You’ve likely heard of Goldman Sachs, the global investment services firm that’s been around since 1869 and has over $2.1 trillion in assets under management, but you might not be as familiar with their digital subsidiary, Marcus.
Marcus by Goldman Sachs is an online-only, FDIC-insured bank offering savers an online savings account, and 9 regular CDs with terms ranging from 6 months to 6 years and 4 promotional CDs.
All deposits come with a low minimum deposit requirement of just $500 and are FDIC insured up to $250,000 per depositor.
Named after Goldman Sachs pioneer Marcus Goldman and founded in 2016, this bank regularly offers yields comfortably above the national average on both their fixed and variable rate deposit accounts.
To find out more about Marcus and their CD Rates and savings account, continue reading our review below.
In this post you'll learn:
Marcus CD Rates + Account Details
Marcus offers eleven CD terms to choose from. All are standard terms except their “No-Penalty CDs” which come with terms of 7, 11 and 13 months.
|7 month No-Penalty CD||0.45%|
|11 month No-Penalty CD||0.35%|
|13 month No-Penalty CD||3.50%|
To put the offers above in perspective, the current national average for 12 month CDs and 60 months CDs sit at just 1.07% APY and 1.09% APY, respectively, according to recent FDIC data.
No- Penalty CDs
Marcus by Goldman Sachs currently offers 3 No-Penalty CDs with terms of 7 months, 11 months and 13 months.
The no-penalty CD is much more flexible than your standard certificate as it comes with no early withdrawal penalty.
You’ll earn the fixed interest rate for the duration of your CD, but you can withdraw up to 100% of the funds as soon as 7 days after issuance penalty-free. This is the only difference between a high-yield and no-penalty Marcus certificate as far as terms and conditions.
Rate Bump CD
Marcus’s newest certificate of deposit special is their 20 month Rate Bump CD. These are great products for rising interest rate environments because they let account holders raise the rate of their CD one time during its duration. Of course there are no penalties or fees associated with changing the rate and you may request to change it whenever the CD holds a higher rate than the one you are locked in with.
As with all of Marcus’s CDs, this one also comes with a minimum deposit requirement of $500.
CD Account Details
Interest is compounded daily and credited monthly to your certificate account, or you can withdraw it as you please. You can have all interest automatically reinvested, all interest withdrawn, or some withdrawn and some reinvested—you can make any changes over the course of the term.
A $500 minimum opening deposit and average daily balance is required to earn interest on a certificate account.
Marcus CDs are backed by a 10-day Rate Guarantee, which promises the highest published interest rate and APY Marcus has to offer on your term for 10 days after certificate issuance. Essentially, you’ll get the highest rate on your account as possible for a short time—you aren’t locked into a rate until that 10-day period is up. To ensure that this safety net is enforced, just make sure you have the $500 minimum deposited in the account within this time period.
Grace Period and Early Withdrawal Fees
There is a 10 day grace period within which you should try to make any changes or withdrawals after a CD renews.
If nothing is done during this grace period CDs automatically renew with the same term and the going APY at that time.
If you need the funds from your CD prior to its maturity you will incur an early withdrawal fee (not applicable to No Penalty CD specials). Early withdrawal fees are as follows:
- For terms of less than 1 year, you’ll be charged 90 days’ simple interest
- for terms of 1 – 5 years, you’ll be charged 270 days’ simple interest
- for terms more than five years, you’ll be charged 365 days’ simple interest.