Marcus CD Rates: What Goldman Sachs Pays and When It Is Worth It

Take an example saver with $15,000 for a home down payment. She plans to buy in about 18 months and does not want the money in the stock market. A friend says Marcus by Goldman Sachs has good CD rates. Is that true today, and what is the catch?

Today Marcus pays not listed APY on its 18-month CD. APY is the yearly rate, including interest earned on interest. Marcus is a good fit if you want a low $500 minimum and a rate guarantee when you open. It is not always the top rate, so compare it with the best rate for your term first.

What does Marcus pay on its CDs today?

These rates come from our live data and update on their own. Marcus also posts its rates on its own site with an as-of date.

"Not listed" means our latest data has no rate for that term. Marcus also offers 3-, 4-, 5- and 6-year CDs. Check its CD page for those rates.

How does Marcus compare with the best CD rates?

Compare the same term. The best 12-month CD we track pays … APY. Marcus pays not listed APY for 12 months.

For 2 years, the best we track pays … APY. Marcus pays not listed APY.

The gap in dollars is easy to work out. Each 0.10 percentage point on $15,000 is about $15 a year. Some top-paying banks may ask for a larger deposit or offer fewer terms, so check the fine print.

What CD terms does Marcus offer?

Marcus has three kinds of CDs. All three need $500 to open.

• High-Yield CD. Its standard CD. Terms run 6, 9, 12 and 18 months, then 2, 3, 4, 5 and 6 years. The rate is fixed for the term.
• No-Penalty CD. Terms of 7, 11 and 13 months. You can take out the full balance, with no penalty, starting 7 days after you fund it.
• Rate Bump CD. You can ask Marcus to raise your rate if its rate for the same Rate Bump CD term goes up. Marcus tells you how many raises you get when you open it.

Each CD can hold up to $1,000,000. Each customer can keep up to $3,000,000 across all Marcus deposit accounts.

What is the 10-Day CD Rate Guarantee?

Open a Marcus CD and get at least $500 into it within 10 days. If Marcus raises the rate for your term during those 10 days, you get the higher rate automatically. If you fund it after day 10, you get the rate on the day you reach $500.

This helps if rates are rising. It does not protect you if rates fall after you open.

What does it cost to take money out early?

Marcus charges a penalty if you close a High-Yield CD before it ends. The penalty is a set number of days of interest on your original deposit.

The 4.00% is an example, not a Marcus rate. Your penalty uses your own CD's rate.

You cannot take out part of your principal early. It is all or nothing. You can, however, have your interest paid to you each month with no penalty. Marcus figures interest daily and adds it to your CD each month.

What happens when your Marcus CD ends?

Marcus sends a reminder 30 days before the end date. After the CD ends, you get a 10-day grace period. In that window you can withdraw, renew for the same term, or switch to a new term.

If you do nothing, the CD renews for another term. The new rate may be lower. Set your choice ahead of time in your account, so the CD does not renew at a lower rate without you choosing it.

Is your money safe at Marcus?

Yes, up to the FDIC limit. Marcus is a brand of Goldman Sachs. Its deposit products are provided by Goldman Sachs Bank USA, an FDIC-insured bank. The standard limit is $250,000 per depositor, per bank, per ownership category. For example, accounts in your name alone and joint accounts are counted separately.

A Marcus savings account in the same name counts toward the same limit, because it is at the same bank.

When is a Marcus CD worth it?

A Marcus CD makes sense when:

• You have a small amount to start. $500 is lower than some banks ask.
• You might need the money early. The No-Penalty CD lets you leave after 7 days with no penalty.
• Rates may rise soon after you open. The 10-day guarantee and the Rate Bump CD help here.

Look elsewhere when another bank pays clearly more for your exact term. For our example saver, an 18-month CD fits her timeline. She should compare the Marcus 18-month rate with the best rate listed above, then pick the higher one she qualifies for.

For more, see our Ally vs Marcus CD comparison, our Discover vs Marcus CD comparison and our Marcus savings review. For Marcus CD details in one place, see our Marcus CD product page.