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Goldman Sachs’ popular online bank Marcus is raising interest rates on both easy-to-access savings deals.
Interest will go up from today online savings account And cash isa rises from 2.5 percent to 2.8 percent.
However, savers will have to opt for a 12-month fixed ‘bonus’ rate of 0.25 percent, otherwise they will only earn 2.55 percent.
>> See the best easy-to-access savings rates using our independent best-buy chart
The Goldman Sachs-backed bank has increased both its easy access account and cash Isa
With the bonus included, this means that someone who deposits £10,000 into either account can expect to receive £250 in interest over the course of a year.
For those making large deposits, cash is protected up to £85,000 per person by the Financial Services Compensation Scheme and in the case of joint savings accounts this doubles to £170,000.
How does the account work?
The account can only be opened and managed online and all funds deposited or withdrawn must be transferred to a linked UK checking account.
New customers can open an account with £1 and can deposit up to £250,000.
They can add and withdraw money whenever they like, but there’s a £20,000 per day withdrawal limit online – although there’s an option to call in if they need to withdraw more.
It’s also worth noting that the account can be opened jointly by two people, but an existing Marcus customer cannot convert their account into a joint account.
How does the bonus work?
The 2.8 percent rate is available to both new and existing customers, with the underlying rate (2.55 percent) automatically increasing from 2.25 percent for existing customers.
If they haven’t already done so, existing customers will need to log into their account to add the additional 0.25 percent bonus – just like new customers signing up for the first time.
Existing savers currently have the option to reset their existing 12-month bonus, securing the additional 0.25 percent for an entire year.
To do this, they need to log into their Marcus dashboard, click on ‘view’ their online savings and then ‘view their savings’, which will give them the option to extend their bonus term and ensure they have it before secure the full 12-month period. .
How does Marcus compare to other savings deals?
The 2.8 percent rate means Marcus is competitive against typical savings rates.
The average easy-access deal pays 1.8 percent, according to Moneyfacts, while the average easy-access cash Isa pays 1.93 percent.
>> View the best easily accessible rates And best cash Isa rates.
However, the Goldman Sachs-backed bank’s online savings account is currently among more than 20 other easily accessible deals.
Yorkshire Building Society is the best buy paying 3.35 per cent, albeit only on balances up to £5,000.
Any cash held above £5,000 earns a rate of 2.85 per cent – up from 2.5 per cent previously.
A balance of £10,000 accrues interest over two tiers; the first £5,000 earns 3.35 per cent and the additional £5,000 earns 2.85 per cent.
However, Yorkshire BS allows only two withdrawals per year from the account without loss of any interest, with the year on the anniversary of the account opening.
Anyone wanting a savings account where they can move in and out more frequently might consider paying Newbury Building Society 3.15 percent instead.
The Welcome to Newbury account is available to all new members and can be opened in person at our branches, online or by post.
Shawbrook’s Online Easy Access account pays 3.01 percent, while Tandem pays 3.05 percent on its app account, which includes a 0.2 percentage point bonus for a year.
You can also earn 3.1 percent online with Paragon Bank, but you can only make three withdrawals per year.
Others crossing the 3 percent mark include Atom, along with Saffron BS and Secure Trust online – all offering 2.95 percent.
Do you need to sign up with Marcus?
There are currently plenty of deals that pay out 3 percent or more, so savers can get more interest elsewhere.
One of the reasons people might consider the Marcus account is that unlike some of the top paying ‘easy-access’ deals, Marcus comes with no strings attached – except for the £20,000 online withdrawal limit.
For example, a number of other easy-access providers, currently at the top of our best buy easy-access tables, limit savers to a certain number of withdrawals per year or a maximum balance.
Additionally, as some savers are wary of shifting their money to smaller, lesser-known providers, the fact that Marcus is a banking service offered by Goldman Sachs may give them some peace of mind.
Many other major banks continue to pay rock bottom rates on easily accessible accounts.
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