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Marcus doubles one-year fixed savings rate

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Marcus has increased the interest rate offered on its 1 Year Fixed Rate Saver to 1.8% AER/gross from today.

New customers opening the 1 Year Fixed Rate Saver online as of today will earn 1.80% AER-/gross for the term.

The minimum amount is £1 and the maximum amount that can be saved is £250,000, and customers have 14 days to deposit money once the account is opened. Savers can make as many payments as they like during this funding window, but after this two-week period, no more money can be added.

Based on a £1,000 deposit held for the full year, customers would earn £18 in interest. Marcus confirmed interest is paid annually into the account at the end of the term.

Withdrawals aren’t allowed, but you can close your account for a fee. Account closures in the first 90 days will result in a fee equal to the interest earned to date. For closures after 90 days, the fee will be equal to the interest earned in the first 90 days.

Marcus added that it won’t charge the fee if it can see that a customer is in an unexpected or challenging circumstance which mean they need urgent access to their money.

Existing customers will continue to earn 0.9% on the 1 Year Fixed Rate Saver, Marcus by Goldman Sachs confirmed.

It added: “We regularly review movements in the wider savings market, and in that context, we’ve made this adjustment to our 1 Year Fixed Rate Saver.

“We’re pleased to have increased our interest rate following recent movements in the wider savings market. We are committed to offering competitive interest rates to our customers.”

In March the challenger bank raised the rate on its easy access, fixed rate and cash ISA products.

How good is this?

Marcus has previously been a market-leader in the interest rates offered on its savings accounts. However, this rate does fall short of the best buys in this category.

Data from Savings Champion reveals the top one-year fixed rate is offered from Flagstone (provided by Jordan International Bank) at 2.15% AER/gross. However, savers will need a minimum £10,000 to open the account.

For savers with a more modest deposit, Oxbury offers 2.13% AER/gross on its one-year bond for those with a minimum £1,000.

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