Marcus by Goldman Sachs is an online-only bank offering a wide range of terms on certificates of deposit, with competitive savings rates on par with CNET’s weekly CD averages. While Marcus offers the most term options for its high-yield CDs, it also provides no-penalty and rate bump CDs.
We like that Marcus will automatically boost your CD rate if the bank’s rates rise within 10 days of when you open your CD -- a feature only a few banks, like Ally, also offer. Marcus also has a six-year CD term, while most banks only offer terms as high as five years. But unlike many online banks, you’ll need a minimum of $500 to open a CD. If you’re looking to invest less than this, consider Marcus’s high-yield savings account or a CD without a minimum deposit requirement from another bank.
Here’s a breakdown of Marcus’ CD offerings and how they stack up to the competition.
Marcus CDs: At a glance
|CD type||Minimum deposit||Term||Early withdrawal penalty|
|High-yield||$500||6-month to 6-year||90 to 270 days of interest, depending on the term (the longer the term, the longer the withdrawal penalty)|
|No-penalty||$500||7- to 13-month||None|
|Rate-bump||$500||20-month||180 days of interest|
Marcus CD rates
Currently, the 18-month CD at Marcus offers the bank’s highest rate: 4.85% annual percentage yield. This bank offers a unique CD term -- a six-year CD -- but its 3.70% APY rate isn’t particularly impressive when high-yield savings accounts, treasury bills and money market accounts are offering higher without losing liquidity over a longer time.
Its seven- and 11-month no-penalty CDs -- a type of CD that lets you withdraw your money before the term ends, fee-free -- have low rates. But its 13-month no-penalty option yields a solid 4.35% APY. Lastly, its rate-bump CD -- which lets you bump up your rate one time over the lifetime of your CD -- earns a respectable 4.35% for a 20-month term.
We like that all Marcus CD interest compounds daily, which helps your savings grow a bit faster. Daily compounded interest is higher than interest compounded monthly or quarterly like other CDs due to the more frequent compounding.
Marcus by Goldman Sachs is a member of the Federal Deposit Insurance Corporation, which means that funds deposited in CD accounts are insured up to the maximum allowed by law. This equates to $250,000 for all your individually owned accounts combined and $250,000 per owner for jointly owned accounts.
Marcus high-yield CDs
Marcus no-penalty CDs
Marcus rate-bump CD
How much can you earn with a Marcus CD?
Here’s how much your savings could grow if you invest $1,000 in a Marcus CD.
|CD term||APY||Total interest earned|
|Rate-bump, 20-month||4.35%||$73.55* without any rate increase|
How do Marcus’ CD rates compare?
Marcus by Goldman Sachs offers some of the most rewarding APY rates you can find -- more than three times higher than FDIC’s averages. For example, here are the latest national CD APY rates averages compared with Marcus’ rates, according to the FDIC.
|Marcus by Goldman Sachs||4.85%||5.00%||4.30%||3.80%|
Check out CNET’s guide to the best CD rates to compare rates across other top banks.
What other savings options does Marcus offer?
In addition to its diverse suite of CD options, Marcus offers a high-yield online savings account that earns 4.30% APY. If you want easy access to your funds, a high-yield savings account may be better than a CD, even though you can’t lock in your rate like you can with a CD. Marcus’ savings account has no fees or account minimums to worry about, and unlike a CD, you can add funds at any time to grow your savings.
Should I get a CD from Marcus by Goldman Sachs?
The main draw of a CD is locking in your savings rate. Since Marcus offers some of the best CD rates, if you’re looking to earn a predictable return on your money while rates are high, Marcus is a good option to explore.
However, we recommend taking the time to compare rates in the current high-interest rate environment. You might find rates or other perks that are a better fit for you. If you don’t want to deposit $500 to open an account, you may consider other banks, such as Ally or Synchrony, for a competitive rate with no minimum deposit required.
But if you’re unsure about locking your money away for a period of time, consider a high-yield savings account, money market account or no-penalty CD with a high rate.
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