Let's dive deep into the secrets of online savings accounts offered by Goldman Sachs Bank. In this video, I will reveal some of the essential features of the high yield account provided by the big bank. The High-Interest Savings Account from Marcus Bank is one of the best online savings accounts that are offered by top online banks. It has competitive interest rates on CDs (Certificates Of Deposit), its mobile application is easy to use, and the website is well designed.
The very first topic is fees. Goldman Sachs is not charging transaction fees for transfers to or from Marcus Savings Account.
However, keep in mind that there is a Regulation D, that limits the number of withdrawal transactions. Marcus Savings Account is not an exception from this rule.
There is an additional outgoing transfer limit of $125k per transfer.
In the same way, as in other banks, your deposits are FDIC insured up to $250k per customer. It means that if you have two high-interest saving accounts - insurance covers the combined balance.
If one of those savings accounts has $200k, and another one has $200k, then you have $400k, and only $250k of them are FDIC insured.
The interest rates on savings are competitive. As of today, they are on par with High Yield Savings from American Express. There are better rates on the market, but they all tend to go down over time. In the long run, all banks will lower rates because they will be not profitable in this case.
APY at Goldman Sachs significantly outperforms rates in savings accounts at brick and mortar banks like Chase, Citibank, Wells Fargo, and Bank Of America.
Yet another pro of this Savings Account is that there are no minimum balances like in other banks. Where minimum to waive fees can go up to $2500.
For example, if you deposit $10k to the High Yield Savings Account with the APY 1.7% after one year, it will earn you $170. The national average for savings accounts will earn you $36.
Goldman Sachs does not offer debit cards or ATM cards for the Marcus Savings Accounts. The only way to withdraw money is to transfer them to another bank.
Interest in the savings account calculated daily and posted monthly. So, in the end, you will download form 1099 and will have to pay taxes.
At the same time, Marcus by Goldman Sachs also offers 11-Months No-Penalty CD with 1.9% APY. It is way better than rates on CDs at Ally bank. Ally offers 1.65% on CDs below $5k.
The rates offered by Marcus are better than American Express (0.55%).
APY tends to fluctuate, but the ratio will most probably be the same.
The minimum deposit for the CDs in Goldman Sachs is $500. Alliant Credit Union has a minimum of $1000 and claims that it is low. On the other hand, some banks have a minimum as little as $1.
I am not sure that is important, maybe some people will try to make a CD ladder of $100 deposits.
When you open No-Penalty CDs, you can withdraw money after seven days. It is a great opportunity. You can fix the rate, but if it goes up - you can exchange it to a better one.
Some banks have penalties for traditional CDs in case of early withdrawals. For example, for CDs with terms less than 12 months, your penalty will be 90 days of interest.
I hope this video will help you to make a better decision on where to put your money.
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