Marcus to cut savings interest rate for existing customers
Savers have been dealt another blow after Goldman Sachs’ savings account Marcus announced a rate cut for existing customers.
The account was a table-topper when it launched in the summer 2018, paying a rate of 1.5%.
But a series of rate cuts means it doesn’t stand out from the crowd anymore.
The underlying rate on the account dropped from 1.3% to 1.2% at the end of April, and was then cut again to 1.05% just a few weeks later.
The latest cut to an underlying rate of 0.7% is the biggest reduction yet. The account closed to new customers earlier this year.
The savings provider said it will be writing to its existing customers to give them at least 14 days’ notice of the change, which will take effect on 12 October 2020.
Any fixed bonus in place when you took out the Marcus account will remain in place as agreed. So the overall interest you earn may be more than that underlying rate – for example, if you had a bonus rate of 0.1%, you’ll earn interest at 0.8% until the end of the bonus period.
Goldman Sachs blamed the changes on current market conditions, saying savings rates across the market have fallen faster and further than expected over recent months due to the pandemic.
If you want to switch accounts, the top easy-access account at the moment is Coventry Building Society’s Double Access Saver which pays 1.1% and allows two penalty-free withdrawals per year.