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Retirement plans: (k) vs. High-Yield Savings Accounts (offered by Marcus by Goldman Sachs)

Quick Verdict

A 401(k) is generally better for long-term retirement savings due to tax advantages and potential employer matching, while a HYSA like Marcus is suitable for short-term savings and emergency funds due to its liquidity and FDIC insurance. Marcus HYSA offers competitive interest rates and superior customer satisfaction.

Key features – Side-by-Side

Attribute(k)High-Yield Savings Accounts (offered by Marcus by Goldman Sachs)
Contribution Limit (Annual)—No annual contribution limit, but maximum balance of $3,000,000 across all deposit accounts per owner.
Employer Matching (if applicable)—Not applicable.
Tax Advantages—Contributions are made with after-tax dollars. Interest earned is taxable as income.
Investment Options—High-yield savings account (depositing cash to earn interest). Also offers CDs (High-Yield, No-Penalty, and Rate Bump).
Fees and Expenses—No monthly maintenance fees, transfer fees, or any other fees.
Withdrawal Rules and Penalties—Not applicable.
Interest Rate (for savings accounts)—Variable. As of August 10, 2025, APY is 3.65%. May vary based on account balance.
FDIC Insurance (for savings accounts)—Yes, up to $250,000 per depositor.
Liquidity (access to funds)—Flexibility to add or withdraw money at any time. Same-day transfers available for transfers of $100,000 or less.
Minimum Balance Requirements—No minimum deposit required to open and no minimum balance required.
Account Management (online tools, customer service)—Online tools and a mobile app are available. Customer service is available 24/7 via chat or phone.
Ratings—overall: Marcus Online Savings Account was rated #1 in Customer Satisfaction with Savings Accounts in the J.D. Power 2024 U.S. Direct Banking Satisfaction Study.

Overall Comparison

Marcus HYSA: 3.65% APY (as of August 10, 2025), FDIC insured up to $250,000, rated #1 in Customer Satisfaction (J.D. Power 2024). 401(k): Employee contribution limit $23,500 (2025).

Pros and Cons

401(k) and High-Yield Savings Account (HYSA)

Pros:
  • 401(k): Potential for employer matching contributions.
  • 401(k): Tax advantages (pre-tax contributions or tax-free withdrawals depending on the type).
  • HYSA: High interest rates compared to traditional savings accounts.
  • HYSA: FDIC insured up to $250,000.
  • HYSA: Easy access to funds.
Cons:
  • 401(k): Withdrawal penalties for early access.
  • 401(k): Investment options limited to those chosen by the employer.
  • HYSA: Interest rates vary and are subject to change.
  • HYSA: Some accounts may have minimum balance requirements.

High-Yield Savings Accounts (offered by Marcus by Goldman Sachs)

Pros:
  • No monthly maintenance, administrative, or transaction fees
  • Easy access and withdrawal of funds
  • Same-day transfers available for transfers of $100,000 or less
  • No minimum balance requirements
  • 24/7 customer service
  • FDIC insured up to $250,000 per depositor
Cons:
  • Interest earned is taxable as income
  • Interest rate is variable and can change
  • Early withdrawal penalties apply to High-Yield CDs and Rate Bump CDs

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