Experience with Marcus Bank (no penalty CDs)?

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FrugalInvestor
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Experience with Marcus Bank (no penalty CDs)?

Post by FrugalInvestor »

I'm considering purchasing some Marcus Bank no penalty CDs for holding short-term cash. They're FDIC insured, the rates are quite a bit better than high-yield savings, rates are set for the term of the CD and it appears that by purchasing multiple CDs I could have access to smaller lumps of cash over time.

Is anyone using Marcus Bank and, if so, what has your experience been with them? Do they have a user friendly and efficient online system, particularly for purchasing and redeeming CDs through a linked checking account? What is phone assistance like if needed? Other feedback?
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rich126
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by rich126 »

Timely question. Last week I opened my first account with Marcus (Goldman Sachs) and funded a small 12 month CD (1.85%) with money from my taxable account. It went smoothly. I'm trying to link another account and move more money into it since treasuries aren't paying anything. Fidelity and TD Ameritrade both allow you to buy CDs at no cost, but the rates are much lower so I'm going more direct with Marcus.

Marcus gives you a few ways to link accounts. One way is manually (my recommendation) and one is "instantly". The instant way seems like a questionable (although not uncommon) way in terms of security. They use an intermediary firm where you enter your bank info (the source of your funds) and I avoid doing that (some tools like Mint do a similar thing, i think). Many banks, financial institutional, etc. specifically state they aren't liable if you give your credentials to a 3rd party. Probably never enforced but I prefer to avoid doing that and the manual linking isn't difficult.

Also I think they will auto roll your CDs, so if you don't want that, you need to cancel that prior to maturity date.

Maybe someone can explain how you can buy CDs with 401K rollover money. I haven't seen an easy way to do that.
02nz
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by 02nz »

Marcus is excellent in my experience. I've only used them since the pandemic and phone hold times are long (at least 20-30 minutes), but that's probably true of most banks right now. Here Ally has an advantage in giving estimated phone hold times right on the app.

See this thread for more: viewtopic.php?f=1&t=310346
highercall
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by highercall »

I too just opened a Marcus account since the pandemic. Opened a savings and 7 month no penalty CD. Went smoothly, did everything online with no human help. Set up linked account with Vanguard and local bank. Took a few days but everything went well.
02nz
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by 02nz »

I wrote this in the other thread but worth noting here re: their regular CDs: With Marcus you can lock the rate of the CD by depositing $500, but then you still have 30 days from the day you opened the CD to deposit additional money into the same CD. Have to call in for this though. Ally doesn't do this and I don't know of any other banks that do. Anyway it's a nice feature as rates are on the decrease.
drk
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by drk »

I've used Marcus since it was GS Bank and felt comfortable saying that it didn't plan to offer an app. My experience has been excellent throughout, including the high-yield savings account and two No-Penalty CDs. Their ACH transfers are on par with Schwab's (read: fast and predictable). When I closed a No-Penalty CD before maturity, I had the cash in my checking account one day later.

Editing to add: its web UI and mobile app are great. They work, but they also look good and feel intuitive.
Last edited by drk on Mon Apr 20, 2020 8:49 pm, edited 1 time in total.
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eye.surgeon
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by eye.surgeon »

I just moved my EF and some money for taxes to the tune of about $200k into a few no penalty CDs at Marcus. I've used their phone support before also. They're good. Their website isn't as slick as Ally but I like the fact that there is a top tier brick and mortar bank behind the Marcus virtual storefront. I couldn't find better rates to easily park some money for a while. They start paying interest as soon as you buy the CDs also they don't wait for funds to transfer. With money market rates so low it's a viable option.
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MikeG62
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by MikeG62 »

FrugalInvestor wrote: Mon Apr 20, 2020 11:43 am I'm considering purchasing some Marcus Bank no penalty CDs for holding short-term cash. They're FDIC insured, the rates are quite a bit better than high-yield savings, rates are set for the term of the CD and it appears that by purchasing multiple CDs I could have access to smaller lumps of cash over time.

Is anyone using Marcus Bank and, if so, what has your experience been with them? Do they have a user friendly and efficient online system, particularly for purchasing and redeeming CDs through a linked checking account? What is phone assistance like if needed? Other feedback?
I have been doing business with Marcus since the summer of 2019. Very smooth process and very efficient. I especially like the fact that you start earning interest on the date you initiate the funds transfer (pull from the Marcus site) and not when the funds land in your account. AFAIK, they are the only bank that does this (most certainly the only one I have a relationship with).
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arnik83
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by arnik83 »

I recently opened a Marcus account and a no-penalty CD as well. it was smooth.

Since your question was with respect to no-penalty CDs, I was comparing Ally and Marcus.
One difference I found was with Marcus you get all their No-penalty CD rates & durations with just $500.
While at Ally the rate on the no penalty CD has 3 tiers and highest rate is only for amounts $25K+ and lowest rate you can get for 5K minimum.

I thought this was nice advantage with Marcus.
You can simply add more no-penalty CDs as and when you get say few thousands or more at their highest available rate and also add to it in the following 30 days as others mentioned.

After coming from Discover Savings, I find Marcus website/app pretty bare bone. But I guess I am fine with that as long as rates are good and transfers are fast.
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FrugalInvestor
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by FrugalInvestor »

Thank you for the prompt and informative replies.

I ended up purchasing a number of no penalty CDs with the proceeds from a recent property sale. I found it a bit odd that they term every CD a separate "account" so you open your account and then purchase separate CD accounts under that. The set-up and then funding of the CD accounts is a 2-step process as well, but it works fine.

Once I got used to their system and terminology I found it to be efficient. I also utilized their phone support to ask process questions and then to straighten out a mistake that I made and found the reps to be very knowledgeable and responsive. The hold times were fairly long ranging from 5 to 10 minutes.

Thanks again.
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carminered2019
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by carminered2019 »

Marcus needs to improve their web site. Took like 8 tries last week to set up a CD for my mom and finally got in. How do you guys fund the account, is their an option to link to a bank ?
HomeStretch
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by HomeStretch »

vipertom1970 wrote: Sun Apr 26, 2020 8:02 am ... How do you guys fund the account, is their an option to link to a bank ?
I have a Marcus savings account that is linked to my bank account. I used the savings account to fund the CDs. I could not establish a link between Vanguard and my Marcus CD accounts. The link process required trial deposits and Vanguard would not create the link as trial deposits could not be withdrawn from a CD.
Blue456
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by Blue456 »

FrugalInvestor wrote: Mon Apr 20, 2020 11:43 am
Do they have a user friendly and efficient online system, particularly for purchasing and redeeming CDs through a linked checking account? What is phone assistance like if needed? Other feedback?
I didn't like their online service. I was dissatisfied with website frequently having loading errors and "technical difficulties." Same goes for phone service, I had to wait 20-30 minutes to talk to representative. There was no option that I know of to have them call me back. Long story short I closed my account with them shortly after opening. I had issue with that too and took two phone calls to close the account.

I have shared account with my wife with Ally. Never had any of these issue. For my own personal savings I opened Capital One savings. I can't comment for their phone service yet but website never has any issues.
HomeStretch wrote: Sun Apr 26, 2020 8:10 am I have a Marcus savings account that is linked to my bank account. I used the savings account to fund the CDs. I could not establish a link between Vanguard and my Marcus CD accounts. The link process required trial deposits and Vanguard would not create the link as trial deposits could not be withdrawn from a CD.
And I thought I was the only one! Merrill Edge couldn't link Marcus. They asked me to fax them a form with letter from Marcus.
student
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by student »

I have been using Marcus for many months. They are fine. When they offer a bonus, they have a bar that you can track your progress.
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dbc47
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by dbc47 »

One thing I don't see is an option to open an account in the name of a Revocable Trust which my wife and I have. I guess that leaves us out? I guess I could just open an account in my name only but that might cause some legal problems down the road perhaps?
cabfranc
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by cabfranc »

We moved most of our savings from Bank of America to Marcus in 2018 and have been happy. I actually don't mind the bare bones website. It serves the purpose for which we need it--an FDIC insured bank account to keep cash where it earns more interest than BoA. I have had some trouble with the website not responding and once had to call because I was concerned I schedule a transfer multiple times due to trying to reload the page. But that was before coronavirus and there was just a short wait and the customer service was helpful.
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FrugalInvestor
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Re: Experience with Marcus Bank (no penalty CDs)?

Post by FrugalInvestor »

dbc47 wrote: Sun Apr 26, 2020 9:00 am One thing I don't see is an option to open an account in the name of a Revocable Trust which my wife and I have. I guess that leaves us out? I guess I could just open an account in my name only but that might cause some legal problems down the road perhaps?
You are correct, they do not offer the option of using a revocable trust either as the primary name or as beneficiary. I decided to go ahead with Marcus since it wouldn't impact my wife or I. My primary interest at this point is the safety of having some FDIC insured funds.
Have a plan, stay the course and simplify. Then ignore the noise!
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