In today’s financial climate, where interest rates are constantly shifting, selecting the right high-yield savings account (HYSA) is crucial for maximizing returns. American Express National Bank and Marcus by Goldman Sachs are two of the top players offering competitive HYSA options. But when interest rates are falling, which one should you choose? Let’s dive into a comparison of the two, examining their features, pros, and cons to help you make an informed decision.
American Express vs. Marcus by Goldman Sachs: Key Features and Benefits
Both American Express and Marcus by Goldman Sachs offer high-yield savings accounts that attract savers with their competitive annual percentage yields (APY), no monthly maintenance fees, and user-friendly digital platforms. However, subtle differences in interest rates and account functionalities may influence your decision.
Marcus by Goldman Sachs High-Yield Savings Account
- APY (Annual Percentage Yield): 3.90%
- No Minimum Opening Deposit: This makes it easy to get started with Marcus by Goldman Sachs, regardless of your savings amount.
- No Monthly Fees: You won’t pay monthly maintenance fees with this account, making it ideal for those looking to avoid extra charges.
- Compounding: Interest is compounded daily and credited to your account monthly, allowing you to earn on your earned interest.
- Withdrawal Limits: The Marcus HYSA allows unlimited withdrawals and transfers, which offers flexibility. Furthermore, it supports same-day transfers of up to $100,000, making it convenient if you need quick access to your funds.
- ATM Card: Unfortunately, Marcus does not offer an ATM card for direct access to your savings. To withdraw funds, you’ll need to transfer them to an external account, but the same-day transfer feature partially compensates for this limitation.
American Express High-Yield Savings Account
- APY (Annual Percentage Yield): 3.80%
- No Minimum Opening Deposit: Like Marcus, there are no requirements for a minimum deposit, making this account accessible to all types of savers.
- No Monthly Fees: This account also comes with no monthly maintenance fees, which can save you money in the long run.
- Compounding: Interest compounds daily and is credited monthly, which helps you earn interest on your interest.
- Withdrawal Process: While transfers are possible, they can take up to three business days to complete, a slight drawback compared to Marcus’s same-day transfer capabilities.
- ATM Card: Like Marcus, the American Express HYSA does not offer an ATM card, which means you’ll need to plan for transfers to external accounts for withdrawals.
Which HYSA Offers the Better Rate?
On paper, Marcus by Goldman Sachs offers a higher APY (3.90%) compared to American Express (3.80%). However, when it comes to small balances, the difference in return may not be substantial enough to sway your decision. For example, depositing $1,000 in a Marcus account at 3.90% APY would earn approximately $39.77 in interest over one year. By contrast, the same deposit at 3.80% APY would yield about $38.73 in interest.
While this 0.10% difference seems marginal, it’s important to note that the larger your balance, the more meaningful this difference will become. Even so, since savings account interest rates are variable and can change at any time, focusing solely on the APY might not be the best strategy when selecting a bank.
Mobile Banking Experience: How Do the Apps Compare?
In today’s digital world, a smooth mobile banking experience is crucial. Both American Express and Marcus by Goldman Sachs offer mobile apps that help users manage their accounts conveniently from their smartphones.
- Marcus by Goldman Sachs App: Available on both the App Store and Google Play, the Marcus app has high ratings (4.9 stars on iOS and 4.2 stars on Android). The app is praised for its user-friendly interface and the ability to perform tasks like account opening, fund transfers, and balance checking seamlessly.
- American Express App: This app also enjoys positive reviews, with ratings of 4.9 stars on iOS and 4.7 stars on Android. While the app is highly rated, its functionalities extend beyond just banking, offering options to manage your credit cards, track Membership Rewards points, and set up payment reminders.
Both apps provide essential tools for managing your account on the go, but if you’re looking for a more streamlined savings experience, Marcus’s app might be slightly more straightforward in terms of banking-related functionalities.
Additional Considerations: Customer Support and Accessibility
When selecting a high-yield savings account, it’s also essential to consider customer support and overall accessibility. Both American Express and Marcus by Goldman Sachs are known for excellent customer service, but Marcus generally offers more proactive online support through its robust website and app functionalities. Both institutions are FDIC-insured, which means your savings are protected up to $250,000 per depositor, per ownership category.
American Express vs. Marcus by Goldman Sachs: The Verdict
After weighing all the factors, it’s clear that Marcus by Goldman Sachs edges out American Express by offering a slightly higher interest rate (3.90% APY versus 3.80% APY), same-day transfers, and unlimited withdrawals. While the difference in APY may seem small, it could lead to more significant gains over time, especially for larger balances.
However, American Express National Bank shouldn’t be ruled out entirely. Its solid mobile app experience and similar features make it a worthy competitor in the high-yield savings account space.
Final Thoughts on High-Yield Savings Accounts
Choosing the right high-yield savings account depends on your personal preferences, savings goals, and the level of convenience you need in terms of accessing your funds. While Marcus by Goldman Sachs may have the edge in terms of higher rates and quicker transfers, both options offer a competitive and reliable way to grow your savings.
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