Marcus ups easy-access savings rates AGAIN this time to 4%
Marcus raises easy-to-access savings rates to 4% for 7th time this year – but 20 more providers pay more
- Online savings and cash Isa increases from 3.75% to 4%
- Best buy easy-access deal pays 4.34%
Marcus, Goldman Sachs’ app-based bank, has once again raised interest rates on its popular, easy-to-access savings deals to keep up with the competition.
As of today, the interest on her online savings account and cash Isa has increased from 3.75 percent to 4 percent. This rate includes a 12-month fixed bonus of 0.34 percent – which we explain in more detail below.
It is the seventh time this year that Marcus has raised interest rates, which stood at 2.5 percent in February.
Rate increase: Marcus, which is backed by Goldman Sachs, now pays 4% on his online savings and cash Isa accounts.
Marcus pays the same rate on his standard savings account and cash Isa.
The new rate will be available to all new and existing customers, with the underlying rate automatically increasing for existing customers.
Someone depositing £10,000 into either account can now expect to earn £400 in interest over the course of a year – albeit if rates remain the same.
At the end of last year, Marcus had £23bn in UK deposits and now claims to have around 800,000 clients.
The latest rate hike may not be enough to dissuade some customers from moving their money elsewhere. There are currently 20 low-threshold providers who pay a higher rate than 4 percent.
The best deals available in the market are currently offered by The Family Building Society and Shawbrook Bank, both of which pay 4.35 percent.
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Both accounts can only be opened and managed online and all funds deposited or withdrawn must be transferred to a linked UK checking account.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 savings deposits up to £85,000 per person, or £170,000 in the case of joint accounts.
Savers 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 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.
A major disadvantage is that Isa savers cannot transfer money from an existing Isa with another provider to Marcus.