Overview

1. Marcus by Goldman Sachs High-Yield Certificates of Deposit

• Our Rating: 5/5 stars

• Initial Deposit Required: $500

• 1-Year APY: 4.90%, 3-Year APY: 4.15%

Analysis: Marcus by Goldman Sachs stands out for its robust CD rates, accompanied by a diverse selection of term options. Spanning from six months to six years, with three no-penalty choices, Marcus caters to various financial goals. Additionally, the bank maintains a modest minimum opening deposit of $500, and once initiated, CDs benefit from a 10-Day Rate Guarantee.

2. Varied CD Terms with Competitive Rates

For individuals seeking CDs from a trusted institution offering above-average interest rates, Marcus by Goldman Sachs presents an attractive option. Its competitive rates, including a noteworthy 4.90% APY on the 12-month CD, stand out in the market. Like other Marcus CDs, a $500 minimum deposit is obligatory, alongside the assurance of the 10-day CD rate guarantee.

Benefits:

• Favorable interest rates

• Assurance of 10-Day CD Rate Guarantee

Drawback:

• Mandatory minimum opening deposit

Marcus CD Rates

7-month No-Penalty CD terms: 4.70% APY, 11-month No-Penalty CD terms: 4.70% APY, 13-month No-Penalty CD terms: 4.70% APY, 6-month CD terms: 4.80% APY, 9-month CD terms: 4.90% APY, 12-month CD terms: 4.90% APY, 18-month CD terms: 4.60% APY, 24-month CD terms: 4.20% APY, 36-month CD terms: 4.15% APY, 48-month CD terms: 4.05% APY, 60-month CD terms: 4.00% APY, 72-month CD terms: 3.90% APY

Marcus CD Overview

• Initial Deposit Required: $500

• Interest: Compounded daily, credited monthly

• CD Terms: 12 options, ranging from 6 months to 6 years

• Monthly Fees: None

Marcus by Goldman Sachs presents a diverse selection of CD terms, spanning from 6 months to 6 years. Each term offers a unique interest rate, reaching a generous 4.90% APY.

With a minimum deposit of $500, opening a Marcus CD requires less than what many other banks demand. You have a 30-day window post-account opening to fully fund your account; however, no additional deposits are allowed thereafter.

10-Day CD Rate Guarantee

Marcus assures a 10-day CD rate guarantee in the event of interest rate fluctuations post-account opening. Should rates rise within this period, you’ll receive the higher APY. Conversely, if Marcus CD rates decline, you’ll still enjoy the initially higher rate. The only condition for this guarantee is funding your account with the $500 minimum deposit within the first 10 days. Failure to do so subjects you to the prevailing rate on the day your Marcus CD reaches the $500 minimum.

Interest Disbursement

Marcus operates a system where your simple interest compounds on a daily basis, seamlessly adding to your principal balance every month. Alternatively, you have the freedom to withdraw your earned interest at any time, penalty-free.

No-Penalty CDs

For those concerned about needing access to funds before a CD matures, Marcus no-penalty CDs offer a solution. Unlike traditional CDs, these accounts do not impose fees for early withdrawal. However, it’s important to note that no-penalty CDs typically yield lower interest earnings on your principal balance. Nevertheless, the flexibility they afford provides peace of mind for those uncertain about future financial needs.

Marcus offers three term lengths for these CDs, with interest rates falling in the middle range compared to other no-penalty CDs in the market.

Early Withdrawal

Marcus CDs are designed to safeguard your savings, ensuring they remain untouched until maturity. Should you choose to withdraw funds before your CD matures, an early withdrawal penalty will be incurred. This penalty is determined by your term length and the balance of your principal account at the time of withdrawal.

Early withdrawal penalties are as follows:

• Terms of 1 year or less: Equivalent to 3 months’ worth of interest

• Terms of 1 to 5 years: Equivalent to 6 months’ worth of interest

• Terms exceeding 5 years: Equivalent to 9 months’ worth of interest

Comparing Marcus CD Rates

Marcus often offers CD rates that surpass those provided by many traditional banks on Main Street and even some online rivals like Discover, Capital One, and Briodirect. While Marcus’s rates align closely with those of Synchrony and Popular Direct, it falls short of leaders like Bread Financial (formerly Comenity Direct) in some instances.

Remember, CD interest rates are subject to market fluctuations, meaning they can change frequently. Given the time commitment involved in CD maturity, it’s wise to opt for well-established banks and reputable financial institutions for depositing your funds.

In summary, Marcus CD rates stand competitively among other online banks, and its range of no-penalty CDs offers flexibility for those requiring access to savings before maturity. Ensure you compare rates across different banks and credit unions to identify the most suitable CD accounts for your financial needs.

Considering Marcus for CDs?

If you’re in pursuit of competitive interest rates, Marcus could be your ideal choice. It’s frequently highlighted in our top CD rates compilations, offering rates that outshine many traditional and online banks.

Marcus stands out not only for its rates but also for its array of CD options. Whether you’re eyeing high-yield CDs, no-penalty CDs, or bump-up CDs, Marcus has you covered. These offerings are particularly appealing since not all banks provide such options.

However, if you’re seeking a one-stop financial solution including checking or money market accounts, Marcus may not fully meet your needs. With Marcus, you’ll find high-yield savings accounts and CDs only. Additionally, keep in mind that withdrawing funds will require transferring to an external bank account, as Marcus does not issue debit or ATM cards with its savings accounts or CDs.

Marcus CD FAQs

Q1: How can I initiate a Marcus CD?

A1: To open a Marcus CD, simply navigate to their online platform. Select the desired CD term and input your personal details such as name, address, date of birth, and Social Security number. Proceed by transferring funds from your linked deposit account with another bank. For any queries, feel free to reach out to customer support via online chat or by dialing 1-855-730-7283.

Q2: What is the minimum deposit required to open a Marcus CD?

A2: You must have a minimum of $500 to open any Marcus CD.

Q3: What are the penalties for early withdrawal from a Marcus CD?

A3: In the event of an early withdrawal from a Marcus CD prior to its maturity date, specific penalties apply: For high-yield or bump-up CDs, the penalties are as follows - for terms under one year, the penalty equals 90 days of simple interest; for terms between one and five years, the penalty equals 180 days of simple interest; and for terms exceeding five years, the penalty amounts to 270 days of interest.