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Rate cut for thousands of Marcus and Saga customers tomorrow

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09/03/2020
Thousands of Marcus and Saga customers will see the rate on their easy access account fall from tomorrow.

Marcus, the retail arm of US banking giant Goldman Sachs, announced in February it was cutting its market-leading rate from 1.35% to 1.3%.

The change was effective immediately for new customers who opened an account on or after 19 February, but existing customers continued to get the higher rate until 10 March.

This was the second cut by Marcus in two months and the third time the challenger has slashed the rate on its easy access product since it launched in the UK in September 2018 with a market leading rate of 1.5%.

Saga, which partners with Marcus to offer savings products, will also cut the rate on its easy access account from 1.35% to 1.3%, which includes a 12-month bonus of 0.2%, for existing customers from tomorrow.

Better rates elsewhere?

Rates on savings accounts in general have been dismal for a while with best buy rates falling or being removed altogether.

However, Marcus and Saga customers can do slightly better than 1.3%.

Yorkshire Building Society’s easy access account pays 1.32% but you’ll need a minimum deposit of £100. This account only allows one withdrawal per account year unlike the Marcus account, which is a true easy access product and allows unlimited withdrawals.

Cynergy Bank pays 1.31% on its easy access account with a minimum deposit of £1. This allows unlimited withdrawals but the rate includes a bonus of 0.56% for the first 12 months.

You can also get 1.31% from Virgin Money with a minimum opening balance of £1. But this account limits withdrawals to two per year.

Rachel Springall, of rate monitoring firm Moneyfacts, said: “The deal from Marcus by Goldman Sach remains competitive, so there may well be savers who prefer to stay put, but they would be wise to keep an eye on the ever changing market so that they do not miss out on a more lucrative offer.”

 

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