Marcus By Goldman Sachs Increases Interest Rate For Online Savings Account To 3.50% (February 2023)

We have some good news if you have a savings account with Marcus (or plan to open one). Marcus, a leading online bank, has just announced that it is increasing the annual percentage yield (APY) on its savings accounts. This marks a significant increase from the previous APY of 3.30% and follows the trend of other banks, such as Citi and Bask, that are also increasing the rates they offer savers.

Marcus increased the APY on its high-yield savings account 3.50% APY. This is a very competitive rate — although there are savings accounts with higher APYs, such as Upgrade’s Premier Savings, which is currently at 4.13% APY. However, Marcus’ savings account has no fees, no minimum deposit, and you can receive same-day transfers of $100K or less from other banks.

Marcus increased the APY it pays on certificates of deposit last month, but the latest Fed rate change is yet to move the needle on CD rates. However, the current Marcus CD rates, which range from 3.70% to 4.40% depending on the term of the CD, are still very competitive.

The increase in Marcus’ APYs for savings accounts and CDs is a positive development for consumers looking to grow their savings. While it is always important to carefully compare the APYs offered by different banks and credit unions before making a decision, Marcus’ new rate of 3.50% APY is competitive and may be a good option for those looking to maximize the return on their savings.

But how does Marcus decide on its APY, and what factors are at play? One of the most influential factors is the Federal Reserve’s target interest rate, also known as the federal funds rate. This rate, which is set by the Federal Reserve (the central bank of the United States), serves as a benchmark for the interest rates that banks charge on loans and pay on deposits.

When the Federal Reserve raises its target interest rate, it becomes more expensive for banks to borrow money. As a result, banks may increase the interest rates they charge on loans in order to cover their costs. For instance, Marcus by Goldman has also recently increased the APRs it offers on personal loans.

This can also impact the interest rates that banks pay on deposits, like savings accounts. When the Federal Reserve raises its target interest rate, banks may also increase the interest rates they pay on deposits in order to attract more money from consumers. Conversely, when the Federal Reserve lowers its target interest rate, banks may reduce the interest rates they pay on deposits in order to reduce their own borrowing costs.

In recent years, the Federal Reserve has kept its target interest rate at a low level in order to support economic growth. This has meant that the interest rates offered on savings accounts have generally been low as well. However, with the economy now on a more solid footing, the Federal Reserve has begun to slowly increase its target interest rate. As a result, we are seeing some banks, like Marcus, starting to increase the APY on their deposit accounts.

Marcus is a consumer banking and lending platform offered by Goldman Sachs, a leading investment bank and financial services company. The platform was launched in 2016 and offers a range of financial products and services for individuals, including high-yield savings accounts, personal loans, and certificates of deposit (CDs).

One of the main features of Marcus by Goldman Sachs is its high-yield savings account, which offers a competitive interest rate and no fees. Customers can open and manage their accounts online or through the Marcus by Goldman Sachs mobile app. In addition to savings accounts, Marcus by Goldman Sachs also offers personal loans at competitive rates and terms. Customers can apply for loans online and receive a decision within minutes.

Overall, Marcus by Goldman Sachs aims to provide customers with a simple, transparent, and convenient banking experience. The platform is designed to be user-friendly and offer competitive rates and fees for its financial products.

.