Marcus, the app-based bank run by Goldman Sachs, has once again boosted the interest rates on its popular easy-access savings deals.
From today, the rate on its online savings account and cash Isa increased from 3.5 per cent to 3.75 per cent. This rate includes a 12-month fixed bonus of 0.34 per cent – which we explain in more detail below.
It marks the sixth time this year that Marcus has increased the rate, which has now had 1.25 per cent added since it stood at 2.5 per cent in February.
Marcus pays the same rate across its standard savings account and cash Isa.
Rate boost: Marcus, which is backed by Goldman Sachs, now pays 3.75% on its Online Savings Account and cash Isa accounts.
The new rate will be available to all new and existing customers, with the underlying rate rising automatically for existing customers.
Someone putting £10,000 in either account can now expect to earn £375 of interest over the course of a year – albeit if rates remain the same.
At end of last year Marcus held £23billion in UK deposits and now claims to have roughly 800,000 customers.
It will be hoping that its latest rate hike will be sufficient to at the least prevent large numbers of customers leaving, given that savings rates have been rising across the market.
While, Marcus’s online savings account is well ahead of the average easy-access rate of 2.34 per cent, based on Moneyfacts data, it falls short of the best deals at the top of This is Money’s independent best buy savings tables.
Tandem Bank is now offering a market leading easy-access deal, paying a whopping 4.1 per cent.
Tandem’s deal allows for instant access without restictions. It combines an underlying rate of 3.75 per cent with a 12 month bonus rate of 0.35 per cent to achieve the 4.1 per cent.
Savings app Chip also boosted its rate to 4 per cent yesterday, while Principality and Sainsbury’s pay 4.1 per cent, as easy access rates climb above 4 per cent.
Marcus’ cash Isa deal is much more competitive. The best easy-access cash Isa on the market is currently offered by Shawbrook Bank and pays 3.78 per cent.
However, unlike most cash Isa deals, savers can’t transfer their existing cash Isas into Marcus’ account.
What is in the Marcus small print?
Both accounts can only be opened and managed online, and any money paid in or out must be transferred via a linked UK current account.
In terms of the online savings account, new customers can open it with just £1 and can deposit up to £250,000.
Just remember that the FSCS only protects savings deposits up to £85,000 per person, or £170,000 in the case of joint accounts.
They can add and withdraw money as and when they want, but there is a withdrawal limit of £20,000 a day online – although there is an option to call in if you need to withdraw more.
It’s also worth noting that the account can be opened jointly by two people, but an existing Marcus customer can’t convert their account into a joint one.
Those opting for the cash Isa deal can deposit up to £20,000 this tax year as per the maximum Isa allowance.
