Savings update: could Goldman Sachs spark new competition and push up rates?

26 September 2018

Investment bank Goldman Sachs will launch details of its first savings account available to UK savers later this week. 

It is holding its cards close to its chest as to what the exact rate will be, but says that it aims to be in at the top of the best buy tables. It is expected to pay a rate of around 1.5% on the online easy access account, which could spark more competition in a dull savings market. The accounts will be launched under the brand name Marcus.

The top rate is currently 1.37% from both Kent Reliance Easy Access and AA Savings Member Saver, open to those who belong to the motoring organisation.

On fixed rate bonds, the top rate is currently 2.02% from ICICI Bank followed by Charter Savings Bank and Oaknorth Bank both at 2.01%. Atom, Ford Money, Investec, Tandem and Zenith banks all pay 2%.

For 18 months you can earn marginally more with the 2.11% from Charter Savings Bank, while the best two-year rate is 2.3% from Al Rayan Bank or 2.25% from Investec and Tandem banks. 

On easy access Cash Isas, the best rate comes from Virgin Money’s Double Take E-Isa at 1.36% but you are limited to making two withdrawals a year.

Yorkshire Building Society has a rate of 1.35% on its Single Access Isa which restricts you to making withdrawals on just one day in a year – and you are moved into a lower paying account after the first 12 months. 

The top rate with no withdrawal restrictions is Shawbrook Bank Easy Access Cash Isa 4 at 1.3%.

On fixed rate cash Isas, Paragon pays 1.55%, Bank of Cyprus 1.54% with Shawbrook Bank at 1.51% for one year. 

This article was first written for our sister website Money Observer.

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