📍 Update June 2022: Following the FED’s largest rate hike since 1994 of 0.75% (bringing the prime rate to 1.67%), Marcus by Goldman Sachs raised their CD rates by between 0.05% and 0.20% on most terms 12 months or greater. See all of their CD rates below.]
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 2 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 11 CD terms to choose from. All are standard terms except the “No-Penalty CD” which comes with a 7 month term and an APY of 0.45% and the 10 month promotional CD going on through the end of May 2022, which yields 1.10% APY.
|7 month No-Penalty CD||0.45%|
|11 month No-Penalty CD||0.35%|
|13 month No-Penalty CD||0.90%|
To put the offers above in perspective, the current national average for 12 month CDs and 60 months CDs sit at just 0.21% APY and 0.39% 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.
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 You can have all interest automatically reinvested, all interest withdrawn, or some withdrawn and some reinvested—you can make any changes over the course of the term.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.
There is a 10 day grace period within which you should try to make any changes or withdrawals after a CD renews. If you don’t and you find yourself needing to withdraw funds from a high-yield CD (not a no-penalty CD!) after this, the fees are assessed 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.