Is Marcus by Goldman Sachs FDIC Insured? What You Need to Know

Yes, Marcus by Goldman Sachs accounts are FDIC insured up to $250,000 per depositor per bank

Marcus by Goldman Sachs is an online bank owned by Goldman Sachs Bank USA, which holds an FDIC charter. This means deposits you hold in a Marcus savings account or money market account are covered by FDIC insurance up to $250,000 per account owner. If the bank fails, the FDIC will reimburse you for the full balance of your account, up to that limit.

The $250,000 limit applies per depositor, per insured bank, per ownership category. If you have a savings account and a money market account both at Marcus, they are added together and covered by a single $250,000 limit. If you also hold deposits at another FDIC-insured bank, those are covered separately under their own $250,000 limit.

Marcus does not charge monthly fees, does not require a minimum balance, and does not have a maximum deposit amount. You can deposit as much as you want, but only the first $250,000 is insured by the FDIC. Amounts above $250,000 are not protected if the bank fails.

Key Takeaways

Marcus savings and money market accounts are covered by FDIC insurance up to $250,000 per account owner.
If you hold both a savings account and a money market account at Marcus, the $250,000 limit covers both accounts combined, not each one separately.
Deposits at Marcus are insured by the FDIC because Goldman Sachs Bank USA holds an FDIC charter and is a member bank.
You can deposit more than $250,000 at Marcus, but only the first $250,000 is protected by FDIC insurance.

How FDIC Insurance Works at Marcus

The FDIC (Federal Deposit Insurance Corporation) is a federal agency that insures deposits at member banks. When you open an account at Marcus, your deposits are automatically insured — you do not need to sign up or pay a fee. The insurance is backed by the full faith and credit of the U.S. government.

If Goldman Sachs Bank USA were to fail, the FDIC would step in and pay depositors directly. You would receive a check or electronic transfer for your balance, up to $250,000. The FDIC has a track record of paying out insured deposits within a few business days of a bank failure.

The $250,000 limit has been in place since 2008 and applies to all FDIC-insured banks. It is not a Marcus-specific rule. If you have $300,000 in a Marcus savings account, the FDIC covers $250,000 and you lose the remaining $50,000 if the bank fails.

What Ownership Categories Mean for Your Coverage

FDIC insurance recognizes different ownership categories, and each one gets its own $250,000 limit. If you hold an account in your name alone, that is one category. If you hold a joint account with another person, that is a separate category with its own $250,000 limit. A retirement account (like an IRA) is another category.

For example, if you have a Marcus savings account in your name alone with $200,000, and a joint savings account with your spouse with $200,000, both are fully insured. The first account is covered under the "single ownership" category and the second under the "joint ownership" category. Each has its own $250,000 limit.

If you have a Marcus IRA, that balance is insured separately from your regular savings account. The IRA is covered up to $250,000 under the "retirement account" category. Marcus offers both traditional and Roth IRAs, and both are FDIC insured.

Comparing Marcus to Other FDIC-Insured Banks

All FDIC-insured banks offer the same $250,000 coverage limit. The difference between Marcus and a traditional bank is not the insurance — it is the interest rate and fees. Marcus is an online-only bank, which means lower overhead costs. It typically pays higher interest rates on savings accounts and money market accounts than brick-and-mortar banks.

A traditional bank branch may pay 0.01% annual percentage yield (APY) on a savings account, while Marcus may pay 4% or higher, depending on market conditions. The trade-off is that you cannot walk into a branch or speak to someone in person. All transactions happen online or by phone.

If you need FDIC insurance and want to maximize interest earnings, Marcus is one option. If you need in-person service or prefer a local bank, you can find FDIC-insured options there too. The insurance protection is the same either way.

What Happens if You Deposit More Than $250,000

If you deposit $300,000 in a Marcus savings account, the FDIC insures $250,000 and the remaining $50,000 is uninsured. If the bank fails, you lose the $50,000. If the bank does not fail, you keep all $300,000 and earn interest on the full amount.

One way to protect deposits above $250,000 is to split them across multiple banks. You could deposit $250,000 at Marcus and $50,000 at another FDIC-insured bank. Each bank would cover your deposit up to $250,000. This strategy works only if each bank is separately chartered — deposits at two branches of the same bank do not get separate coverage.

Another option is to use different ownership categories at the same bank. If you and your spouse each hold an account at Marcus in your own names, you each get $250,000 of coverage. A joint account would be a third category with its own $250,000 limit. This allows a household to insure up to $750,000 at a single bank.

Marcus Checking Accounts and FDIC Coverage

Marcus also offers a checking account called Marcus Checking. Balances in a Marcus Checking account are FDIC insured up to $250,000, just like the savings account. If you hold both a checking account and a savings account at Marcus, they are combined under a single $250,000 limit in the "single ownership" category.

The checking account does not have a monthly fee, does not require a minimum balance, and comes with a debit card and online bill pay. Interest rates on checking accounts are typically lower than on savings accounts. Marcus Checking is useful if you want to keep your everyday spending account and your savings account at the same bank while staying within FDIC coverage limits.

Frequently Asked Questions

Is my money safe at Marcus if the bank fails?

Yes, up to $250,000 is safe because it is FDIC insured. The FDIC will reimburse you directly if Goldman Sachs Bank USA fails. Amounts above $250,000 are not protected. In practice, large FDIC-insured banks rarely fail, and the FDIC has a strong track record of paying out deposits quickly.

If I have $250,000 in a Marcus savings account and $250,000 in a Marcus money market account, am I fully covered?

No. Both accounts are in the same ownership category (single ownership), so they are combined for insurance purposes. Only $250,000 total is covered by the FDIC. The remaining $250,000 is uninsured. To cover both amounts, you would need to hold one account at Marcus and one at a different FDIC-insured bank.

Does Marcus charge a fee for FDIC insurance?

No. FDIC insurance is automatic and free at all member banks, including Marcus. You do not pay anything extra for the coverage. The FDIC is funded by member banks, not by depositors.

What if I have a joint account with my spouse at Marcus?

A joint account is a separate ownership category from a single-owner account. If you and your spouse each have $250,000 in individual accounts and $250,000 in a joint account, all three accounts are fully covered — the joint account has its own $250,000 limit. This allows a household to insure up to $750,000 at Marcus.

Are Marcus CDs FDIC insured?

Yes. Marcus offers certificates of deposit (CDs) that are FDIC insured up to $250,000 per ownership category, just like savings accounts. If you hold a CD and a savings account at Marcus, they are combined under a single $250,000 limit.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.