Marcus by Goldman Sachs boosts interest rate on fixed rate saving account
Martin Lewis says there is a 'sliver of hope' for savers
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Marcus by Goldman Sachs is becoming an increasingly popular option amongst British savers. The organisation states it is “putting the interest back into savings” with a number of options likely to entice savers. With interest rates taking a knock at the start of the pandemic, the general opinion towards savings accounts at present has not been a favourable one.
Some accounts are offering rates as low as 0.01 percent, at staggering lows which may dishearten savers.
However, the most recent announcement from Marcus today could make individuals feel more optimistic.
The provider has said it will be increasing the interest rate on its One Year Fixed-Rate Saver account to 0.50 percent.
This deal will be made available to new customers joining Marcus for the first time.
And a key benefit is that the interest rate will also be fixed, providing stability for savers looking to grow their funds.
The new interest rate will be made available from today, and was previously set at 0.40 percent.
Interest on this account is calculated daily and paid at the end of the term.
To open this account, individuals will need a minimum savings amount of £1.
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This means this kind of account is very much suitable for those who are looking to get started on their savings journey.
Indeed, the maximum savings amount which can be held in the One Year Fixed Rate Saver is £250,000 plus interest.
Once again, this offers savings flexibility, allowing individuals to grow their sum to substantial levels.
Britons who wish to open this account can do so online, but will need to provide their own email address and mobile phone number to do so.
As this is a fixed rate account, savers won’t be able to add money throughout the length of the term.
As a result, savers will have 14 calendar days from opening the account to add money in, and they can do so as many times as they wish within this period.
To open this account, either in sole or joint names, individuals must be 18 or over and a UK resident – including for tax purposes.
Withdrawals from the Marcus One Year Fixed Saver are not permitted within the term.
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However, individuals can ask Marcus if they wish to close this account early – but should be aware there is an early closure fee.
Those who close the account within the first 90 days will incur a fee equal to the interest they have earned so far on the account.
Closing an account after this point triggers a fee equal to the interest earned during the first 90 days.
A Marcus spokesperson told Express.co.uk: “We regularly review movements in the wider savings market, and in that context we’ve made this adjustment to our 1 Year Fixed Rate Saver.”
Eleanor Williams, Finance Expert at Moneyfacts, also commented, and said: “Following a rate increase today, Marcus by Goldman Sachs now pay 0.50 percent on its 1 Year Fixed Rate Saver account for new customers.
“It is always positive to see rate improvements made, particularly following the record-low rates we have seen for savers in the aftermath of the pandemic.
“However, savvy investors may wish to keep an eye on the top rate tables, as if they are happy to fix their savings pot away for a one-year term, they may be able to find rates in excess of one percent elsewhere.
“For those who would rather keep their nest egg in an easy access account and keep more flexible access to their cash in these unprecedented and unpredictable times, it may be interesting to note that Marcus by Goldman Sachs also offer an Online Savings Account which pays 0.50 percent (inclusive of 0.10 percent bonus for 12 months) variable.”
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