Review
Updated
Fact Checked
Ashley Maready
Bottom line: Marcus by Goldman Sachs has higher APYs and lower minimum deposits on its CDs, while Discover® Bank ranks higher in customer service and offers a checking account with a cashback debit card.
Marcus vs. Discover: Account options
Here's a breakdown of the accounts these two banks offer.
Savings accounts
Marcus and Discover both offer online savings accounts with no monthly fees and no minimum opening deposits. With the Discover® Online Savings, you can earn a 4.25% APY on your savings, while Marcus offers a 4.40% rate. Although the Marcus by Goldman Sachs Online Savings Account has a higher APY, Discover gives you more ways to fund your account, including mobile deposits, which Marcus does not offer.
Rates as
of May 02, 2024
| Offer |
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|---|---|---|
| Account | ||
| Rating |
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| APY | 4.40% | 4.25% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
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Checking accounts
At this time, Marcus does not offer a checking account. Discover, on the other hand, has a free checking account, the Discover® Cashback Debit, with no monthly fees and no minimum or deposit requirements. The account is named after its cash back debit card, which earns 1% in cash back on up to $3,000 in monthly purchases. The account also comes with fraud protection, access to over 60,000 fee-free ATMs, and the option to get paid two days in advance.
Member FDIC.
Ratings Methodology
Rates as
of May 02, 2024
2024 Award Winner
Discover® Cashback Debit
Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
APY
0%
Min. To Earn APY
N/A
- Cash back rewards on debit cards
- Early direct deposit
- No monthly maintenance, NSF, or overdraft fees
- Great customer service
- Cash back rewards capped
- No interest-bearing checking account
- No physical branches
- No reimbursement for out-of-network ATMs
The Discover Cashback Debit account could be a lucrative option for those who frequently use their debit card. With cash back on eligible purchases, it's possible to earn even more than you could with a typical checking account APY without changing your habits at all. The fact that Discover has done away with many common checking account fees only adds to its appeal.
CDs
Marcus CDs have higher APYs and lower minimum balance requirements. The bank offers 10 terms, ranging from six months to six years, and requires only $500 to open an account. It also has a 10-day CD rate guarantee, which will automatically raise your rate in the first 10 days if ongoing rates go up, so long as you deposit at $500 within that same timeframe.
Discover CDs come in 12 terms, which range from three months to 10 years. The variety of term lengths could make Discover ideal for building a long and varied CD ladder, especially if you want to extend your CD rate more than six years into the future. Discover's minimum opening deposit is five times higher than Marcus ($2,500) and its APYs are generally lower.
Rates as of May 1, 2024
APY = Annual Percentage Yield
| Offer |
|
|
|---|---|---|
| Account | Marcus by Goldman Sachs High Yield CD | Discover® Bank CD |
| 3 Mo. | -- | 2.00% |
| 6 Mo. | 4.80% | 4.25% |
| 9 Mo. | 4.90% | 4.25% |
| 1 Yr. | 4.90% | 4.70% |
| 1.5 Yr. | 4.60% | 4.40% |
| 2 Yr. | 4.20% | 4.00% |
| 30 Mo. | -- | 3.75% |
| 3 Yr. | 4.15% | 3.75% |
| 4 Yr. | 4.05% | 3.75% |
| 5 Yr. | 4.00% | 3.75% |
| 6 Yr. | 3.90% | -- |
| 7 Yr. | -- | 3.75% |
| 10 Yr. | -- | 3.75% |
| Min. Deposit | $500 | $2,500 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
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Marcus vs. Discover: APYs
All things considered, Marcus has stronger APYs than Discover for comparable accounts.
For one, its savings account has a slightly higher rate than Discover: 4.40% APY on the Marcus by Goldman Sachs Online Savings Account versus 4.25% for Discover. It also has stronger APYs across all its CD terms. For example, Marcus's 9-month CD has a 4.90% APY, while Discover offers 4.25% on the same term. Likewise, Discover offers a 3.75% APY on a 5-year term, while Marcus offers 4.00%.
Marcus vs. Discover: Customer service
Discover and Marcus both ranked high on the J.D. Power 2023 U.S. Direct Banking Satisfaction Study. For savings providers, Discover ranked first in overall satisfaction among several banks, while Marcus was second. Discover also ranked second in overall satisfaction among checking account providers. Since Marcus doesn't have a checking account, it did not participate in that part of the study.
On the Better Business Business Bureau, both banks are BBB accredited and have an A+ rating. They have a poor rating on Trustpilot, with Discover getting 2 stars and Marcus having 2.7 stars. All in all, clients at both banks seem satisfied with the customer service, with neither bank ranking exceptionally above the other.
Marcus vs. Discover: Mobile apps
Discover has one of the most highly rated mobile apps in the banking industry. You can manage all your accounts, including credit cards and loans, within one app, plus track your spending, send or request money, and monitor your credit score. The app has 4.9 out of 5 stars on the App Store and 4.5 out of 5 stars on Google Play.
Marcus' mobile app also lets you track expenses and send or request money using Zelle. It also lets you link several external accounts to give you a more complete picture of your finances. One noticeable blemish, however, is that it doesn't let you deposit checks through the app. Instead, you have to mail them to Marcus the old-fashioned way. The app has 4.9 out of 5 stars on the App Store and 4.3 stars on Google Play.
Marcus vs. Discover: Which is right for you?
If you want to have all your bank accounts in one place, Discover could be a better fit, as you can open a checking account and link it to your savings or CDs. Alternatively, if higher APYs are important to you, Marcus is worth considering, especially if you're interested in opening CDs.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
|
|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
|
N/A
|
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
|
New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
|
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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Marcus could be right if you want to open CDs, as its APYs are competitive across nearly all its terms.
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Discover might be a good fit if you want a checking account -- even more fitting if you want a cash back debit card to go with it. It would also better suit those who want to deposit checks through their mobile apps.
Our Banking Experts
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet and Goldman Sachs Group. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.