Goldman Sachs Bank USA Hikes Online Savings Account to 1.60% APY


Deal Summary: Rate increase on the Online Savings Account (1.60% APY)

Availability: Nationwide

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.

1.60%-$1mGoldman Sachs Bank USAHigh-yield Online Savings Account
Rates as of April 19, 2018.

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.

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 (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, 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 RateAccount NameCredit Union/Bank
2.00% APYExclusive Savings - New Account Rate (no min)Popular Direct
1.85% APYeOne Savings - New Money Only (no min)Salem Five Direct
1.80% APYDollar Savings Account (no min)DollarSavingsDirect
1.60% APYOnline Savings Account (no min)Goldman Sachs Bank USA

The above rates are accurate as of 4/9/2018.

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

Related Pages: savings accounts, nationwide deals, Internet banks

WheelinDealin   |     |   Comment #1
Their website still stinks.
DCGuy   |     |   Comment #2
The website is rather spartan. You cannot send them an online message and can only communicate with them by phone.
Reader   |     |   Comment #3
Very predictable move after Amex raised its savings rate to 1.55%. Ally will soon match the Amex rate and no higher.
RJM   |     |   Comment #4
I'm doing my part to the extent I can. Complaining does not help. Enough people moving enough money can make a difference.

That said, the move to my last 2 online banks has come with ISSUES.

All American wont let me move over $5000 because their manager is on a vacation or something.
Popular wont let me add a second transfer in account or change it for 60 days. They wont let me mail a check, Its pitifully frustrating. I cant wait until someone matches the 2% because I will be out of there. (Or at least 99.5% of my money will)
#5 - This comment has been removed for violating our comment policy.
Sperry8   |     |   Comment #6
I find these rate rises quite lacking. Vanguard's Prime Money Market has a 1.76% yield and has risen substantially over the past few months. Plus there are a few online banks offering 1.85% and higher (Salem Five and Popular Direct). Quite easy to get more than this low # at Marcus.
anonymous   |     |   Comment #7
I've also been following the Vanguard Prime Money Market rate. After fees, it tracks pretty close to 3-month T-bill rates. So one has to wonder why only a few banks care to keep their deposit rates up with what is essentially the prevailing 3-month no-risk interest rate. Perhaps most banks don't have the need for deposit growth, or perhaps savers in general don't demand a high enough rate for their deposits?
DCGuy   |     |   Comment #9
Banks do not operate like Money Market mutual funds. The Funds have a constantly maturing pool of securities with changing interest rates that the Funds manages and pays out the dividends based on the holdings at any given time. The rates of these holdings control if the dividends go up or down. Banks do not have to go with the current interest trends (see now how many really big banks still paying nothing even though the Fed has raised rates). To be competitive, banks will modify their rates to compete with other banks, but they have no requirement to do so. It is up to the management to assess the bank's cash flow needs along with the rates being used for loans and other operations (such as credit cards).
I am following the municipal Money Market rates (which have approached 1.4%). If it comes very close to the prime MM rate (and passes the high tier bank deposit rates), then I am going to divert a big part to that sector.
anonymous   |     |   Comment #12
DCGuy, I completely agree that MMMFs and banks operate very differently and so their rates are not necessarily alike. Thanks for explaining the difference well.

Even though banks do not have to offer any specific rate of interest, you would expect that market conditions would force them to raise their rate, for example because the fed funds rate is the overnight interbank lending rate which is now effectively 1.69% ... so borrowing money from other banks (or from the Fed at the discount rate) makes less sense and they'd have to increase deposit rates. At the same time, banks probably (?) have been raising credit card and other short term loan rates, so they are not under pressure to keep deposit rates low to make a profit.

All this would especially apply to internet banks, because the only real way to differentiate themselves and attract customers is with competitive rates. Brick and mortar banks, on the other hand, can increase their deposits by opening another branch and hoping that someone randomly walks in and opens their 0.01% savings account.
rzelman   |     |   Comment #8
I use Vanguard Prime as my mother account and have recently pulled funds into it from all of my linked bank accounts yielding less than 1.6%. Anyone thinking of doing the same should take into account that although you can link any MM, C or SA to Vanguard (and not vice versa), they do take an inexplicably long time to allow you to move funds after the micro deposit confirmation. It can take up to 10 business days before they allow you to do so, a ridiculous delay compared to other institution which allow immediate transfers. Their hold times are also inordinately long.
DCGuy   |     |   Comment #10
From what I read in the prospectus, Vanguard does not allow ACH debit transactions against the account balance. So you cannot set up a quasi-bill payment system through them by setting up automatic debits through another merchant account (such as a credit card account). DWS allows you to initiate ACH debit transactions (at least $50 each) directly against the Money Fund account balance. You do not have to set up a sweep account to do ACH debits as you would have to do with online brokerage firms.
rzelman   |     |   Comment #11
I suspect that as was the case previously seen in a rising rate environment, MM funds will yield significantly more than savings accounts albeit at a slightly higher risk.
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Availability: Nationwide

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Availability: Nationwide

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Availability: Nationwide

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Availability: Nationwide

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