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One month until first Marcus customers see their rate tumble

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27/08/2019
Thousands of Marcus customers who opened one of the bank’s headline-grabbing easy access accounts at launch will see their rate fall next month - unless they act now.

Marcus by Goldman Sachs exploded onto the UK savings scene on 27 September last year, with a market leading account paying 1.5 per cent.

The deal was the highest easy access rate for two-and-a-half years and sent savers into a frenzy, with a staggering 50,000 people opening an account in the first two weeks.

It even spurred other providers to raise rates. Nottingham Building Society, for example, at one point offered 1.55 per cent, although the deal was pulled within 48 hours due to unprecedented demand.

A downside to the Marcus deal is its 12-month bonus of 0.15 per cent, which means early adopters will soon see their rate drop to 1.35 per cent.

However, customers can retain the top rate by logging into their online account and following the instructions to renew the bonus rate.

A Marcus spokesperson said: “One of the key benefits of opening an account with Marcus is that all customers – both new and existing – have the opportunity to get our best available interest rate on their savings.”

A couple of other providers also offer 1.5 per cent. Virgin Money is one, but it only allows two withdrawals a year. Cynergy Bank is another, but the rate includes a variable bonus, which is currently 0.75 per cent, for 12 months. So you would need to make a note to shop around in a year’s time.

Switching is worth it

With inflation currently at 2.1 per cent, any money in an easy access account is losing value in real terms. Switching to a top-paying account won’t beat the eroding effects of inflation but can alleviate them.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, says: “If your money is languishing in a dismal easy access account with a high street giant it could be earning as little as 0.15 per cent.

“Switching to a competitive easy access account with a newer bank or building society can earn you ten times the interest.”

 

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