Goldman Sachs Bank USA (now operating under the brand Marcus by Goldman Sachs) has recently launched a savings account promotion. You can receive a $100 bonus when you deposit $10k or more in new money into a new or existing Online Savings Account within 10 days of enrollment, and maintain those funds and your current balance for 90 days. Enrollment must be done by either using the enrollment links at this Marcus promotion page or by calling Marcus at 1-855-730-SAVE by 11:59 PM EST on 3/18/19.
It’s nice to see that existing customers can qualify. Ally Bank did the same thing with its Payback promotion last year, but as we learned during the Ally promotion, it’s important for existing customers to understand the details of the rules regarding new money and balance changes during the time when the deposited new money must be maintained. The following is an excerpt from the small print at the Marcus promotion page that explains the details:
To qualify for the $100 bonus, you first need to enroll in the offer. Then, you need to deposit $10,000 or more in new funds (internal transfers won’t count) into a Marcus Online Savings Account within 10 days from enrollment and maintain at least $10,000 of those funds in your account plus your account balance at the time of enrollment for 90 consecutive days from the date of reaching the required dollar amount. Multiple deposits are allowed to reach the required dollar amount and can be made by joint owners for a joint account.
Existing customers should note that it’s your “account balance at the time of enrollment” that will be used to determine if you maintained the required funds for the 90 days. That’s important if you were planning to use the money in the savings account for a CD at another bank or for some other purpose.
Thanks to DA reader, RickZ, for posting on this promotion in the DA Forum.
Online Savings Account Overview
It’s common for banks to offer bonuses on accounts that you will probably not want for the long run. That’s not the case for this one. The Online Savings Account has a history of competitive rates. You can review the rate history of the Account by clicking the “details” arrow of the following table:
In addition to a history of competitive rates, the Online Savings Account has features that do make it a strong contender for one’s primary online savings account. A summary of the important features of the Online Savings Account is listed below:
- No minimum deposit
- Rate applies to all balances of $1 or more (currently 2.25% 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 Goldman Sachs Bank 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)
- 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.
To be eligible for the $100 bonus, you must enroll for this offer at this Marcus promotion page or by calling Marcus at 1-855-730-SAVE by 11:59 PM EST on 3/18/19.
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 2017, 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 14th largest bank in the nation based on assets. As of the latest FDIC data (December 31, 2018), the bank has $192 billion in assets and $138 billion in deposits. The bank has an overall health rating of “A+” on DepositAccounts.com, with a Texas Ratio of 1.54% (excellent), based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $20.46 billion, an excellent annual growth rate of 31.98%. Please refer to our financial overview of Goldman Sachs Bank USA (FDIC Certificate # 33124) for more details.
Value of the Online Savings Account Bonus
Assuming that the Online Savings Account rate remains at 2.25% APY for the next three months, a $10k balance will earn about $56 of interest. When you add the $100 bonus, the total earnings will be about $156. Without a bonus, an account would have to have a yield of 6.24% to earn that much interest in three months.
If you’re are playing it safe and you add some extra time at the start and the end of the 90-day requirement period so that the total time of maintaining a $10k balance is four months, the total interest earned would be about $75, and the total earnings would be $175. The equivalent yield to earn that much interest on a $10k balance for four months is 5.25%.
Instead of participating in this promotion, if you had deposited $10k into PurePoint Financial’s 13-month No-Penalty CD which currently has a 2.60% APY, you would earn a total of about $87 in four months. That’s $88 less than you would earn in this promotion.
In summary, this Marcus promotion is a good deal, but you’ll have to decide if the bonus amount is enough to make it worthwhile.
Be sure to check out our full list of the best savings and checking account bonus offers.