The formerly table-topping Marcus By Goldman Sachs easy-access savings account has suffered a rate cut
The savings provider, which is less than one year old, today cut its easy-access account's rate to 1.45%.
Marcus stunned the savings market last year when it offered a significantly better rate than competitors at the time.
But the cut is just another blow to an already crumbling savings market.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, comments: “The scythes have been out in the easy access savings, and Marcus is the latest to fall prey. The drop from 1.5% to 1.45% follows hot on the heels of Virgin cutting the rate on its double-take accounts to 1.43% last Friday.
"It may not be the first to face cuts but Marcus holds additional significance, because over the past year, while other rates have come and gone, Marcus has held fast at 1.5%.
"This could be a sign that falling rates across the fixed rate market have spread to easy access accounts, which don’t need to be quite so competitive to attract the cash they need."
The 1.5% previously offered by Marcus is still achievable from the likes of Cynergy Bank, while Shawbrook Bank offers 1.48%.
Ms Coles adds: "The good news is that this could be the nudge that savers need to switch out of their Marcus account at just the right time. Both the old rate and the new one include a bonus for a year, so those who signed up just after the launch were set to see their rates drop anyway at the end of September.
"Hopefully this will encourage savers to shop around for a better deal."
I do not recall a rate cut from the BOE, I yet I received a letter from Lloyd’s to inform me of a rate cut to my savings.
Oddly a similar cut to my credit card interest rate hasn’t happened.
Cut rates to savers but not to borrowers just shows how little our tax payer bailed out banks have learned!
Greed Greed Greed