Goldman Sachs launches new bank called Marcus offering highest paying savings rate on the market
SAVERS can now earn a table topping 1.5 per cent in an easy-access account as Goldman Sachs shakes up the market with its new banking arm called "Marcus".
Best known for being an investment bank, the launch of Marcus sees Goldman Sachs take on traditional high street banks and newer app-only digital banks.
Named after one of the original founders of Goldman Sachs, Marcus Goldman, the new bank aims to reverse the low interest rate trend we've seen over the past few years.
The brand has been available in the US since 2016.
At launch, Marcus only offers one product - an online savings account - but this is market leading at 1.5 per cent AER, including a 0.15 per cent bonus fixed for a year.
This beats the next top paying account, which is Yorkshire Building Society's Single Access Saver (Issue 13) at 1.41 per cent AER, according to comparison site Savings Champion.
Best bank accounts for savings
AS you can now earn interest tax free on savings accounts - not just Isas - some savvy savers have been using current accounts to get a cash boost.
Here are some of the highest-paying current accounts around, according to Savings Champion:
- - You get 5 per cent on balances up to £2,500 for the first year you have the account before it drops to 1 per cent. You have to pay in at least £1,000 a month to qualify for the interest.
- - This pays 3 per cent on balances up to £3,000, until 1 April 2019. To get the interest you must pay in at least £750 a month and have at least three direct debits set up to leave the account each month.
- - You get 5 per cent with TSB but only on balances up to £1,500. But you have to pay in at least £500 a month and register for internet banking, paperless statements and correspondence. You can also earn an extra £5 a month if two direct debits are taken from the account each month.
Macrus' account is available to UK residents over the age of 18.
Savers can deposit from £1 to £250,000 and withdraw their money as many times as they like, with no fees or charges.
The account must be opened and managed online, but telephone support is available 8am to 8pm Monday to Friday from a UK-based customer services team.
Managing director of Marcus, Des McDaid, said: “Over the last decade savers have been on the wrong end of low interest rates.
"We’ve spoken in-depth to people across the country and there is a real disillusionment about savings – while most UK adults are diligently trying to save every month, some do not even have a savings account, with low interest rates and complexity being put to blame.
“We want to reverse the trend – literally putting the interest back into savings and make saving worthwhile again."
What the experts say
Money experts are in agreement that the launch of Marcus should stoke competition in the savings market, which is only a good thing for savers.
But there are worries that its new savings account won't last long given its likely popularity.
Shakila Hashmi, head of money at comparison website Compare the Market said: “Goldman Sachs’ entrance into the mainstream of retail banking should be good news for savers.
"The rate offered on its first UK savings account is around three times more generous than the average savings accounts from the major players.
"As such, we would expect a high degree of interest in switches to the Marcus account in the coming weeks.
"Our hope is that this is a catalyst for other banks to offer better rates to their customers. Its arrival in this market is highly visible and, essentially, throws down the gauntlet to the rest of the industry.”
Sally Francis-Miles, money spokesperson at comparison website MoneySuperMarket, adds that the launch is "refreshing", but warns that if the account proves popular it may not be around for long.
She said: "Goldman Sachs’ entry to the market under its savings brand Marcus is a refreshing change.
“Hopefully it will also mean an account that stays in the market for more than a couple of days – top rate accounts don’t usually last longer than that due to high demand for them.”
More on banking
The Bank of England base rate rose from 0.5 per cent to 0.75 per cent this August.
But banks have been slow to pass this rise on to loyal customers.
For the top accounts, see our round-up of the best paying savings accounts.
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