We compound interest daily and you’ll see it credited to your Marcus high-yield Certificate of Deposit (CD) monthly. The more frequently interest is compounded, the more interest you can earn. Use the CD calculator to see how much interest you can earn with a Marcus CD.
What is APY?
Annual Percentage Yield – aka APY – is how much interest (shown as a percentage) you can expect to earn in a year if you leave your money right where it is (i.e., no withdrawals). CD rates differ from one institution to the next, so you can use our CD calculator to input your CD deposit and CD term. It’ll then calculate, based on the APY, how much interest you can earn on your Marcus high-yield CD.
You have 30 days to reach the minimum balance requirement of $500, and when you reach that $500 you’ll start earning interest on your funds. If you deposit at least the minimum balance on the same day you open your Marcus CD, you’ll start earning interest that day. Remember: the greater your balance, the more interest you could earn on your money. Play around with our CD calculator to see how much interest you could earn with different deposit amounts.
Good to know: with a Marcus high-yield CD, you can withdraw the interest you’ve earned. You can make monthly or one time transfers of your interest earned to your Marcus Online Savings Account, or to one of your linked external bank accounts.
How much interest will I earn on a CD?
How much interest you’ll earn on a CD depends on many factors:
How much money you deposit into your CD; Marcus requires a minimum balance of $500, and you’ll start earning interest once you reach that minimum balance (you have 30 days to fund your Marcus CD).
The CD term you choose; Marcus offers various terms from 6 months to 6 years.
The APY for the CD you choose; generally - with Marcus - the longer the term of the CD, the higher the APY. Learn more about APYs. (Note: With our 10-Day CD Rate Guarantee, when you open a CD and deposit at least $500 within the first 10 days and the rate on your selected CD term goes up during this time, you'll get that rate — automatically.)
Learn more about Marcus high-yield CD rates changing in our FAQs).
Whether you withdraw interest during the term of the CD; since the interest you make compounds, when it is withdrawn, it can reduce the amount of interest you can earn during the term of the CD.
Use the CD calculator to see how much interest you could earn with a Marcus CD at various deposit amounts and term lengths.
Are CDs worth it?
If you’re trying to decide on a place to put your money, and don’t anticipate needing access to your funds during the duration of a CD term, a CD may be a good product for you. CDs typically offer higher APYs than traditional savings accounts. Additionally, CDs are usually FDIC-insured, up to the maximum allowed limit. If you like these features, a CD may be worth it to you.
Use the CD calculator to see how much you could earn on a Marcus CD.
What CD term should I choose?
When it comes to choosing the right CD term for you, think about your savings goal. For example, a 12-month CD might be appropriate when saving up for a vacation, while a 5-year CD could be better for saving up to buy a home. In general, the longer the term of a certificate of deposit, the more money you’ll likely earn on it. You can use the CD calculator to test out different term lengths and see what best fits your goals. Good to know: whichever Marcus CD term you choose, your high-yield rate is locked in for the full term as soon as you meet the minimum balance of $500. Plus, if you fund your CD within ten days of account opening, the Marcus 10 Day CD Rate Guarantee ensures you receive the highest rate available on your selected CD during the first ten days following account opening.
You could even use a strategy like a CD ladder in which you spread your money across multiple CDs at different term lengths, resulting in each CD having a different maturity date. For instance, you could set up a 1-year, 2-year, and 3-year CD. As each CD matures, you could either withdraw those funds or roll them into a new CD at the current rate with a new maturity date. This way you can benefit from various CD rates while having your money more accessible than if all of your savings were in a single long-term CD.
Another strategy you could try is a CD barbell, in which you divide your savings equally into short-term and long-term CDs (similar to each end of a barbell) in order to try and average out a higher APY over the terms. Longer-term CDs often have higher rates than shorter-term CDs, and strategies like these help you to take advantage of those high-yield rates while also having access to your money in the short-term.
Playing around with the CD calculator can show you the difference in earned interest with CDs at varying lengths and deposit amounts.
Are a Marcus CD and No-Penalty CD the same thing?
They’re similar, but different. Both Marcus CDs and No-Penalty CDs have high-yield, fixed rates that can lead to guaranteed returns (assuming that the funds are held through end of the term). And with both, you can withdraw your earned interest throughout the term. (Your interest disbursement can either be a one-time withdrawal for any allowable amount or a recurring monthly withdrawal for all interest earned in that period.) The main difference between a Marcus CD and a Marcus NPCD: You’ll be charged a penalty if you withdraw from a CD’s principal before the term ends, but a No-Penalty CD allows you to withdraw your entire balance (principal including interest) beginning 7 days after funding, without a penalty. Learn more about how to avoid a CD withdrawal penalty.
Use the CD calculator to see how much interest you could be earning with a Marcus CD. If you’re also interested in a No-Penalty CD (NPCD) and would like to know how much interest you could earn, check out our No-Penalty CD calculator.
Are Marcus CDs FDIC insured?
Yes. Marcus CDs are provided by Goldman Sachs Bank USA. Goldman Sachs Bank USA is an FDIC member, which means that funds deposited in Marcus CDs are insured up to the maximum allowed by law. Learn more about FDIC coverage.