Marcus by Goldman Sachs offers 10 certificates of deposit (CD) terms, ranging from six months to 72 months. The bank’s CD rates tend to be competitive among online banks. A $500 minimum deposit is required to open a CD.
Here’s an overview of Marcus by Goldman Sachs’ CD rates. Rates are accurate as of May 3, 2024.
Overview of Marcus by Goldman Sachs CDs
Marcus by Goldman Sachs requires a $500 minimum to open a CD. Account holders have up to 30 days from CD opening to fund the CD fully. After that, you can’t add more funds to the account.
Interest earned on a Marcus CD is automatically added to the CD’s principal balance each month. You can opt to withdraw any earned interest, penalty-free, and transfer it to a Marcus savings account or linked external bank account. Keep in mind that withdrawing interest earned during the term lowers the overall amount you earn on your CD.
Marcus’ CDs automatically renew after the maturity date unless you contact the bank and choose another option. Customers have a 10-day grace period after the CD matures to withdraw funds from the CD or close the CD and open a new one with a different term.
Like most banks, Marcus charges a penalty if you withdraw funds before your CD reaches maturity. Depending on the CD term, you could end up paying an early withdrawal penalty of up to 365 days of simple interest.
Marcus also offers a Marcus No-Penalty CD, which allows you to withdraw your full balance starting seven days after you fund the CD. No-penalty CDs come in three terms: seven months (at 4.70% APY), 11 months (4.70% APY) and 13 months (4.70% APY).
How Much Can You Earn With Marcus’ CD Rates?
Opening a CD allows you to use funds you don’t need access to right away to earn interest. The amount you can earn on a Marcus CD depends on the CD term you choose and your account balance.
You can use our CD calculator to figure out how much you’d earn with a Marcus CD:
How Marcus by Goldman Sachs CDs Compare
Marcus CDs are competitive when compared to the best CD rates, especially on CD terms longer than 12 months. Opening a CD with Marcus requires a lower minimum deposit than many of the other top banks.
As is typical of most online banks, Marcus CD rates are also well above national averages according to the FDIC, which range from 0.22% for a one-month CD to 1.81% for a one-year CD as of April 15, 2024.
To get the best rate possible, compare CD rates at several banks and credit unions. You want the highest possible return on your investment.
About Marcus
Marcus by Goldman Sachs is the consumer banking division of Goldman Sachs. Named for one of the founders of the investment bank (Marcus Goldman), Marcus is an online bank offering only a few specific banking products. Offerings include a high-yield savings account, high-yield CDs, no-penalty CDs and fixed-rate, no-fee personal loans. It also provides investment products. Goldman Sachs launched Marcus in 2016.
Frequently Asked Questions (FAQs)
What is a CD?
A certificate of deposit, or CD, is a type of time deposit savings account that typically rewards you with competitive interest rates in exchange for leaving funds untouched in the account for an agreed-upon time, called a CD term.
How does a CD work?
When you open a CD account, you earn interest, typically at a higher rate than savings accounts, for leaving funds in the account for a specified period. CD terms typically range from one month to five years, although some banks offer longer CD terms up to 10 years. Banks usually don’t charge monthly fees on CDs but charge an early withdrawal penalty if you remove funds before the CD reaches maturity.
Are CDs safe?
Yes, CD accounts held at banks are insured by the FDIC (Federal Deposit Insurance Corporation), meaning the federal government protects your money up to $250,000 per depositor, for each account ownership category, in the event of a bank failure. CDs held at credit unions offer similar protection through the NCUA (National Credit Union Administration).
Do all CDs charge an early withdrawal penalty?
Most standard CDs charge an early withdrawal penalty if you withdraw funds from your CD before it reaches maturity. Some banks, like Marcus, also offer no-penalty CDs that allow you to withdraw funds before the maturity date without penalty.
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