Savings update: Marcus savings account from Goldman Sachs pushes rates up across the board

10 October 2018

Rates on online savings accounts are edging up after the arrival of the Marcus savings account from investment bank Goldman Sachs last month.

The account offers an interest rate of 1.5%. The firm says it has attracted more than 50,000 customers in its first week, thanks to such a competitive rate. Careful though as the rate includes a 12-month bonus of 0.15%. After a year it drops to 1.35%.

Charter Savings Bank has launched its Easy Access account at 1.4%, while Shawbrook Bank has upped the rate on its Easy Access account to 1.4% for new savers, as has Tesco Bank.

Meanwhile, Paragon has a new issue of its Limited Edition Easy Access account at 1.37%, while OakNorth Bank now pays 1.3%.

On one-year fixed-rate bonds, the top rate of 2.02% coming from OakNorth Bank and Al Rayan Bank, followed by Shawbrook Bank offering 2.01%.

You can earn slightly more if you tie up your money for two years – 2.32% with Al Rayan Bank, or 2.27% with Charter Savings Bank and Shawbrook Bank.

On tax-free Cash Isas, the best easy-access deal comes from Paragon’s Limited Edition Cash Isa at 1.37%Leeds Building Society’s Limited Issue Online Access Isa pays 1.36%, but runs only until December next year.

Virgin Money Double Take E Isa pays 1.35%, although you are restricted to making two withdrawals a year.

On one-year fixed-rate Cash Isas, Aldermore now pays a top 1.6%, followed by Paragon at 1.55%, while both Charter Savings Bank and Bank of Cyprus UK offer 1.54%. 

The top two-year deals are 1.82% from Bank of Cyprus UK, or 1.8% from Aldermore Bank.

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