Marcus closes easy-access savings deal to new customers

10 June 2020

Goldman Sachs temporarily shutters popular savings deal

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Marcus has taken its popular easy-access savings account off the market for new customers.  

Owned by investment banking giant, Goldman Sachs, the Marcus easy-access savings account dominated best buy tables when it launched in September 2018, paying 1.5%.

Since then its rate has been cut several times. Last month alone Marcus slashed its interest rate twice, from 1.3% down to 1.05%.

Marcus announced that the closure is “just a temporary change” and they hope to make the online savings account available again soon.

Existing customers will not be affected and can use their accounts as normal.

But the Saga easy-access savings account, which pays 1%, is still accepting new customers. This is operated by Goldman Sachs and is effectively a rebadged version of Marcus.

Why is Marcus closing its account?

In the UK, larger banks which hold more than £25 billion in deposits must meet special rules from the Financial Conduct Authority (FCA).

The FCA says banks of this size must separate their essential banking services from the rest of their business to help protect customers’ money.

Marcus currently has 500,000 customers and holds £21bn in deposits, close to the FCA's limit. 

As a result, it has shut its account to new customers for now.

A Marcus statement says: “In the last couple of months in particular, more people have been opening online savings accounts with us and saving greater amounts of money. As a result, the total amount of deposits we hold has accelerated significantly.

"It is important that we manage how quickly we grow, at a rate that is manageable to us. To do this, we’ve decided to temporarily stop accepting applications for our online savings account.”

Where can you find the best easy-access savings rate?

National Savings & Investments (NS&I) now offers the two best easy-access interest rates, according to data from Savings Champion.

The NS&I Income Bonds account pays 1.16% and requires a minimum deposit of £500.

This is followed by the NS&I Direct Saver and the Saga Easy Access Savings Account which both pay 1% and can be opened with a minimum deposit of £1.

The next best rate is offered by Yorkshire Building Society’s Annual Access Account (Issue 4) which pays 0.95% and requires a minimum deposit of £100.

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