Marcus Bank fires the best savings table with easy access to the best purchase with an interest rate hike for new customers AND an even better offer of 0.6% for existing savers
- Savers can now receive an interest rate of 0.6% at Marcus Bank
- Its second rate boost after six cuts in a year since the pandemic broke out
- Typical prices for easy access are the lowest in history
Marcus Bank has increased the rate on its easily accessible savings account and put it back on the top buying charts for customers for the first time since it reopened.
The bank, supported by Goldman Sachs, has increased both its regular account with easy access and its cash Isa from 0.4 to 0.5 percent.
However, it offers new and existing customers an additional 12-month fixed interest bonus of 0.1 percent on both account types and thus up to 0.6 percent.
Existing customers will be automatically added the uplift to 0.5 percent, but will need to log into their account to add the additional 0.1 percent.
Rate hike: Marcus Bank raised the interest rate for its easy access for the first time since launch, having lowered it six times since the pandemic broke out
Anyone who raised their interest rate from 0.4 percent to 0.5 percent earlier in the year now also gets 0.6 percent interest, in the rare case of a bank that rewards loyalty.
Launched in September 2018, Marcus was a consistent best buy even at the start of the pandemic as it offered a leading 1.5 percent on accounts with easy access as it soaked up savers.
It closed its doors in June 2020 because it risked breaking UK banking regulations if it hit Â£ 25 billion in deposits.
That would have forced it to delineate its UK operations and not use the money to fund its London-based investment banking unit.
It reopened its doors earlier this year, but to date it hasn’t topped the independent This is Money savings tables. In fact, it cut rates six times between March 2020 and March 2021.
The bank has Financial Services Compensation Scheme protection up to Â£ 85,000 and accounts can be opened online with Â£ 1.
His cash Isa can also be opened with Â£ 1 and is now also a best buy in our savings tables.
One big catch, however, is the fact that wire transfers are not accepted, presumably to prevent large sums of money from pouring in.
|December 11, 2020||0.5%|
|March 16, 2021||0.4%|
|Source: Sparmeister / This is money * Savers can opt for an interest rate hike of 0.1%|
Challenger Bank Cynergy also offers an easy access rate of 0.6 percent, which however accepts transfers. Also it is only online and can be opened with Â£ 1.
Regarding standard accounts with easy access, Family Building Society has an interest rate of 0.65 percent that exceeds Marcus but requires an opening balance of Â£ 10,000.
Aldermore Bank has a double access account that pays 0.6 percent which requires an opening balance of Â£ 1,000.
Easy-access rates are still in the doldrums, and none of the rates currently offered by a mainstream FSCS-protected savings provider can even come close to inflation, which was 3.2 percent in August.
It remains to be seen whether Marcus’s move can help fuel much-needed competition.
Challengers tend to fight more fiercely for the fixed-rate money from savings accounts.
This week Gatehouse launched a best buy fix of 1.51 percent for a year, while the new Bank Recognize came out late last week with a market leading rate of 2 percent.
According to Moneyfacts, the average easy access rate is the lowest it has ever been.
The typical rate is just 0.17 percent, down from 0.22 percent in September last year and 0.64 percent in the same month of 2019.
It is because many of the UK’s big banks continue to offer just 0.01 percent on these bread-and-butter accounts.
Meanwhile, the same applies to easily accessible cash isas, which have continued to crash, from an average of 0.93 percent in September 2019 to 0.32 percent in September 2020 and 0.24 percent today.
The situation is different for fixed-income accounts, which have risen slightly compared to last month and September 2020.
How to find the best savings rates
The savings rates have been in the doldrums for some time and are being exacerbated by the pandemic.
But there are ways to ensure that your money is in the best possible amount at all times.
A number of savings platforms have been launched in recent years, giving savers the option to switch as soon as better deals are available.
They each work slightly differently and contain their own exclusive elements. To see what’s on offer, take a look for yourself:
Or, you can check out This is Money’s comprehensive Best Buy savings tables here, independently curated by savings guru Sylvia Morris:
> Compare the best savings prices now