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 4.20% 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 asof Sep 16, 2024
| Offer |
| |
|---|---|---|
| Account | Marcus by Goldman Sachs Online Savings Account | Discover® Online Savings OnDiscover Bank'sSecure Website. |
| Rating | Rating image, 4.75 out of 5 stars. 4.75/5Our 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. | Rating image, 5.00 out of 5 stars. 5.00/5Our 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. |
| APY | 4.40% | 4.20% |
| Min. to earn APY | $0 | $0 |
| Next Steps | Read Review | Open Account for Discover® Online Savings Read full review |
* Discover® Online Savings
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to Know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs onDiscover.com/Bank.
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.
Open Account for Discover® Cashback Debit
OnDiscover Bank'sSecure Website.
Member FDIC.
Ratings Methodology
Rates asof Sep 16, 2024
2024 Award Winner
Discover® Cashback Debit
Open Account for Discover® Cashback Debit
OnDiscover Bank'sSecure Website.
Member FDIC.
Rating image, 5.00 out of 5 stars.
5.00/5Our 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, 5.00 out of 5 stars.
5.00/5Our 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
Open Account for Discover® Cashback Debit
OnDiscover Bank'sSecure Website.
Offer alert
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 reimbursem*nt 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.
Read Full Review
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 Sept. 12, 2024
APY = Annual Percentage Yield
| Offer | Member FDIC. | Member FDIC. |
|---|---|---|
| Account | Marcus by Goldman Sachs High Yield CD | Discover® Bank CD |
| 3 Mo. | -- | 2.00% |
| 6 Mo. | 4.75% | 4.10% |
| 9 Mo. | 4.80% | 4.40% |
| 1 Yr. | 4.70% | 4.50% |
| 1.5 Yr. | 4.25% | 4.25% |
| 2 Yr. | 4.00% | 4.00% |
| 30 Mo. | -- | 3.75% |
| 3 Yr. | 4.15% | 3.75% |
| 4 Yr. | 4.00% | 3.60% |
| 5 Yr. | 4.00% | 3.60% |
| 6 Yr. | 3.90% | -- |
| 7 Yr. | -- | 3.60% |
| 10 Yr. | -- | 3.60% |
| Min. Deposit | $500 | $2,500 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps | Read Review | Open Account for Discover® Bank CD OnDiscover Bank'sSecure Website. Read review |
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 4.20% for Discover. It also has stronger APYs across all its CD terms. For example, Marcus's 9-month CD has a 4.80% APY, while Discover offers 4.40% on the same term. Likewise, Discover offers a 3.60% 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.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | up to 4.50%² Rate infoYou 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!¹ | Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. |
Open Account for UFB Portfolio Savings Account OnUFB'sSecure Website. Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | 5.15% Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.Min. to earn: $0 | N/A | Open Account for UFB Portfolio Savings Account OnUFB'sSecure Website. |
Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.Min. to earn: $0 | N/A | Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. |
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
Marcus could be right if you want to open CDs, as its APYs are competitive across nearly all its terms.
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.
