Just about anyone can have an account at Goldman Sachs?
Richard Drew/AP Goldman Sachs revamped its retail banking service to become “Marcus by Goldman Sachs,” with online offerings for just about anyone to use.
One element of Marcus is a high-yield savings account, with 1.50% annual percentage yield and no transaction fees or minimum account balance. While interest rates for many savings accounts have fallen, Goldman Sachs is betting on high yields for its digital program.
Goldman Sachs might conjure images of men in suits making money, but now anybody can earn extra dough through the investment bank. Marcus – named after the Goldman Sachs founder Marcus Goldman – allows any adult (except in Maryland, where Marcus is not yet available) to create a savings account.
The big selling point for Marcus is the 1.5% annual percentage yield offered. Whereas interest rates for many banks plummeted to as low as 0.01%, Goldman Sachs’ savings accounts create significant interest.
There is also no minimum amount needed to open an account with Marcus and a deposited of even $1 allows users to earn the 1.5% APY. Keeping with the high growth, no-cost model, Marcus does not charge any fees on savings accounts, including for money transfer.
Along with savings accounts, Marcus offers personal loans of up to $40,000 with no fees and high-yield certificates of deposit. There are some limitations to Marcus, however.
The accounts are not connected to any ATM system and it does not have a mobile app.
Savers can make only six transfers or withdrawals a month. Even with its restrictions, Marcus made Nerd Wallet’s list of best savings accounts of 2018 and one of Magnify Money’s lists of best online savings accounts.
Andrew Williams, the managing director of corporate communications at Goldman Sachs, told Business Insider that customers preferred Marcus because the savings accounts were a “very competitive offering, especially when looking at most other banks.”
In its most recent 10-K filing, Goldman Sachs said it had $13.8 billion in Marcus deposits as of December, and increase of over $3 billion in the past year.