Marcus by Goldman Sachs Just Raised Its Savings Interest Rate to 2.15%

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    Competitive Rates
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    Different CD Types
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    Unlimited and Same-Day Transfers
Overview:

Marcus by Goldman Sachs is a great online banking option for anyone looking for a great savings account, multiple CD types, reliable customer service, and an easy-to-use online site and mobile app. Marcus’ account options are somewhat limited, though: there are no money market accounts or checking accounts offered.

NextAdvisor’s Take

Pros
  • Same-day transfers of up to $100,000 for high-yield savings accounts
  • 10-day CD rate guarantee
  • Very high APYs on deposits
  • Investment and loan offerings in addition to savings
Cons
  • No money market account or checking account
  • $500 minimum balance for CDs
  • Credit card options are limited to GM co-branded cards

Additional Details

  • Online-only bank; access your account via mobile app or online
  • After you open a CD and make a $500 deposit, you’re guaranteed the highest rate offered between the opening day and 10 days following
  • CD options include high-yield, no-penalty, and rate bump CDs
  • Marcus Invest robo-advisor investing tool for longer-term saving and investing goals
  • Home equity and debt consolidation loans available
  • Opt into fixed-rate installment loans with some retailers using Marcus Pay
  • Unlimited withdrawals and same-day transfers (under $100,000) for savings accounts
  • No ATM access
  • Marcus deposit accounts are FDIC insured

Marcus, the online banking division of Goldman Sachs, now offers 2.15% APY on its high yield savings account.

The bank has increased rates a few times already this year, and the 2.15% bump is up from 1.90% previously. It follows the Federal Reserve’s latest interest rate hike, in its ongoing effort to combat inflation.

And as the Fed continues raising rates, experts expect more banks to follow suit. While it’s important to note that rising rates also means higher mortgage rates, higher credit card APRs, and a general increase in the cost of borrowing money, you can benefit with higher APYs on savings accounts and CDs. The Fed is also expected to continue raising rates in the coming months, which means savers can benefit from even higher interest rates as 2022 goes on.

Here’s more about why Marcus’ online savings account is one of our favorite high yield accounts available today, and what you can get with a 2.15% APY on your savings:

How Much Can You Earn with Marcus’ 2.15% APY?

Marcus new APY offering increases interest for savers to a total 2.15% APY, up from the previous rate of 1.90%. Here’s what difference that can make for your savings:

Say you have $5,000 in an emergency fund with Marcus. At 2.15% APY, you could earn $107.50 over the course of one year, even without making any further contributions. At Marcus’ previous 1.90% APY, you would earn $95 in the same period. 

An extra $20 over an entire year isn’t the greatest amount, but the added interest compounds over time and as you add more money to your savings. 

For example, say you not only put the $5,000 in your account, but also contributed $100 each month to your savings. Here’s how your balance would grow over the 12-month period given different APYs, including the national average of 0.17%:

Marcus Online Savings Account 2.15% APYPrevious Marcus Online Savings Account 1.90% APYNational Average Savings Rate of 0.17%
Starting Balance$5,000$5,000$5,000
$100 Monthly Contributions + Interest$1,319.28$1,305.41$1,209.43
Balance After 12 Months$6,319.28$6,305.41$6,209.43

In this example, you could earn more than $109 additional interest over the course of a year, just by choosing a 2.15% interest high yield account over a 0.17% traditional savings account.

Why We Like Marcus by Goldman Sachs

Marcus is a great option for online savings, and is among our list of the best high yield savings accounts

Not only does the Marcus online savings account offer a competitive 2.15% APY, but it also charges no monthly fees and has no minimum deposit or balance requirements. There’s no limit to the number of withdrawals or transfers you can make, and you can set up automatic transfers from another account on a regular basis.

Marcus has an app you can use to manage your account, and offers high yield and no-penalty CD options in addition to its high yield savings account. 

We think Marcus is a great savings account option, but there are still other high yield savings accounts with higher APYs on the market today.

Just remember, the most important thing you can do to maximize your savings is open an account and start contributing. Look for an account that aligns with your savings goals and has a competitive rate to help you earn a few extra dollars on your balance with no fees. Then, make regular contributions to reach your emergency fund number or other short-term savings goal. Then, you can focus on other financial goals, like saving for retirement or paying down debt.