service or wish to manage both their checking and savings accounts with the same bank. Additionally, if you frequently use cash and need to deposit or withdraw cash from your savings account via an ATM, the Marcus account does not offer these services.