Small Rate Hike on Online Savings Account at Goldman Sachs Bank USA

This morning, Goldman Sachs Bank USA (now operating under the brand Marcus by Goldman Sachs) increased the rate of its Online Savings Account by 5 bps to 1.85% APY.

Like past rate hikes, this new rate doesn’t make the savings account a rate leader, but it does keep the savings account on the high end for the large internet banks, and it should put pressure on the other large internet banks.

CD rates remained the same today at Goldman Sachs Bank USA. On July 24th, the Bank increased rates on three of its CDs. Please refer to our Goldman Sachs Bank USA CD rate table for rates and other details.

This rate hike moves Goldman Sachs Bank USA to be tied with the savings and money market accounts at several large internet banks including CIT Bank, Synchrony Bank, Barclays and FNBO Direct. You can see below how the High-yield Online Savings Account recent rate history compares to the other large internet banks.

• Aug 9: Goldman Sachs Bank USA High-yield Savings: 1.85% APY
• Aug 3: Ally Bank Online Savings: 1.80% APY
• Aug 2: FNBO Direct Online Savings: 1.85% APY
• Aug 1: Barclays Online Savings: 1.85% APY
• July 24: Synchrony High Yield Savings: 1.85% APY
• July 18: HSBC Direct Savings: 1.80% APY
• July 10: Capital One 360 Money Market: 1.75% APY, $10k+
• July 9: Citizens Access Online Savings: 2.00% APY, $5k+
• July 6: Discover Bank Online Savings: 1.75% APY
• July 2: Sallie Mae Bank Money Market: 1.90% APY
• June 29: Ally Bank Online Savings: 1.75% APY
• June 27: Barclays Online Savings: 1.75% APY
• June 25: CIBC Agility Savings: 1.90% APY
• June 22: Goldman Sachs Bank USA High-yield Savings: 1.80% APY
• June 22: American Express National Bank High Yield Savings: 1.75% APY
• June 15: Discover Bank Online Savings: 1.65% APY
• June 13: Federal Reserve Target Funds Rate: 1.75% to 2.00%
• June 11: FNBO Direct Online Savings: 1.75% APY
• June 5: Synchrony High Yield Savings: 1.75% APY
• May 30: PurePoint Financial Online Savings: 1.90% APY, $10k+
• May 25: Sallie Mae Bank Money Market: 1.75% APY
• May 24: CIT Bank Money Market: 1.85% APY

Unlike today’s rate hike, Goldman Sachs Bank USA’s June 22nd rate hike was a little more aggressive with the rate surpassing most of its competitors. 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.

The Bank has more details on the online chat service in its FAQs. Here’s an excerpt:

Our Chat function allows you to communicate directly with a Savings Specialist. The Chat button appears when you are logged in to Marcus.com and only when Savings Specialists are available to chat with you. The hours for Chat are the same as our telephone hours – Monday to Friday, 8 am - 12 am E.T.

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 1.85% 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
• Funds received by ACH transfer initiated at Marcus available on the third business day. Funds received by ACH transfer initiated by another bank available on the next business day (see FAQs for full details)

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 and custodial accounts are not offered
• No charge for sending or receiving wire transfers

Availability

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.

Bank Overview

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 (March 31, 2018), the bank has $172 billion in assets and $124 billion in deposits. The bank has an overall health rating of “A+” on DepositAccounts.com, with a Texas Ratio of 1.37% (excellent), based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $9.34 billion, an excellent annual growth rate of 15.44%. Please refer to our financial overview of Goldman Sachs Bank USA (FDIC Certificate # 33124) for more details.

How the Online Savings Account Compares

When compared to the 212 Savings Accounts and 181 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, four savings accounts and two money market accounts have higher rates. These numbers are the same as when I posted on the Goldman Sachs Bank USA Online Savings Account in June.

To review the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table.

The above rates are accurate as of 8/9/2018.