Goldman Sachs’ Marcus 14-Month CD Yields 4% APY, Tops Market
GS•Goldman Sachs’ online platform Marcus offers a 14-month CD at a 4% APY, the highest short-term CD rate available. Despite Federal Reserve rate cuts since 2024, CD yields remain elevated compared with historical averages, solidifying Marcus’ competitive deposit-gathering position.
1. Marcus’ 14-Month CD Offering
Marcus by Goldman Sachs leads the market with a 14-month certificate of deposit at a 4% APY, the highest rate among short-term CDs. This offering surpasses the typical six- to 12-month CD yields, which hover around 4% APY, enhancing Marcus’ appeal to savers seeking fixed returns.
2. CD Rate Trends and Policy Impact
After 11 Federal Reserve rate hikes from March 2022 to July 2023 and three cuts between September 2024 and 2025, CD yields have retreated from peak levels but remain high by historical standards. The current inversion where 12-month CDs outpace longer terms signals market expectations of future rate declines.
3. Deposit Strategy and Margin Implications
An attractive 4% APY is likely to draw additional retail deposits into Marcus, bolstering Goldman Sachs’ low-cost funding base. However, sustaining above-market deposit rates may compress net interest margins if broader funding costs rise or lending yields adjust downward.
