In this Marcus by Goldman Sachs Bank review, we take a look at whether or not Marcus by Goldman Sachs offers the solutions you need to support your personal finance goals.

What is Marcus by Goldman Sachs?

Goldman Sachs is a prestigious investment banking giant headquartered in New York founded in 1869. It launched its savings bank under the name Marcus in 2017. Thus, Marcus by Goldman Sachs is a brand of Goldman Sachs named after one of the founders, Marcus Goldman. It’s purely an online bank that’s marketed as a simple, accessible banking option that provides individuals with added control over their finances. In this Marcus by Goldman Sachs Bank review, we take a look at whether or not Marcus by Goldman Sachs offers the solutions you need to support your personal finance goals.

Goldman Sachs Vs Marcus, How Do They Differ?

Most individuals know Goldman Sachs as a prestigious Wall Street firm. The name itself, Goldman Sachs, is associated with high-end finance. For nearly a century, the firm was the bright star of Wall Street and the biggest player in IPOs (Initial Public Offerings) having a dominant presence on trading floors. Marcus by Goldman Sachs, on the other hand, has an approachable, “can-do” brand image. It’s centered on helping people become smarter about their money and achieving financial well-being. Marcus bank has positioned itself as a trusted name in the banking industry as it’s owned by Goldman Sachs, which is an established institution with a 150-year old long history. 

What Product Does Marcus Bank Offer?

As reiterated earlier, Marcus by Goldman Sachs bank makes banking with Goldman Sachs accessible for the average person. It’s an online platform. Therefore, it doesn’t have any bank branches. Neither does it offer support for checking accounts or ATMs.  In that respect, it does not offer as many financial products as other banks. Some of its popular products include high-yield savings accounts, fixed-rate personal loans, and high-yield certificate of deposits. It also offers a mobile banking app available on the Apple store and Google play for both Apple and Android phones. 

Savings Accounts

Marcus bank charges no fees to open a Marcus savings account. There are no recurring account maintenance fees, service fees, or transaction fees to transfer cash to and from the savings account. However, third-party banks that you link to the savings account may charge you fees to facilitate movement of funds to and from your account. The online savings accounts offer competitive high-yields of 1.05% APY. Marcus also doesn’t require a minimum deposit or a minimum account balance. However, there’s a $1 million maximum limit per account that should not exceed $3 million per account owner. 

Marcus by Goldman Sachs Pros & Cons

ProsCons
No monthly feesThere are higher APYs out there
Offers competitive yield on savings account$1 million maximum limit on the savings account
Requires $1 to start earning APYNo debit or ATM card

Certificate of Deposits (CDs)

Marcus bank offers two options for CDs that depend on how long you want to commit you cash. They include:

High-Yield CDs: These kinds of CDs are available for a minimum deposit of $500 with a fixed rate of return depending on the term that you opt for. Terms typically range between 6 months and 6 years. Marcus charges a penalty fee for early withdrawals that amounts to a number of days’ worth interest. 

No-Penalty CDs: These CDs are a great option for anyone who wants to avoid the possibility of early withdrawal penalties. Options available cover 7 months, 11 months, and 13 months. Minimum deposit is still $500 even on these CDs.

Marcus CDs Pros & Cons

ProsCons
Interest is compounded on a daily basisNo-penalty CDs pay lower yields than high-yield CDs
Low minimum deposit required to open a CDYields are not that great. Other online banks pay higher interests.
Terms between 6 months to 6 years
 

Personal Loans

Marcus by Goldman Sachs offers unsecured loans for purposes such as home improvement, debt consolidation, credit card debt payment, etc. They offer no-fee personal loans in amounts of about $3,500 to $30,000 with APRs ranging from 6.99% to 23.99% with 36 to 72 months’ loan terms. Creditworthy applicants qualify for lower rates and longer loan terms than applicants with bad credit scores. Additionally, rates are generally higher for longer term personal loans. 

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What is MarcusPay?

Goldman Sachs is pushing both into consumer and retail banking. MarcusPay is their recent effort into the retail banking sector. MarcusPay is their new POS (point-of-sale) installment product with partner JetBlue Airways, which was in development well before the Coronavirus epidemic. As noted on their website, MarcusPay is “a no-deposit, no-fee, fixed rate loan that allows customers to pay for retail purchases over time at a point-of-sale.” It allows for loans from $750 to $10,000 to be paid over a period of 12 to 18 months. APRs range from 10.99% to 25.99%. 

A few other critical things that you need to know about MarcusPay include:

  • MarcusPay was created to diversify Marcus bank away from the usual daily trading, investing, and advisory operations. 
  • JetBlue customers can use MarcusPay as an option to pay down vacation packages in Fall 2020. MarcusPay was in development before COVID-19 pandemic slowed down all global travel.
  • Marcus bank launched a website for MarcusPay that allows customers to break up big purchases into monthly payments.
  • MarcusPay allows customers to make purchases now and pay in equal installments with no fees or upfront payment. 

What is Clarity Money?

Clarity Money is a financial services management app that was acquired by Marcus bank in 2018. It’s available for download on both Apple and Android devices for free. It helps pinpoint areas in your regular spending that could be changed or completely removed. It also offers advice on saving money such as tips on spending less, best credit card to use, and how to cancel unnecessary subscriptions. It’s best for savers who want to cut down on their spending. It doesn’t have support for all banks and credit cards. Therefore, it does not qualify as a comprehensive budgeting tool. 

Bottom Line

Even though Marcus by Goldman Sachs bank offers a few financial products, the quality of the products is impressive. From high-yield savings accounts to high-yield CDs, this bank offers the best APYs in the market. Not to mention, its products are competitive and compelling for a number of financial needs. Also note that Marcus ranked number 1 in a 2019 J.D. Power study of customer satisfaction with loan providers.  Overall, it’s an online bank that lives up to its customer’s reputation. Anyone who wants to be smart about their money should definitely take a look at Marcus by Goldman Sachs. 

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