Why Goldman Sachs' Marcus May Have a Tough Time Continuing Its Rapid Deposit Growth
I think most banking experts would agree that Goldman Sachs' (NYSE: GS) digital bank Marcus has been very successful. The consumer banking platform offers high-yield savings accounts that pay an annual percentage yield (APY) four times higher than the national average. Marcus also offers high-yield certificates of deposits, unsecured loans, and credit cards.
In particular, the high-yield savings account has been a deposit machine for the investment bank in recent quarters. However, no matter how successful, all savings accounts are limited by market forces, namely the Federal Reserve's benchmark Fed Funds interest rate. In March, the Fed dropped the Fed Funds rate to zero, which could soon hamper Marcus' ability to continue bringing in deposits at the same pace it has been in the first half of the year.
Image source: Marcus.
Source Fool.com
