Marcus Bank (Member FDIC) offers a much better savings account rate than you'll find at a traditional bank. With fewer overhead costs than brick-and-mortar banks, online banks can pass savings on to customers through higher rates and lower fees.
The best online banks (Marcus included) offer low or zero fees and APYs well above the average savings rate.
What is the Marcus Savings Account?
Marcus is an online bank that offers a high-yield savings account through Wall Street titan Goldman Sachs.
There is no monthly service fee or any minimum deposit requirements, and you can earn the rate on any account balance of up to $1 million. Just remember that FDIC insurance only protects up to $250,000 per depositor, per account type.
Marcus Savings Account Review
The Marcus High Yield Online Savings Account is a great free high-yield savings account. You can open an account with $0 upfront, and there aren't any minimum balance requirements to avoid fees or pay interest.
If you want to have a checking and savings account at the same bank, other options may be a better fit. Many popular banks have checking accounts, but Marcus doesn't.
no monthly service fee
3.90%
$0
- Competitive APY
- Easy-to-use mobile app
- No required initial deposit or minimum account balance
- No monthly service fee
- Can make same-day transfers of up to $100,000 to/from banks
- No digital check deposit
- No physical branch locations
- Maximum balance limit of $1 million
- No fees and no minimum deposit
- Link other bank accounts for incoming and outgoing transfers
- US-based contact center open 7 days a week
- FDIC insured
Marcus Savings Account Key Features and Benefits
Current Marcus Savings Rate and How It Compares
The Marcus High Yield Online Savings Account pays a competitive 3.90% APY, which is significantly higher than the average savings account interest rate.
Marcus offers a savings account rate that's similar to other online national brands, like Ally and Discover. That said, smaller financial institutions have 5% interest on savings accounts.
Marcus Savings Account Monthly Maintenance Fees
You'll like Marcus if you're looking to avoid monthly service fees. The Marcus High Yield Online Savings Account has no monthly service fee and no minimum balance requirements to earn interest.
Marcus Savings Account Online and Mobile Banking Access
Marcus has a solid mobile app with 4.9 out of 5 stars in the Apple store based on 200,000 customer ratings, and 4.4 out of 5 stars in the Google Play store based on nearly 12,000 customer reviews.
Marcus Savings Account Customer Service and Support
You can speak with a representative by phone or through live chat 24/7. The live chat feature is only available through the web, though.
We also use Better Business Bureau ratings and overall ethics of a company to determine our overall bank product rating. The BBB gave Marcus by Goldman Sachs an A+ rating. A strong BBB score indicates a company responds effectively to customer complaints, is transparent about company practices, and is honest in its advertising. Marcus hasn't had any public scandals.
Opening a Marcus Savings Account
Marcus Savings Account Eligibility Requirements
You're eligible to get the Marcus High Yield Online Savings Account if you're at least 18 years old live in the United States.
Step-by-Step Guide to Opening a Marcus Savings Account
The Marcus High Yield Online Savings Account can be opened online, but not at any physical locations. You can get an individual or joint bank account.
When you're opening an account, the bank must verify your identity. You'll need to provide your date of birth, Social Security number, or taxpayer identification number.
Marcus Savings Initial Deposit Requirements
While the Marcus High Yield Online Savings Account has a $0 minimum opening deposit, you'll still need to add money to the account within the first 60 days or it may be closed.
To deposit money into a Marcus High Yield Online Savings Account, you can transfer funds from an external bank account, make a direct deposit, or send a check by mail.
The Marcus High Yield Online Savings Account has maximum deposit limits. You can only maintain up to $1 million in a savings account.
Managing Your Marcus Savings Account
Tips for Maximizing Savings at Marcus
Interest on the Marcus High Yield Online Savings Account is compounded daily. Other savings accounts might compound interest monthly or quarterly, so this Marcus can be beneficial for growing your savings.
If you want to calculate your potential earnings on a savings account, use a compound interest calculator. However, bear in mind that the Marcus High Yield Online Savings Account has a variable interest rate. When a savings account has a variable interest rate, the APY can fluctuate at any time.
If you don't need immediate access to your money, you might prefer a Marcus CD over the Marcus High Yield Online Savings Account. Marcus CD rates are mostly fixed, so you'll be able to get the same rate for the entire term length. The one exception is the Marcus Bump-Up CD, which takes things up a notch and lets you request a one-time rate increase if Marcus CD rates rise while your account is open.
Understanding Marcus Fees and Charges
The Marcus Deposit Account Agreement doesn't list any fees. Marcus also doesn't limit the number of free withdrawals you can make from a savings account.
At other banks, you might be limited to six free withdrawal per month, and then you'll have to pay a fee for each transaction that surpasses the free limit.
Marcus Savings Rates Pros and Cons
Marcus Savings Rates Pros
- Competitive APY
- Interest compounds daily
- Zero fees
- $0 minimum deposit
- Same-day online transfers of $100,000 or less to/from external accounts
- 24/7 customer service
- User-friendly mobile app
Marcus Savings Rates Cons
- Doesn't come with a debit or ATM card, and there isn't a checking account
- Doesn't offer mobile check deposit
- No physical branch locations
- Maximum account balance of $1 million
Is the Marcus Savings Account Right for You?
The best high-yield savings accounts have competitive rates and low fees, and Marcus is no exception: You can earn a 3.90% APY and pay zero fees, allowing you to keep more money in your pocket. There are no opening deposits or minimum balance requirements, so the account is ideal for new savers. At the same time, flexible same-day transfer limits could be a plus if your banking needs involve transferring up to $100,000 at a time to and from other banks.
Still, consider looking elsewhere if you prefer higher returns (some online banks are paying up to 6.17% APY right now), an ATM card, or the convenience of mobile check deposit.
Marcus Savings Account Alternatives
Marcus Online Savings vs. Ally Savings
With a 3.80% APY, the Ally Savings Account pays slightly less than the Marcus savings account. But the difference is so small that choosing an Ally savings account might only mean earning a few dollars less per year, depending on your account balance.
Interest compounds daily on both accounts, and there are no monthly bank maintenance fees, minimum deposit requirements, or excess transaction fees (some banks charge a per-transaction fee of about $10 if you make more than six withdrawals per month). You can access your funds at either bank via ACH transfer, wire transfer, telephone transfer, and check requests, and customer service is available 24/7.
One notable difference is that Marcus doesn't offer mobile check deposits. With Ally, you can deposit checks using the bank's mobile app and your smartphone's camera or by scanning and uploading your checks through online banking — with a limit of $50,000 per day or $250,000 every 30 calendar days (a generous limit compared to many competitors).
Both banks offer some of the best CD rates, but only Ally offers checking accounts and money market accounts.
Ultimately, you can't go wrong with either bank if earning a competitive APY is your primary concern. However, if you want mobile check deposit or the option to have more account types under one roof, Ally is the clear winner.
Marcus Online Savings vs. Synchrony High-Yield Savings
Marcus and Synchrony savings rates and fees are similar. The Synchrony High Yield Savings Account pays a 4.00% APY. Interest compounds daily on both accounts, and neither has monthly service fees, excess transaction fees, or minimum deposits to open an account.
Where the two banks differ is how you manage the account. The Synchrony account comes with an ATM card (a perk not offered by many savings accounts) and robust mobile banking tools, including mobile check deposits. Marcus doesn't offer an ATM card or mobile check deposit, so you have to transfer funds to an external bank account to withdraw cash.
You may prefer Marcus if you want flexible transfer limits. Otherwise, Synchrony comes out ahead with a slightly higher APY and more ways to access your cash.
Why You Should Trust Us: How We Reviewed Marcus Online Savings
We rated the Marcus Online Savings Account using Business Insider's bank account methodology, using a scale of one to five stars. We consider minimum deposits, monthly service fees, interest rates, customer support, mobile apps, miscellaneous features, and ethics, and security for savings accounts.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Marcus Savings Account FAQs
Marcus offers a high-yield savings account, traditional CDs, bump-up CDs, and a no-penalty CD. Marcus does not offer a money market account.
No. The Marcus savings account does not have any associated fees.
Marcus by Goldman Sachs offers a savings interest rate that's more competitive than average. There are some smaller financial institutions with even higher savings rates right now, but Marcus is still competitive with other popular online banks like Ally or Discover.
Anyone over the age of 18 who lives in the U.S. is eligible to open a Marcus savings account.
To maximize your savings with a Marcus account, think about your timeline, goal, and accessibility needs to see if a Marcus high-yield savings account or CD is a better fit.
