Jeffrey Wade
Marcus by Goldman Sachs is an online-only bank that offers a high-yield savings account and certificates of deposit (CDs). While the bank does not offer checking accounts, money market accounts, or debit cards, it provides competitive rates and no monthly fees, making it a popular choice for savers. One of the key concerns for customers considering Marcus CDs is whether their money will be insured. The Federal Deposit Insurance Corporation (FDIC) insures Marcus CDs, which is standard for most banks. The FDIC covers up to $250,000 per depositor, per insured bank, per ownership category, including individual and joint accounts.
| Characteristics | Values |
|---|---|
| Insurer | Federal Deposit Insurance Corporation (FDIC) |
| Insured Amount | $250,000 per depositor, per FDIC-insured bank, per ownership category |
| Account Types | Online Savings Accounts and CDs |
| Account Owner Limit | $3,000,000 across all deposit accounts |
| Online-Only Bank | Yes |
| Minimum Opening Deposit | $500 |
| Maximum Balance | $1,000,000 per account |
| Beneficiaries | Up to 6 beneficiaries per account |
| Beneficiary Insurance | $250,000 per beneficiary, up to $1,250,000 per account owner if more than 5 beneficiaries are named |
| APY | 3.65% to 4.25% |
| No-Penalty CDs APY | 3.90% to 4.00% |
| Rate Bump CD APY | 3.90% |
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What You'll Learn
Marcus CDs are FDIC-insured up to $250,000 per depositor
Marcus by Goldman Sachs offers high-yield CDs with low minimum opening deposits. The minimum deposit to open a Marcus CD account is $500, which is lower than the typical $1,000 minimum deposit required by most banks. Marcus CDs are FDIC-insured, meaning that the money you deposit is insured by the Federal Deposit Insurance Corporation, up to a standard maximum of $250,000 per depositor, per FDIC-insured bank, and per ownership category. This means that if you have multiple accounts at Marcus, FDIC insurance will only apply to your deposit accounts, including savings and CD accounts.
The FDIC is an independent federal agency established in 1933 to protect customer deposits at member financial institutions in the event of bank failure. FDIC insurance coverage is provided automatically when you open a deposit account at a member bank, and there is no need to apply or request coverage. However, it is important to understand how your deposit coverage works and how to maximise your coverage. For example, the FDIC provides an online tool called the Electronic Deposit Insurance Estimator (EDIE), which can help you calculate your actual FDIC coverage.
Additionally, FDIC insurance limits apply per ownership category. For example, if you have multiple single-owner accounts, the combined balance across all your single-ownership accounts at Goldman Sachs Bank USA must not exceed $250,000 to be fully insured. Similarly, for jointly-owned accounts, the FDIC assigns the account balance equally among all joint owners, with a maximum insurance coverage of $250,000 per owner. Furthermore, Goldman Sachs Bank USA allows customers to designate up to six beneficiaries per account, with a maximum insurance coverage of $1,250,000. Each unique beneficiary will be insured up to $250,000, as long as they have an equal interest in the depositor's accounts.
Overall, Marcus CDs are a good option for those looking for high-yield savings accounts and CDs, with competitive rates, no monthly fees, and the security of FDIC insurance.
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The Federal Deposit Insurance Corporation (FDIC) was established in 1933
Since its creation, the FDIC has been an essential part of the American financial system. In the 1920s and early 1930s, a rise in bank failures created a national crisis, wiping out many Americans' savings. Since FDIC insurance began in 1934, no depositor has lost insured funds due to bank failure. The FDIC insures deposits at financial institutions according to ownership categories, with a standard coverage maximum of $250,000 per depositor, per FDIC-insured bank, and per ownership category.
Marcus by Goldman Sachs offers CDs that are FDIC-insured. Goldman Sachs Bank USA, which provides Marcus deposit accounts, is a member of the FDIC. This means that funds deposited in Marcus savings accounts and CDs are eligible for insurance coverage based on eligibility maximums determined by the FDIC. Marcus CD rates tend to be competitive, and they offer high-yield CDs with low minimums.
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FDIC insurance does not cover investment options
FDIC insurance covers deposits received at insured banks, but it does not cover investment products, even if they were purchased at an insured bank. FDIC deposit insurance only covers deposits, and only if your bank is FDIC-insured.
FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, but it does not cover non-deposit investment products, even those offered by FDIC-insured banks. The FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. All deposits in the same ownership category in the same FDIC-insured bank are added together for the purpose of determining FDIC deposit insurance coverage.
You may qualify for more than $250,000 in FDIC deposit insurance coverage if you deposit money in accounts that are in different ownership categories. For example, if you have a single ownership account at an FDIC-insured bank and a joint ownership account with one or more people at the same bank, you will be insured for up to $250,000 for your single ownership account deposits and also insured separately for your ownership interest up to $250,000 for all of your joint ownership account deposits.
The contents of a safe deposit box are also not insured by the FDIC. However, other insurance may be available. It is important to read the contract signed with the bank when renting the safe deposit box to find out if some other type of insurance is provided.
Marcus by Goldman Sachs offers high-yield CDs that have low minimums. Money in Marcus' CDs is insured by the Federal Deposit Insurance Corporation, which has a standard coverage maximum of $250,000 for individual accounts.
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Marcus CDs have a minimum opening deposit of $500
Marcus by Goldman Sachs offers a variety of savings accounts and CDs. The minimum deposit to open a Marcus CD account is $500. This is a relatively low minimum opening deposit compared to other banks, which typically require at least $1,000 for an initial deposit.
Marcus CDs are FDIC-insured, meaning that your money is protected by the Federal Deposit Insurance Corporation up to a standard coverage maximum of $250,000 for individual accounts. This insurance is provided because Marcus deposit accounts are provided by Goldman Sachs Bank USA, which is a member of the FDIC. This means that your money is eligible for insurance coverage based on eligibility maximums determined by the FDIC.
The FDIC is an independent federal agency established in 1933 to protect customer deposits at member financial institutions in the event of a bank failure. The FDIC insures your money in deposit accounts such as savings, CDs, checking, money market, and retirement accounts. It's important to note that FDIC insurance is applied per FDIC-insured bank and per ownership category, so the limits will apply to any other deposit products you may have at Goldman Sachs Bank USA or other FDIC-insured banks.
Marcus CDs offer competitive rates and a variety of terms ranging from six months to six years. They also provide the option of a no-penalty CD, which does not charge an early withdrawal penalty, and a bump-up CD, which allows you to raise the rate once during the CD term if the bank has raised rates on new Rate Bump CDs. With a minimum opening deposit of $500, Marcus CDs can be a good choice for those looking for competitive rates and flexibility in their savings options.
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Marcus CDs have no monthly fees
Marcus by Goldman Sachs offers high-yield CDs with a minimum opening deposit of $500, no monthly fees, and competitive rates. The bank also provides no-penalty CDs and bump-up CDs, which are uncommon types of CDs with extra perks.
The Federal Deposit Insurance Corporation (FDIC) insures money deposited in Marcus CDs, up to a maximum of $250,000 for individual accounts. FDIC insurance is applied per insured bank and per ownership category, with a maximum of $1,250,000 eligible for insurance across all beneficiaries.
For example, Maria has $250,000 deposited across three Marcus Savings and CD accounts, which she solely owns. As long as her combined balance across all single-ownership accounts at Goldman Sachs Bank USA does not exceed $250,000, her deposits will be fully insured.
Additionally, Marcus offers a Rate Bump CD, allowing customers to raise the rate once during the CD term if the bank increases rates on new Rate Bump CDs. The bank also provides a 10-day CD rate guarantee, ensuring that customers receive a higher rate if their selected CD term rate increases within 10 days of opening the account.
With no monthly fees, competitive rates, and a variety of CD options, Marcus by Goldman Sachs is a solid choice for savers looking for attractive rates and flexible terms.
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Frequently asked questions
Yes, Marcus CDs are insured by the Federal Deposit Insurance Corporation (FDIC).
The FDIC is an independent federal agency established in 1933 to protect customer deposits at member financial institutions in the event of a bank failure.
The FDIC insures up to $250,000 per depositor, per insured bank, per ownership category.
No, FDIC insurance applies to deposit accounts only and does not apply to credit cards or investment options such as stocks, bonds, mutual funds, or life insurance policies.
Marcus CDs are provided by Goldman Sachs Bank USA, which is an FDIC member. You can check if your specific account is insured by using the Electronic Deposit Insurance Estimator (EDIE) on the FDIC website.
