I’m always testing new companies, platforms, banks, you name it. As of this writing I have a good ten or more blogs I intend to write regarding some of these tests and trials, but I figured that today I’d begin with one of my favorites, Marcus by Goldman Sachs.
Early last year I wrote a blog about interest and my favorite online savings account at the time, Aspiration, which you can find here. Well, as is always the case in life, things change. I still have my Aspiration account of course, and am thankful for the interest I have earned there over the years, but I’ve transferred all of my savings in cash to Marcus by Goldman Sachs, and you can visit their site here.
In comparison to Aspiration’s current 1.0% interest yield, which you also have to carry a minimum $2,500 balance to get, Marcus offers 1.5% interest, and NO minimum balance. Yes, NONE! This is huge. The only small drawback I have seen is that you can’t carry over a $1,000,000 balance with Marcus, but for most reading this that likely won’t be a problem. Using that example, if you actually had $1,000,000 to deposit, you’d receive $15,000 per year in interest payments! Not too shabby! Have a little less than that to deposit up front, as I would imagine you would? Still, 1.5% is one of the largest yields that you will find right now. As interest rates continue to rise, it’s also expected that Marcus will continue to raise their rates, unlike Aspiration who likely won’t be doing so due to their company mission of 10% of earnings to charity, etc… Not that there is anything wrong with that, but if you’re trying to build your nest egg, every little bit of earnings/interest/yields matters.
As we’re slowly nearing the end of the United States stock market’s bull cycle (as I write this my portfolio is soaring, nonetheless!), I’ve been building my cash position to be able to strike when the time is right and there is “blood in the streets,” as they say. Utilizing Marcus and their 1.5% interest has so far proven to be the perfect place to grow my cash position. I will say, I’m not too brand loyal, and if another bank such as Ally, Capital One, or whoever came out and began offering 2.0% interest tomorrow, I’d be willing to give them a chance. Never stop looking into your options, every penny is important! I am a firm believer in spreading your cash and investments around, as you never want to have all of your eggs in one basket for many reasons.
Do you have a different online savings account that you love? Any particular reason? I’d love to hear your recommendations below! Have an amazing day!