5 Things to Love About Online Banks

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Once a novelty, online banks have grown in popularity over the last decade. Rather than having to drive to a physical branch and step up to a teller’s window, you can perform simple transactions – like withdrawing or transferring money – at the click of a mouse or with a few taps on your mobile device.

In addition to the convenience, online banks typically offer other attractive features, such as lower fees and more competitive rates compared to brick-and-mortar banks. Here are a few more potential benefits that might surprise you.

1. You could earn more money with an online savings account

You’ll likely find that online banks can offer more competitive rates than traditional banks. And that makes sense if you think about it: Without having to maintain physical branches, online banks typically have lower overhead or operating costs; those savings can be passed on to their customers in the form of higher APYs (Annual Percentage Yield), low or no minimum balance requirements and/or lower fees.

Good to know: Marcus is backed by the financial expertise of Goldman Sachs, and our primary goal is to consistently offer highly competitive rates across our deposit products, including our Online Savings Account and CDs. With our Online Savings Account, you can expect to earn a rate that’s 8X the national average. And with our CD accounts, you can choose from a variety of terms to find one that works for you and your goals.

In addition to our competitive rates, we strive to bring value to our customers, delivering insightful financial education content, useful tools and timely market intelligence to help you navigate your finances.

The national average is from the FDIC's published National Rates and Rate Caps for Savings deposit products, accurate as of June 17, 2024. See the FDIC website for more information.

2. Opening or managing an account online can be simple

If you’re a customer of a brick-and-mortar bank, you’re probably already doing most of your everyday banking online – whether you’re logging in to pay a bill or transfer money. Working with an online bank is not that different.

It’s also possible to open an online savings account, even a high-yield one, without having to save up a lot of money first.  If you’re looking to open an account, do a little comparative shopping. You’ll find that many online banks have low or no minimum opening deposit or minimum balance requirement.

Good to know: At Marcus, you can complete an application online and open a deposits account in minutes. All it takes is a device with internet access. And once an account is open, you can manage it online or with the Marcus app.

3. Your online deposit accounts are insured

Like most brick-and-mortar banks, many online banks are also members of the FDIC. This means the money you put into a deposit account – like a high-yield savings account or a certificate of deposit account – will be insured up to the maximum allowable by law, which is currently $250,000 per depositor, per FDIC-insured bank, per ownership category.

If you’re shopping for a new bank and you’re not sure if it’s a member of the FDIC, you can use the FDIC’s BankFind tool to look up the financial institution and its membership status.

Good to know: Marcus deposit accounts are provided by Goldman Sachs Bank USA, an FDIC member. The money you deposit in Marcus Online Savings Accounts and CD accounts is eligible for insurance coverage based on eligibility maximums set by the FDIC – currently $250,000 per depositor, per FDIC-insured bank, per ownership category. Learn more here.

4. Branch-free banking means you can make transfers from almost anywhere

Many online banks offer 24/7 account access via your desktop or mobile device, which means you can manage your account and conduct simple transactions at your convenience. There’s no need to wait in line to speak with a teller.

Good to know: With a Marcus Online Savings Account, you can link accounts, add money, make a withdrawal, schedule and track transfers, and review your transactions all at the convenience of your fingertips by logging in online or using the Marcus app. And the best part? There are no fees – Marcus does not charge fees for transfers to or from your savings account.

5. Customer support can be pretty great

Without a physical branch location, some may think it’ll be difficult to get in touch with someone at the bank to get help for their account. But did you know that many online banks can offer great customer support over the phone or the internet? Depending on your bank, you may even be able to talk to someone (yes, a human customer representative) outside of the typical 9-to-5 business hours.

Good to know: At Marcus, there are several ways to get in touch with us to get your questions answered! We have a 24/7 contact center for our deposits customers. You also have the option to chat with us online to get the personalized help you need.

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions.