Goldman's Marcus Raises High-Yield Savings Rate to Pre-Pandemic Level

Goldman Sachs Group Inc.’s consumer bank Marcus is offering the highest interest rate for its high-yield savings account since the pandemic began.

The firm raised its annual percentage yield to 1.7%, up from 1.5% at the end of July. The last time Marcus boasted a rate that high was in early 2020, before central banks around the world cut interest rates in response to the spread of Covid-19.

Online high-yield savings accounts became popular in the last few years as a low-risk way to keep cash liquid while still generating a return higher than traditional savings accounts. Marcus, along with similar options from firms including Barclays Plc and Ally Bank, generally follow the trajectory of the two-year Treasury yield, with a lag.