FDIC: Deposit Insurance
Learn about insurance coverage for the money you deposit in Marcus Online Savings Accounts and CD accounts, as determined by the FDIC.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government. Goldman Sachs Bank USA, Salt Lake City Branch.
What is the FDIC?
The FDIC is an independent federal agency established in 1933 to help protect customer deposits at member financial institutions, in the event of a bank failure. The FDIC insures your money, up to allowable limits, in deposit accounts such as savings, CD, checking, money market and retirement accounts. Marcus deposit accounts are provided by Goldman Sachs Bank USA, which is a member of the FDIC. This means the money you deposit in Marcus Online Savings Accounts and CD accounts is eligible for insurance coverage based on eligibility maximums determined by the FDIC. Currently, the FDIC insures $250,000 per depositor, per FDIC-insured bank, per ownership category.
Customers at financial institutions are not required to apply for or request FDIC insurance coverage, but it’s important to understand how your deposit coverage works. See below for some helpful information about eligibility for FDIC coverage for deposit accounts Goldman Sachs Bank USA. For more information, the FDIC website includes the Electronic Deposit Insurance Estimator (EDIE), an online tool you can use to calculate your actual FDIC coverage. Find it at www.fdic.gov/edie.
Note: In case you have other accounts with Marcus, FDIC deposit insurance only applies to your deposit (savings or CD) accounts. Similarly, because FDIC insurance is applied per FDIC-insured bank, FDIC insurance limits will apply to any other deposit products you may have at Goldman Sachs Bank USA, in addition to your Marcus accounts.
The examples shown on this page are designed to help explain how FDIC insurance works and are not intended as estate planning or other financial advice. Please check with your own financial advisor about what’s best for you.
How FDIC Coverage Works
The FDIC insures deposits at a financial institution according to ownership category. The following ownership categories are available for Marcus deposit accounts (account ownership requirements can be found in our Deposit Account Agreement):
Ownership Categories
Single Owner Accounts
An individual can have one or more individual accounts in their name insured up to a total $250,000 combined.
Joint Accounts
Because deposits are insured on a per depositor basis, having a joint account (a deposit account owned by two or more people) can impact your insurance coverage. When assigning insurance coverage, the FDIC will look at each join account owner’s share of all the joint accounts he/she owns at the same insured bank and add them together and insure up to $250,000.
Before adding a joint owner to an account, be sure you’re comfortable with that person having access to the account balance.
Accounts with Beneficiaries
Adding beneficiaries to an account allows the account owner to decide who should receive the funds if the account owner(s) pass away.
The FDIC calls accounts with beneficiaries “Payable on Death (POD)” accounts. This is a separate ownership category and therefore can also impact the amount of insurance coverage you’re eligible to receive.
A POD account is insured up to $250,000 for each unique beneficiary up to a maximum account balance of $1,250,000. If an owner has the same beneficiary listed for multiple accounts, the total insurance coverage for the owner across those accounts will still only be $250,000 for each beneficiary.
Money in a beneficiary account belongs to the account owner(s). Beneficiaries may have access to the funds after the account owner(s) is deceased.
Before adding a beneficiary to an account, be sure you’re comfortable with that person receiving the account balance if you pass away.
Understand how FDIC insurance eligibility works with multiple accounts and ownership categories at Marcus
The FDIC insures up to $250,000 in deposits per depositor, and per ownership category (see above), across a single financial institution. The below example will demonstrate how a fictitious customer, Maria, who only has Marcus deposit accounts and no other deposit accounts at Goldman Sachs Bank USA, determines her FDIC insurance coverage for her deposits based on her accounts with different ownership categories. Reminder: This is an example for illustration purposes only.
When determining insurance coverage, a Marcus customer must look at all deposit accounts they have in their name and in each ownership category at Goldman Sachs Bank USA. If you’re a joint owner on other Marcus or Goldman Sachs Bank USA account(s), it will affect your total eligibility for FDIC insurance coverage. Insurance coverage can be complicated and we encourage you to use the FDIC’s calculator at www.fdic.gov/edie to help you best determine your coverage on your deposits.
Single Owner Accounts
Maria has a total of $250,000 deposited across three (3) Marcus Savings and CD accounts for which she’s the single owner. As long as the combined balance of all her single ownership accounts at Goldman Sachs Bank USA does not exceed $250,000, all these deposits will be fully insured.
Maria's Single Owner Accounts
Maria's Single Owner Accounts
This example is just one possible scenario. For more information about FDIC coverage for single owner accounts, see Understanding Deposit Insurance at fdic.gov.
Joint Accounts
At Marcus, a deposit account can have a total of up to 4 joint owners. Because joint owners have full access to the funds in the account, you should carefully consider who you add as a joint owner.
Example: Maria and David have $500,000 deposited in a joint Online Savings Account. As noted above, there are two important points to remember about insurance coverage for joint accounts:
- The FDIC assigns a joint account’s balance equally among all the joint account’s owners. So for Maria and David’s joint account, for insurance purposes, Maria’s share is half ($250,000) and David’s share is half ($250,000).
- The maximum amount that each joint owner can have insured at one financial institution is $250,000. That means each owner must add up all their shares of all the joint accounts they have at Goldman Sachs Bank USA, and a total of $250,000 can be insured.
Because this joint account is the only joint account Maria has at Goldman Sachs Bank USA, and her share of the balance doesn’t exceed $250,000, her share is fully covered. And because this joint account is the only joint account David has at Goldman Sachs Bank USA, and his share of the balance doesn’t exceed $250,000, his share is fully covered, as well. If either Maria or David adds another joint account at Goldman Sachs Bank USA, he or she will need to ensure that their balances in all their joint accounts combined doesn’t exceed $250,000.
Maria and David's Joint Account
Maria and David's Joint Account
This example is just one possible scenario. For more information about FDIC coverage for single owner accounts, see Understanding Deposit Insurance at fdic.gov.
Accounts with Beneficiaries
Assigning one or more beneficiaries allows Maria to choose who receives the funds in her account if she passes away. Goldman Sachs Bank USA allows customers to designate up to 6 beneficiaries on an account (with a maximum of $1,250,000 eligible for FDIC insurance). Maria’s account will be insured up to $250,000 for each unique beneficiary, as long as every beneficiary has an equal interest in Maria’s deposit accounts.
Example: If Maria deposits $750,000 into a CD account (without a joint owner), designates her 3 children as beneficiaries, and none of her other accounts at Goldman Sachs Bank USA have the same 3 children designated as beneficiaries, then the entire $750,000 balance will be fully insured. The account’s insurance coverage is based on the beneficiaries and does not include Maria.
Reminder: Accounts are insured on a per depositor, per ownership category basis (not per account) and if an account owner lists the same beneficiaries across other accounts at Goldman Sachs Bank USA, this will impact the total insurance coverage for the accounts. (Marcus permits Maria to revoke, terminate, or change these designations at any time at her discretion.) Any beneficiary you add to an account will be entitled to a proportionate share of the funds in your account once you pass away, so consider carefully if, and whom, you want to add as a beneficiary.
Maria's Account with Beneficiaries
Maria's Account with Beneficiaries
This example is just one possible scenario. For more information about FDIC coverage for single owner accounts, see Understanding Deposit Insurance at fdic.gov.
What could it look like if Maria put all this together?
In this example, Maria’s accounts could have FDIC insurance coverage for $1,500,000 in total deposits based on the combination of account owners and ownership categories shown.
This example is just one possible scenario. For more information about FDIC coverage for single owner accounts, see Understanding Deposit Insurance at fdic.gov.
Marcus requires all primary and joint account owners to sign a Signature Card (via electronic signature or on paper) to ensure deposits are eligible for the maximum amount of FDIC insurance.
Learn more about FDIC insurance and coverage limits
To determine how much insurance is applicable to your accounts at Goldman Sachs Bank USA and for any other FDIC insurance requirements that may apply, please visit the FDIC website at www.fdic.gov/deposit/deposits or call the FDIC directly at 1-877-ASK-FDIC (1-877-275-3342). The FDIC website includes the Electronic Deposit Insurance Estimator (EDIE), an online tool you can use to calculate your actual FDIC coverage. You can find the EDIE calculator at www.fdic.gov/edie.