Marcus savings interest rate goes up for fifth time this year
App-based bank Marcus raises savings rates for the fifth time this year: We read the fine print and how it compares to rivals
- The rate on her online savings account and cash Isa increased from 3.3% to 3.5%
- The nominal rate includes a 12-month fixed interest bonus of 0.34%
- It is the fifth time this year that Marcus has raised interest rates
Marcus, Goldman Sachs’ app-based bank, is once again raising interest rates on its popular, easy-to-access savings deals.
Starting today, the course is going up online savings account And cash isa rises from 3.3 percent to 3.5 percent. This rate includes a 12-month fixed bonus of 0.34 percent – which we explain in more detail below.
It is the fifth time this year that Marcus has raised interest rates, which are now up a full percentage point from February’s 2.5 percent.
Rate increase: Marcus, which is backed by Goldman Sachs, now pays 3.5% on his online savings and cash Isa accounts
The new rate on both accounts is available to all new and existing customers, with the underlying rate automatically increasing for existing customers.
Marcus’ easy-to-access deal is well ahead of the average easy-to-access rate of 2.1 percent, based on data from Moneyfacts.
However, it remains shy of the best buy deals. This is Money’s best-buy savings rate table is currently led by rival app-based bank Chip, paying out 3.71 percent.
Marcus’ easily accessible cash Isa rate is also well ahead of the average rate of 2.29 percent.
It comes just 0.01 percentage point behind the market-leading deal that pays 3.51 percent, courtesy of Paragon Bank.
> View the best cash Isa rates here
The only downside is that Marcus doesn’t accept Isa cash transfers – so it won’t be possible for those with cash that Isa is holding elsewhere to take them across.
Someone depositing £20,000 into the easily accessible savings account or in cash, Isa can expect to earn £700 in interest over the course of a year, if the rate remains the same.
What’s in Marcus’ fine print?
Both accounts can only be opened and managed online and all funds deposited or withdrawn must be transferred to a linked UK checking account.
As for the online savings account, new customers can open it with just £1 and deposit up to £250,000.
Remember that the FSCS only protects deposits up to £85,000 per person, or £170,000 in the case of joint accounts.
They can add and withdraw money whenever they like, but there’s a withdrawal limit of £20,000 per day online – although there’s 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 cannot convert their account into a joint account.
Those opting for the cash Isa deal can deposit up to £20,000 this tax year at the maximum Isa allowance.
How does the bonus work?
The new 3.5 percent rate is available to both new and existing customers, with the bonus added automatically for new customers.
If they haven’t done so before, existing customers will need to log into their account to add the additional 0.34 percent bonus.
Existing savers also currently have the option to reset their existing 12-month bonus, securing the additional 0.34 percent for a full 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. .