Haris Ashley
Marcus by Goldman Sachs is a legitimate financial institution that is FDIC-insured. FDIC insurance is the standard deposit insurance offered at most traditional banks for things like checking and savings accounts. The FDIC was created by the federal government after a wave of bank failures during the Great Depression in the 1930s. It operates as an independent federal agency to protect checking and savings accounts, some money market accounts, and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. For example, single-owner Marcus savings accounts are insured up to $250,000, while joint accounts are insured separately, with up to $250,000 per owner.
| Characteristics | Values |
|---|---|
| Is Marcus federally insured? | Yes, Marcus is a legitimate financial institution and is FDIC-insured. |
| Who is the provider of Marcus savings accounts? | Goldman Sachs Bank USA |
| Is Goldman Sachs Bank USA an FDIC member? | Yes |
| What is the maximum insured amount? | $250,000 for all individually-owned accounts combined, $250,000 per owner for jointly-owned accounts, and $250,000 per beneficiary for accounts with payable-on-death (POD) designations. |
| Is there a limit to the number of withdrawals or transfers from the Online Savings Account? | No |
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What You'll Learn
Marcus by Goldman Sachs is FDIC-insured
Marcus by Goldman Sachs is a legitimate financial institution that is FDIC-insured. FDIC insurance is the standard deposit insurance offered at most traditional banks for things like checking and savings accounts. The Federal Deposit Insurance Corporation (FDIC) was created by the federal government after a wave of bank failures during the Great Depression in the 1930s. It operates as an independent federal agency to protect checking and savings accounts, some money market accounts, and certificates of deposit.
Goldman Sachs Bank USA is an FDIC member, which means that funds deposited in Marcus savings accounts are insured up to the maximum allowed by law, which is currently $250,000 for all individually-owned accounts combined, $250,000 per owner for jointly-owned accounts, and $250,000 per beneficiary for accounts with payable-on-death (POD) designations. This means that if you have a joint account with one or more people, such as your spouse, each person is covered up to the $250,000 limit. So, for example, if you and your spouse are co-owners of a CD worth $450,000, your assets in that account are fully insured.
If an FDIC-insured bank fails, the FDIC will either provide you with a new account, with the same balance up to the $250,000 limit, at another insured bank, or issue a check to each account holder for the insured balance of their account at that bank. FDIC coverage may also extend to certain retirement accounts, including some IRAs and self-directed defined contribution plans, where you can choose how the money is invested. It's important to note that if you have multiple retirement accounts at the same bank, they are all added together for insurance purposes.
Marcus by Goldman Sachs is an online-only bank that offers a high-yield savings account and certificates of deposit (CDs). It does not offer a checking account or money market account, and it does not provide a debit card for its savings account or CDs. Marcus ranked third in overall customer satisfaction for online savings providers in the J.D. Power 2025 U.S. Direct Banking Satisfaction Study.
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FDIC insurance covers up to $250,000 per depositor
Marcus by Goldman Sachs is a legitimate financial institution that is FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) was created by the federal government to protect checking and savings accounts, some money market accounts, and certificates of deposit in the event of bank failure. FDIC insurance is the standard deposit insurance offered by most traditional banks.
The standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. This means that funds deposited in Marcus savings accounts, including Online Savings Accounts and CD accounts, are insured up to $250,000 for all individually-owned accounts combined. This also applies to jointly-owned accounts, where each co-owner is insured separately up to $250,000 per owner, and accounts with payable-on-death (POD) designations, which are insured up to $250,000 per beneficiary.
For example, if you and your spouse jointly own a CD worth $450,000, your assets in that account are fully insured. Each of you is covered up to the $250,000 limit, so your combined deposits of $450,000 are fully protected. This coverage also applies to certain retirement accounts, including some IRAs and self-directed defined contribution plans.
It is important to note that FDIC insurance covers deposits according to ownership type and account category. Customers are not required to apply for or request coverage, but understanding how deposit coverage works and your deposit insurance limits is crucial to ensuring your funds are fully protected.
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FDIC insurance covers checking and savings accounts
The FDIC covers deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit. It's important to note that FDIC insurance does not cover investment options such as stocks, bonds, mutual funds, or life insurance policies. However, U.S. Treasury bills, bonds, or notes are not insured by the FDIC, but they are backed by the full faith and credit of the federal government.
Marcus savings accounts are provided by Goldman Sachs Bank USA, which is an FDIC member. This means that funds deposited in Marcus Online Savings Accounts and CD accounts are insured up to $250,000 for all individually-owned accounts combined, $250,000 per owner for jointly owned accounts, and $250,000 per beneficiary for accounts with payable-on-death (POD) designations. It's important to note that Marcus does not support opening a trust or custodial account.
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SIPC insurance covers brokerage accounts
Marcus by Goldman Sachs savings accounts are FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) is a federal agency that protects checking and savings accounts, some money market accounts, and certificates of deposit. FDIC insurance covers up to $250,000 per depositor, per insured bank, for each account ownership category.
While Marcus savings accounts are FDIC-insured, it's important to understand the difference between FDIC and SIPC insurance. SIPC stands for Securities Investor Protection Corporation, a non-profit corporation created by Congress 50 years ago. SIPC insurance covers assets and cash in a brokerage account up to a certain limit. Specifically, SIPC protects customer assets when a SIPC-member brokerage firm fails financially.
SIPC steps in when a brokerage firm fails financially, and assets are missing from customer accounts. It protects the securities and cash in your brokerage account up to $500,000, including up to $250,000 for cash in your account to buy securities. SIPC protection is only available if your brokerage firm fails and SIPC steps in, and you must file a claim to receive protection.
SIPC protects stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds, and certain other investments as "securities." It's important to note that cash held in connection with a commodities trade is not protected by SIPC. Additionally, SIPC does not protect commodity futures contracts (unless held in a special portfolio margining account), foreign exchange trades, investment contracts (such as limited partnerships), and fixed annuity contracts that are not registered with the U.S.
In summary, SIPC insurance provides coverage for assets and cash in brokerage accounts, while FDIC insurance covers checking and savings accounts at banks. Marcus by Goldman Sachs savings accounts are FDIC-insured, offering protection of up to $250,000 per depositor, per insured bank, and per account ownership category.
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FDIC insurance covers certain retirement accounts
Marcus by Goldman Sachs savings accounts are FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) covers certain retirement accounts, including some IRAs and self-directed defined contribution plans. FDIC insurance covers checking and savings accounts, some money market accounts, and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Retirement accounts that qualify as "Certain Retirement Accounts" are insured by the FDIC. This includes Section 457 deferred compensation plan accounts, such as eligible plans provided by state and local governments, regardless of whether the plan is self-directed. Self-directed plans allow participants to choose how their money is invested, including the ability to direct deposits to FDIC-insured banks. The FDIC considers a plan self-directed if a participant has the right to choose a particular bank's deposit accounts as an option.
The FDIC does not insure all retirement plans. Defined benefit plans, 403(b) plans, and 401(k) plans are not covered under the Certain Retirement Accounts category. However, certain types of deposits held within these plans may be eligible for FDIC coverage. For example, if a 401(k) plan is 50% invested in stock funds, 25% in bond funds, and 25% in a money market account at an FDIC-insured bank, the money in the money market account is covered, but the rest is not.
It is important to note that FDIC coverage for retirement accounts is limited to $250,000 per depositor. If an individual has multiple retirement accounts at the same bank, the FDIC will aggregate the balances and insure up to the $250,000 limit. Listing beneficiaries on IRAs does not increase the coverage limit. However, in the case of a decedent's IRA, the FDIC will continue to insure the account for up to $250,000.
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Frequently asked questions
Yes, Marcus is a legitimate financial institution. It is an FDIC-insured financial institution. FDIC insurance is the standard deposit insurance offered at most traditional banks for things like checking and savings accounts. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC insurance covers up to $250,000 for all individually-owned accounts combined, $250,000 per owner for jointly-owned accounts, and $250,000 per beneficiary for accounts with payable-on-death (POD) designations.
If an FDIC-insured bank fails, the FDIC will either provide you with a new account, with the same balance up to the $250,000 limit, at another insured bank, or issue a check to each account holder for the insured balance of their account at that bank.
