Bank account: Britons urged to act fast as Marcus relaunches ‘top rate’ savings account
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Bank accounts are considered the best place to put money away and keep it safe, however, recent interest rates have not persuaded many this is a worthwhile endeavour. In March 2020, the Bank of England took the decision to reduce its base rate to a staggering low of 0.1 percent, causing many providers to follow suit and create a difficult environment for those hoping to grow their funds. However, a return to the market by the popular savings provider Marcus by Goldman Sachs, today, is likely to be good news.
Marcus has taken the decision to reopen its account to new savers starting today, and offers a top rate in the current market.
The Marcus account will pay 0.5 percent, significantly above the average easy-access deal currently available to savers.
The account first launched to Britons in September 2018 and proved particularly popular, but was closed in June 2020 due to a spike in demand.
Savers flocked to Marcus in the summer of 2020 following rate cuts from several other providers.
However, new savers were disappointed when the decision was made to close the account.
With recent leading interest rate providers slashing their offerings, the announcement from Marcus is set to be particularly welcomed.
A Marcus spokesperson commented on the latest development to Express.co.uk.
They said: “We are pleased to make our Online Savings Account available to new applicants again.
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“Effective today, February 10, 2021, new and existing customers can apply for our Online Savings Account as individual or joint applicants, and start saving with as little as £1.
“Our Online Savings Account currently offers 0.50 percent AER variable.”
It is unclear as to what will happen with interest rates going forward, given the current climate and ongoing pandemic.
Last week, the Bank of England told providers to prepare for negative interest rates, a method it said was “in the toolbox”.
So, with little good news on the horizon for savings, Britons may wish to explore the options currently at hand.
Rachel Springall, finance expert at Moneyfacts, spoke to Express.co.uk about the new account, providing in-depth insight.
She said: “It’s great to see a top rate deal launched onto the easy access market at a time when interest rates continue to fall to new lows.
“The average rate on easy access accounts stands at 0.17 percent, but the rate from Marcus is almost three times that, at 0.50 percent.
“At the moment, the top rate on the savings market comes from ICICI Bank UK at 0.60 percent, which is due to drop to 0.50 percent in March, plus the deal in only available to new and existing Home Vantage Current Account customers.
“With this in mind, the rate from Marcus is highly competitive and a few of its rivals do not provide unlimited withdrawals.”
For those hoping to grow their money, the Marcus account could be a perfect solution.
However, as Ms Springall concluded, it will be important to act fast in order to benefit.
She said: “It is hard to tell whether this re-entry from Marcus will stir up competition at a time where interest rates are at historic lows.
“But as with any attractive rate, savers would be wise not to hang around to wait and see, as a good deal doesn’t tend to have a very long shelf life.”
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