Marcus by Goldman Sachs, the no-fuss, all-online platform that offers high-interest savings accounts and CDs with a variety of maturity dates, is now offering savings accounts at 3.75%.
That’s quite a boost, since Marcus recently raised the rate to 3.5%, and was offering 2.75%, then 3%, not that many months ago. Those rates were high at the time.
Why the rise?
“The Federal Reserve raises or lowers the federal funds rate to help maintain a stable US economy,” says Goldman Sachs. “When the Fed raises or lowers its rate, banks tend to increase or decrease the rates they offer on deposit accounts like savings accounts. Goldman Sachs pays close attention to the Federal Reserve and other key developments in the economy. We put our expertise to work to determine the right rates for our customers.”
Marcus is also offering high CD rates: 4.5% for 12 months, and 4.75% for 18 months, which are comparable to some brokered CD rates offered by Fidelity: 4.8% at 18 months. (Unlike bank CDs, brokered CDs are tradable before maturity, like stocks and bonds.)
One key difference between parking your money in a savings account vs. a CD: There’s no penalty when you withdraw from your savings account, but when you cash in a bank CD before maturity, you pay a fee. (The cash-in process is fast, easy and all online.) Marcus’s no-penalty 13-month CDs are currently at $3.85, barely worth the bother unless you consider the following: Savings rates are not locked-in like CD rates.
