What a Marcus savings account does

A Marcus savings account is a bank account where you deposit money and earn interest on the balance you hold. Marcus (the online savings division of Goldman Sachs) does not charge monthly fees, does not require a minimum deposit to open, and does not lock your money away. You can withdraw what you deposited at any time, though federal rules limit you to six withdrawals per month from a savings account.

The main reason people open a Marcus account is the interest rate. Because Marcus operates online only and has no physical branches, it pays higher interest rates than most brick-and-mortar banks. The rate changes over time as the Federal Reserve adjusts its benchmark rate, so what you earn today may differ from what you earn in six months.

Marcus also offers money market accounts and certificates of deposit (CDs), which work differently and pay different rates. This guide focuses on the standard savings account.

Key Takeaways

  • You can open a Marcus savings account online in minutes with no minimum deposit, and you pay no monthly maintenance fees.
  • Interest accrues daily on your balance and is deposited into your account each month, so your balance grows automatically.
  • You can withdraw money at any time, but federal rules cap withdrawals from savings accounts at six per month.
  • Your deposits are insured up to $250,000 by the FDIC, the same protection that covers traditional bank accounts.
  • The interest rate Marcus pays changes when the Federal Reserve changes rates, so your earnings will fluctuate.

How interest is calculated and paid

Marcus calculates interest daily on your account balance and pays it to you monthly. This means if you have $10,000 in the account, Marcus figures out what one day's worth of interest is, applies that rate every single day, and then deposits the total interest earned that month back into your account on a set date each month.

The interest rate Marcus offers varies. As of the time this guide was written, rates were in the range of 4% to 5% annually, but this changes frequently based on what the Federal Reserve does. When the Fed raises rates, Marcus typically raises its rate within days. When the Fed cuts rates, Marcus cuts its rate as well. You can check the current rate on Marcus's website before you open an account.

Because interest compounds monthly (meaning you earn interest on your interest), your balance grows faster than if you straightforward left the money untouched. Over time, this compounds into real money. A $10,000 deposit earning 4.5% annually would grow to roughly $10,450 after one year, assuming you made no additional deposits or withdrawals.

How to deposit and withdraw money

You can move money into and out of your Marcus account through electronic transfer. When you open the account, Marcus will ask you to link a bank account you already own. You then initiate transfers from that linked account to Marcus, or from Marcus back to that account. Transfers typically take one to two business days to complete.

You can also set up direct deposit, so your paycheck goes straight into Marcus instead of your primary checking account. This is useful if you want to move money to savings automatically without having to remember to transfer it yourself.

Withdrawals are not limited by dollar amount, but federal rules cap the number of withdrawals you can make from a savings account to six per month. If you exceed six, Marcus may charge a fee or convert your account to a different type. This rule exists because savings accounts are meant to encourage saving, not frequent spending. If you need to withdraw money more than six times a month, a checking account (which has no withdrawal limit) may be a better fit.

FDIC insurance and account safety

Your deposits in a Marcus savings account are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. This means if Marcus fails or goes out of business, the FDIC will reimburse you for your balance, up to that limit. This protection is the same one that covers traditional bank accounts, so your money is as safe in Marcus as it is in any other bank.

If you have more than $250,000 to save, you can open multiple accounts at different banks, and each account gets its own $250,000 of FDIC coverage. For example, you could have $250,000 in a Marcus savings account and another $250,000 in a Marcus money market account, and both would be fully insured.

Marcus uses encryption and multi-factor authentication to protect your login credentials. You control access to your account through a username and password, and Marcus can send you a code via text or email each time you log in from a new device.

When a Marcus account makes sense for your money

A Marcus savings account works well if you have money you do not plan to spend in the next few months and want it to earn interest without taking on investment risk. Because the interest rate is higher than most traditional banks, your money grows faster. There is no penalty for withdrawing early, so you are not locked in.

A Marcus account is less useful if you need to access your money very frequently (more than six times per month), because you will hit the withdrawal limit. It is also less useful if you need a debit card or the ability to write checks, because Marcus does not offer either. If you need those features, a checking account at a traditional bank is a better choice.

Some people use Marcus as a "high-yield savings" account for an emergency fund, because the money is safe, earns interest, and can be withdrawn quickly if needed. Others use it as a holding place for money they are saving toward a specific goal, like a vacation or a down payment on a car.

How Marcus compares to other savings options

Online banks like Ally, American Express Personal Savings, and Discover also offer high-yield savings accounts with rates similar to Marcus. The main differences are usually small: one bank might pay 4.75% while another pays 4.50%, or one might have a slightly faster transfer process. Shop around before you decide, because even a 0.25% difference adds up over time on large balances.

Traditional brick-and-mortar banks (Chase, Bank of America, Wells Fargo) typically pay much lower interest rates, often under 0.5% annually. You pay for the convenience of physical branches and ATMs with lower returns on your savings.

Money market accounts and CDs are different products. A money market account is similar to a savings account but may offer a slightly higher rate in exchange for a higher minimum balance. A CD locks your money away for a set period (three months, one year, five years) in exchange for a may provide rate. If you withdraw early from a CD, you pay a penalty. Choose a CD only if you are certain you will not need the money during the lock-up period.

What happens to your account if rates change

When the Federal Reserve raises or lowers interest rates, Marcus adjusts its rate to match. You do not have to do anything—your rate straightforward changes on the date Marcus announces the change. Your existing balance continues to earn interest at the new rate going forward.

If rates fall, your earnings will decrease. If rates rise, your earnings will increase. This is one reason some people use a Marcus account for short-term savings goals rather than long-term wealth building. Over a long period, rate changes average out, but in the short term, a falling rate environment means your money grows more slowly.

You can check your current rate and your year-to-date interest earnings anytime by logging into your Marcus account online.

Frequently Asked Questions

Can I have multiple Marcus savings accounts?

Yes. You can open as many Marcus savings accounts as you want. Some people open separate accounts for different savings goals—one for an emergency fund, one for a vacation, one for a car down payment. Each account earns interest independently, and each is insured separately up to $250,000 by the FDIC.

What if I need to withdraw money more than six times a month?

Federal rules limit savings account withdrawals to six per month. If you exceed this limit, Marcus may charge a fee per excess withdrawal or convert your account to a money market account. If you regularly need frequent access to your money, consider using a checking account instead, which has no withdrawal limits.

How long does it take to transfer money from Marcus to my bank account?

Transfers typically take one to two business days. Weekends and holidays may add time. Direct deposits from your employer usually arrive within one to two business days as well, depending on your employer's payroll system.

Is my money safe in Marcus if the stock market crashes?

Yes. A savings account is not an investment account, so stock market movements do not affect your balance. Your money is insured by the FDIC regardless of what happens in the markets. The only risk is if Marcus itself fails, but FDIC insurance covers you in that scenario too.

Can I set up automatic transfers into Marcus?

Yes. You can set up recurring transfers from your linked bank account to Marcus on a schedule you choose—weekly, biweekly, or monthly. This is useful for automating your savings so money moves without you having to remember to do it manually.