Goldman Sachs Bank USA (now operating under the brand Marcus by Goldman Sachs) increased the rate of its Online Savings Account by 10 bps to 1.60% APY. GS Bank was renamed to Marcus by Goldman Sachs in December.
The new rate doesn’t make the savings account a rate leader, but it does position the savings account on the high end for the large internet banks, and it should put pressure on the other large internet banks to respond to last month’s Fed rate hike.
CD rates remained the same today at Goldman Sachs Bank USA. Two weeks ago, the Bank increased rates on seven of its CDs. Please refer to our Goldman Sachs Bank USA CD rate table for rates and other details.
After the December Fed rate hike, Goldman Sachs Bank USA increased its savings account rate twice within about a month (10 bps on December 28th and 10 bps on January 12th). If the Bank follows the same pattern this time, we may see another 10-bps rate hike in a couple of weeks.
The savings account has remained competitive during its history both under Goldman Sachs Bank USA and under GE Capital Bank before April 2016.
High-Yield Online Savings Account Features
As I mentioned in January, the brand change to Marcus by Goldman Sachs did include some account improvements. One FAQ on the Bank’s website describes the recent changes:
If I have a savings account, what should I expect to change?
What you love about GS Bank won’t change with Marcus. Some improvements we've made include reducing the steps it takes to open a new account, streamlining external account linking and introducing chat servicing to answer your questions. And we still make it a priority to protect your privacy and safeguard your account information.
A summary of the important features unique to the savings account is listed below:
- No minimum deposit
- Rate applies to all balances of $1 or more (currently 1.60% APY)
- Free ACH bank-to-bank transfer service
- Allows links to up to 4 external accounts
- Maximum outgoing transfer is $125K per transaction if done online (no limit if done by phone)
- No incoming transfer limit (as long as the maximum balance limit is maintained)
- ACH Transfers out take 1 to 3 business days
Features Applicable to Both the Savings Account and CDs
One recent improvement applicable to both the Savings Account and CDs is the increased maximum balance. The maximum amount on deposit for all of your individual and joint deposit accounts combined may not exceed $1 million per Account owner. That maximum used to be $250k.
Below is a summary of the important features.
- Maximum balance of $1 million for individuals (new customers)
- You may add up to six beneficiaries to each account.
- A beneficiary must be an individual; you may not name a trust or other entity as a beneficiary
- Social security numbers for beneficiaries required
- Trust accounts are not offered
- No charge for sending or receiving wire transfers
Goldman Sachs Bank USA operates the internet bank under the brand Marcus by Goldman Sachs. Savings Accounts and CDs are available nationwide and can be opened using the Bank’s online application. Account owners must be at least 18 years old and must be a U.S. citizen or legal resident.
In April 2016, Goldman Sachs Bank USA completed the acquisition of the internet bank portion of GE Capital Bank. That’s when the brand name GS Bank was established. The brand name Marcus by Goldman Sachs was established in October 2016 as an online platform offering unsecured personal loans to consumers. As I described in November, Goldman Sachs decided to consolidate savings accounts, CDs and personal loans under the brand Marcus by Goldman Sachs. All loans and deposit products are provided by Goldman Sachs Bank USA.
Goldman Sachs Bank USA is the 15th largest bank in the nation based on assets. As of the latest FDIC data (December 31, 2017), the Bank has $165 billion in assets and $116 billion in deposits. The Bank has an overall health rating of “A” on DepositAccounts.com, with a Texas Ratio of 1.22% (excellent), based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $1.5 billion, an above average annual growth rate of 2.39%. Please refer to our financial overview of Goldman Sachs Bank USA (FDIC Certificate # 33124) for more details.
How the Online Savings Account Compares
For similar minimum balance requirements and maximum balance limitations, eight internet savings accounts and three money market accounts have rates higher than the Goldman Sachs Bank USA Online Savings Account.
|Interest Rate||Account Name||Credit Union/Bank|
|2.00% APY||Exclusive Savings - New Account Rate (no min)||Popular Direct|
|1.85% APY||eOne Savings - New Money Only (no min)||Salem Five Direct|
|1.80% APY||Dollar Savings Account (no min)||DollarSavingsDirect|
|1.60% APY||Online Savings Account (no min)||Goldman Sachs Bank USA|
The above rates are accurate as of 4/9/2018.