CD Review Bank: Goldman Sachs Bank USA Brand: Marcus Last updated: 2026-06-27

Marcus by Goldman Sachs CDs Review (2026) — Honest Take from an Independent Advisor

Quick take: Marcus runs one of the cleanest online-bank CD ladders in the country — competitive APYs from 4.00% to 4.75%, $500 minimum, no monthly fees, and FDIC backing through Goldman Sachs Bank USA. Great product for liquid short-term cash. For money you can lock for 5+ years, a Multi-Year Guaranteed Annuity (MYGA) usually pays more and defers the tax bill — that's the gap most CD shoppers don't realize they're leaving on the table.

Safety Profile · Marcus by Goldman Sachs (Goldman Sachs Bank USA)

FDIC Insurance

$250K / depositor

Moody's (Bank)

S&P (Bank)

BBB+

Fitch (Bank)

How to read this: Marcus deposits are insured by the FDIC up to $250,000 per depositor, per ownership category. Beyond that, your protection rests on the credit quality of Goldman Sachs Bank USA itself. Moody's A1 / Fitch A means the bank is investment-grade with low default risk. If you hold more than $250K, split across banks or use joint/POD titling to stack FDIC coverage.

Hans is independently licensed and is NOT affiliated with Marcus, Goldman Sachs, or any bank. CD information below is sourced from Marcus's public rate pages and FDIC filings as of June 2026 and rotates frequently — confirm current rates at marcus.com before deciding.

Current Marcus CD Rates (June 2026)

Term	APY	$100K Earnings at Maturity	Notes
6 months	~4.50%	~$2,225	High Yield CD
1 year	~4.75%	~$4,750	Sweet spot of the curve
18 months	~4.60%	~$6,925	—
2 years	~4.40%	~$8,995	—
3 years	~4.10%	~$12,810	—
5 years	~4.00%	~$21,665	Best MYGA comp = ~5.50%
No-Penalty CD (11mo)	~4.10%	~$3,755	Withdraw full balance after 7 days, no penalty

Minimum deposit: $500 across all CD types. Funding: ACH from any external bank, wire, or check. Compounding: Daily.

What we like

FDIC backed — full $250K coverage per depositor, no asterisks
Low $500 minimum — won't lock out smaller savers
No fees — no monthly maintenance, no opening fee, no funding fee
No-Penalty CD option — rare among big-name banks; withdraw the full balance after 7 days with zero penalty if rates spike
Clean online UX — opening takes ~10 minutes, mobile app is straightforward
Strong parent — Goldman Sachs is one of the most-capitalized US banks; unlikely failure scenario

What we don't

5-year rate trails MYGAs by ~150 bps — Marcus 5yr at ~4.00% vs best 5yr MYGAs at ~5.50%. On $250K that's ~$18,750 more from the MYGA over 5 years
CDs taxed annually on accrued interest — even if you don't withdraw, you owe 1099-INT taxes every year. MYGAs are tax-deferred until withdrawal
No bump-up CD — Marcus doesn't offer a "raise your rate" option like Ally; you're stuck if rates rise
No IRA CDs — you can't open a Marcus CD inside an IRA. If your retirement money is the question, this isn't the answer
10% early-withdrawal penalty applies to IRA CDs at other banks pre-59½ — separate from the bank's own penalty. CDs aren't penalty-free even when they say "no penalty"
Auto-renew default — if you miss the 10-day grace window after maturity, you're locked into a new term at whatever rate Marcus is paying that day

Who Marcus CDs are best for

Liquid savers with a 1–3 year horizon who want FDIC peace of mind and a small premium over high-yield savings
Anyone parking under $250K in a single account who values simplicity over yield optimization
People who want a No-Penalty CD as a slightly-better-than-HYSA alternative
Savers who are not in a high tax bracket (annual CD interest is taxed at ordinary income rates — painful for 32%+ federal bracket retirees)

CDs vs MYGAs — when MYGAs beat them

This is the section most CD shoppers skip. A Multi-Year Guaranteed Annuity (MYGA) is the insurance industry's version of a CD — same idea (lock a rate for X years), different chassis (insurance contract, not bank deposit). Two big differences matter:

1. The rate gap. As of June 2026:

Vehicle	5-Year Rate	$250K Growth (5yr)
Marcus 5-Year CD	~4.00%	~$54,160
Top 5-Year MYGA	~5.50%	~$72,910
MYGA advantage	+1.50%	+$18,750

2. Tax deferral. CDs throw a 1099-INT every January whether you take the interest or not — you pay tax now on money you haven't touched. MYGAs defer all gains until withdrawal, so the interest compounds on pre-tax dollars. For a buyer in the 32% federal bracket, that tax-deferral effect adds the equivalent of another ~15–20% boost to your real after-tax yield over 5 years.

Trade-offs are real: MYGAs have surrender charges (typically 7–9% in year 1 dropping to 0% at maturity), no FDIC (state-guaranty-association coverage instead — usually $250K–$300K depending on state), and 10% IRS penalty on gains pre-59½ if non-qualified. For money you genuinely won't touch for 5+ years and are okay holding to maturity, MYGAs win on a risk-adjusted basis.

See: 5-Year MYGA — Peace of Mind Review

Bottom line

Marcus is the Honda Civic of CDs: well-built, no surprises, gets you where you need to go. For an emergency-fund-adjacent bucket of cash you might need within 12–36 months, the 1-year 4.75% APY is genuinely one of the best on the market and the $500 minimum keeps it accessible. The No-Penalty CD is a smart hedge if you think rates might climb.

But if you're a 55+ saver looking at 5+ year money, this is the wrong vehicle. A 5-year MYGA from a top A-rated carrier currently pays ~5.50% vs Marcus's ~4.00%, and that ~$18,750 difference on $250K compounds further once you factor in CDs being taxed annually while MYGAs defer. For long-term, set-and-forget retirement cash, MYGAs are objectively better risk-adjusted — and you can still keep your short-term cash at Marcus. They're complements, not competitors.

About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers + every major online bank. Phone: 213-414-2808. Email: hans@goldsteinco.net.

🧮 Goldstein Complexity Index — Marcus CDs

The more complex a product, the worse it scores. Complexity is where buyers get burned. CDs are about as simple as financial products get — which is why they score so well here.

This product's score: 10/100 — Grade A+ (Extremely Simple)

One number to compare (APY). One risk to understand (early withdrawal penalty). One protection to verify (FDIC $250K). That's the whole product. You can explain a CD to a 12-year-old in 30 seconds — which is exactly why we don't grade it harshly.

Score breakdown

Dimension	Score (1–10)	What this measures
Riders	0/10	CDs have no riders. There is nothing to add, nothing to opt into, nothing to pay extra for.
Crediting strategies	1/10	One fixed APY for the entire term. No caps, participation rates, spreads, or indices.
Surrender complexity	2/10	Early withdrawal penalty = N days of simple interest. Trivial to compute. No MVA, no bonus recapture.
Benefit-base separation	0/10	Account value IS the value. No separate "benefit base" or "income value" lurking elsewhere.
Bonus structure	0/10	No bonus. No vesting. No recapture. The rate you see is the rate you get.

How to read this

A+/A (0–40): You can understand what you bought. CDs, MYGAs, SPIAs. Low risk of mis-selling.
B (41–60): Read the contract carefully and get a second opinion.
C (61–80): Many buyers don't fully understand what they own.
D (81–100): Demands an independent second opinion before signing.

Why this matters: Simplicity is a feature, not a flaw. The Marcus CD is fully audit-able — you can verify in 30 seconds that you're getting what was promised. The complexity tradeoff goes the other way: that simplicity costs you ~150 bps of yield vs a MYGA, because the bank doesn't need a complex structure to make money on you.

Explain it like I'm 12 — how a CD actually works

A Certificate of Deposit (CD) is a piggy bank with a contract. You hand the bank money, and they promise to pay you a guaranteed interest rate for a fixed period — say, 1 year at 4.75%. In exchange, you agree not to touch the money until the year is up. If you do, the bank takes back some of the interest as a penalty.

The math:
- Put $10,000 into a Marcus 1-year CD at 4.75% APY
- After 1 year, you have $10,475 ($475 interest)
- Withdraw early at month 6: bank keeps 270 days of simple interest = roughly $350 forfeited
- Hold to maturity: full $10,475 plus a 10-day grace period to decide what's next

The "fees" are non-existent:
- No monthly fee, no funding fee, no maintenance fee
- The bank makes money by lending your deposit out at ~6–8% and paying you ~4.75%
- Your only "cost" is the opportunity cost if rates go up and you're stuck

The safety net:
- FDIC insures up to $250,000 per depositor per bank — federally backed, never failed to pay
- If Goldman Sachs Bank USA went under, you'd get your money back within days

Marcus CD FAQ

What is APY and how is it different from interest rate?

APY (Annual Percentage Yield) includes compounding; interest rate does not. Marcus quotes APY on every CD page. On a 1-year CD at 4.75% APY, you earn $4,750 on $100K at maturity. APY is the right number to compare across banks.

How much does FDIC insure?

FDIC insures up to $250,000 per depositor, per insured bank, per ownership category. Marcus is a brand of Goldman Sachs Bank USA — one FDIC certificate. If you have $500K, split between two banks for full coverage or use joint/POD accounts to stack coverage.

What's the early withdrawal penalty on a Marcus CD?

Standard Marcus CDs: 90 days simple interest (terms under 12 months), 270 days (12 to 60 months). Their No-Penalty CD lets you withdraw the full balance after 7 days with zero penalty — but the rate is lower than the standard High Yield CD.

IRA CD vs taxable CD — what's the difference?

Marcus does not currently offer IRA CDs. For tax-deferred CD-like growth inside a retirement account, you'd need a brokered CD inside a Schwab/Fidelity IRA — or a MYGA, which is tax-deferred by default. CDs held in taxable accounts trigger annual 1099-INT regardless of whether you withdraw.

Brokered CD vs bank CD — which is better?

Bank CDs (like Marcus) pay simple/compound interest, FDIC-insured, easy to open. Brokered CDs trade on a secondary market — you can sell early without penalty but at market price (could be a loss). Brokered often pay slightly higher headline rates. Marcus is bank-direct, no brokerage required.

Does Marcus offer a bump-up CD?

No — Marcus does not currently offer a bump-up or raise-your-rate CD. Their lineup is: High Yield CD (standard), No-Penalty CD, and Rate Bump CD on select promo terms. If you want a true "bump" option, look at Ally Raise Your Rate or Synchrony Bump-Up.

What happens when my Marcus CD matures?

Marcus auto-renews to the same term at the then-current rate unless you act during a 10-day grace period. During grace you can withdraw, change term, or add funds. If you do nothing and rates dropped, you're locked at the new lower rate for another full term. Set a calendar reminder.

What if CD rates drop right after I lock in?

Marcus has no rate-lock guarantee like Ally's 10-day Best Rate. If rates drop after you lock, you're fine — you keep your higher rate. If rates rise after you lock, you're stuck unless you eat the early-withdrawal penalty. This is why MYGAs (which lock 5–10 yr rates with similar APYs but tax deferral) are worth comparing for long-term money.

📩 MYGA vs CD comparison — get my independent take before locking in

Talk to a licensed independent expert. Hans.

Before you lock a 5-year CD, see what the top-shelf MYGAs are actually paying right now and whether tax-deferral helps your situation. Independent, no carrier loyalty, no quotas.

Drop your info — within 24 hours, you'll get a side-by-side written comparison of the Marcus CD you're considering vs. the top 3 MYGAs available to you, plus a no-pressure 15-minute call if you want one.

📞 Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

This review reflects publicly available Marcus rate sheets and FDIC filings as of the date stated above. CD APYs change frequently — sometimes weekly. Always confirm current rates at marcus.com before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific bank or insurance product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; Hans is not a bank employee, not affiliated with Marcus or Goldman Sachs, and receives no compensation from any bank for this review. Comparisons between CDs and MYGAs reflect representative top-of-market rates as of June 2026 and are illustrative — your individual rate, tax situation, and suitability will vary. Always read the actual CD disclosure or annuity contract and consult a licensed advisor before purchasing. FDIC coverage is subject to current FDIC rules and the $250,000 per-depositor, per-bank, per-ownership-category limit. State guaranty association coverage on annuities varies by state. Tax treatment is subject to change.