Marcus Savings Account by Goldman Sachs launches 27th September

[MusingMarket]

1.5% interest rate (including a 0.15% bonus that can be renewed annually).

“easy access, no restrictions, and complete transparency” according to the GS managing director

Deposits from £1 to £250,000.

Launches Thursday morning according to This Is Money[0], The Times[1] also says Thursday.

A previous This Is Money[2] piece stated it will be covered by the FSCS (up to £85k of course).

I think I'll open an account since I'm only getting 1.19% (Shawbrook - yes they currently offer 1.3% but I'm on a previous issue that means I can't easily get the latest rate - it's not just bonuses that are annoying!)

Also, the bonus doesn't look like the typical screw the lazy saver tactic. "Marcus" in the US has offered a very competitive rate for a few years so the bonus may genuinely be a way of rewarding early adopters since Goldman Sachs are likely to continue offering a competitive rate.

The Times article also states GS plan to start offering ISAs (presumably cash) and bonds (presumably fixed term/rate savings accounts) after the easy access account.

[0] https://www.thisismoney.co.uk/money/art ... -rate.html

[1] https://www.thetimes.co.uk/article/gold ... -2mqrmcp50

[2] https://www.thisismoney.co.uk/money/new ... ender.html

[stevensfo]

1.5% interest rate (including a 0.15% bonus that can be renewed annually).

Deposits from £1 to £250,000.

A previous This Is Money[2] piece stated it will be covered by the FSCS (up to £85k of course).

I'm sure it will attract quite a few clients, but I'm genuinely interested in why anyone would want to put £250,000 in an account paying only 1.5%.
With rpi inflation rate in August at 3.5% this means they will lose 2% per year or £5000. Oh, and most not even covered by the FSCS limit.

“easy access, no restrictions, and complete transparency” according to the GS managing director

Oh, that's alright then!

Steve

[Alaric]

I'm sure it will attract quite a few clients, but I'm genuinely interested in why anyone would want to put £250,000 in an account paying only 1.5%.

Short term cash, between sale and purchase of a house perhaps.

There may be those who are that risk adverse that they sacrifice potential returns for security, they hope, of capital value. If by risk, they mean volatility rather than catastrophe, that and any other deposit satisfies the requirement.

[MusingMarket]

So the website ( https://www.marcus.co.uk ) is live now, and I signed up easy enough. Despite my current/linked account stating "faster payments" takes a nap after 6:30pm my £1 deposited after 8pm is showing in my 'Marcus' account.

“easy access, no restrictions, and complete transparency” according to the GS managing director

Oh, that's alright then!

Steve

[SlickMongoose]

Seems like a good place for an emergency fund. Very easy to use website with a no-strings instant access account.

[Alaric]

1.5% interest rate (including a 0.15% bonus that can be renewed annually).

You wonder how long it will last before a marketing department seeks to justify its existence by dropping existing clients down to next to nothing rates and introducing whizzy new accounts.

But perhaps their track record in the USA counters that fear.

[AleisterCrowley]

I really can't get excited about 1.5%
It may be 'market leading', but to borrow a phrase from Stewart Lee, that's rather like winning a 'tallest dwarf competition'

[Slarti]

I really can't get excited about 1.5%
It may be 'market leading', but to borrow a phrase from Stewart Lee, that's rather like winning a 'tallest dwarf competition'

It is not market leading with Tesco paying 2.96% on the first £3,000
And I think Sainsbury's have something similar.

Slarti

[mc2fool]

It is not market leading with Tesco paying 2.96% on the first £3,000

Yeah, for £3k and if you shuffle in £750pm and have 3 DDs, and if you want to play that game, Tesco is beaten hands down by Nationwide & TSB paying 5% on £2500 & £1500 respectively, as well as by the 5% from a number of banks on regular savings accounts (up to £200-250pm).

But one really should compare apples with apples, and while, sure, there are a number of current accounts that offer better rates for smaller amounts (if you can meet the shuffle-in and DD requirements), if once one has used up the £2500 @ 5% from Nationwide, £1500 @ 5% from TSB, and 2*£3000 @ 3% from Tesco one still has instant access savings needs "Marcus" does indeed have the market leading rate for instant access savings accounts (and without the shuffle-in and DD faffs for the 1.5% BoS, Santander & Lloyds current accounts).

And I think Sainsbury's have something similar.

I can't find that, can you provide a link please?

[Slarti]

It is not market leading with Tesco paying 2.96% on the first £3,000

Yeah, for £3k and if you shuffle in £750pm and have 3 DDs

I don't "shuffle in £750pm and have 3 DDs"
Used to have to pay in £750, but never have had to have 2 DDs. Don't recall any requirement for any DDs, though I have always used it to pay off my Tesco Clubcard credit card, so paying in £750 was not a problem.

Perhaps Sainsburys have ceased their offer to new customers. I haven't looked recently.

£1500 @ 5% from TSB

I declined the offer from TSB when they were bought by the Spanish gauchos, same as I got the heck out of Abbey when they were bought by a less than salubrious Spanish company. Looks like my judgement on TSB was right.

Slarti

[mc2fool]

Yeah, for £3k and if you shuffle in £750pm and have 3 DDs

I don't "shuffle in £750pm and have 3 DDs"

Neither do I. But that's 'cos we had the accounts before 1 April 2017. New customers since then and now have to shuffle in £750pm and have 3 DDs.

[colboy]

Also good that it puts pressure on Shawbrook, RCI (even nsandi?) etc to raise their rates.

[Slarti]

I don't "shuffle in £750pm and have 3 DDs"

Neither do I. But that's 'cos we had the accounts before 1 April 2017. New customers since then and now have to shuffle in £750pm and have 3 DDs.

How strange. When I set up the account there was the requirement to pay in at least £750/month but they stopped it some time back.
I do pay over whatever is necessary to keep the balance at £3,000 after interest has been paid in and my Tesco credit card has been paid by DD.

Slarti

[Lanark]

"includes a bonus rate of 0.15% gross† for the first 12 months."

so the real rate at Marcus is only 1.35%

Not really worth all the hassle of applying.

[richlist]

"includes a bonus rate of 0.15% gross† for the first 12 months."

so the real rate at Marcus is only 1.35%

Not really worth all the hassle of applying.

That might be the case for you but someone with, say, £100K who is currently getting 1.25% can now get 1.50%. Ok, it only 0.25% extra, but that's worth £250 a year. So, id suggest that for them it is worth opening an account.

[BobbyD]

Well that's my BOS Vantage accounts put in to hibernation...