BANK and savings accounts – and the interest rates they offer – are something many will look to keep an eye on. Recently, Marcus by Goldman Sachs reintroduced one of its accounts, however a change to the rates available has taken place.
Marcus by Goldman Sachs initially launched its 1-Year Fixed Rate Saver earlier this year, in March 2020. However, the account – which was offering an interest rate of 1.4 percent – was temporarily removed from the market in May 2020.
However, Marcus by Goldman Sachs has this month reintroduced the fixed term savings account.
But, while the account made a comeback last week, some changes have taken effect.
It now offers an interest rate of one percent AER/gross (fixed) over a one-year period.
Customers can save from £1 up to a maximum of £250,000 in this online account.
It comes just months after the Bank of England Base Rate hit a historic low, following two successive cuts.
The emergency measures, taken in response to the coronavirus crisis, have seen the Bank Rate drop from 0.75 to 0.25 and then to 0.1.
The fixed rate account came following the launch of the Marcus Online Regular Saver two years ago, which has been among the accounts offering top paying interest rates on easy access savings.
This week, Marcus by Goldman Sachs temporarily paused the ability for new UK customers to open its online easy access savings account.
The decision came following an influx of savers depositing money, the bank said.
Since its launch in 2018, the Online Savings Account has seen more than 500,000 customers open an account, depositing a total of more than £21billion.
This takes deposits close to regulatory limits that demand ring-fencing of deposits totalling more than £25billion.
Marcus, which is operated by the investment bank Goldman Sachs, has said it remains committed to its customers and the UK market, and hopes to reopen the account in coming months – although this is dependent on market conditions.
Despite cuts to its interest rate earlier this year, the account has recently been named as a top payer, offering customers interest rates of 1.05 percent on easy access savings.
Existing customers have been told that they will be unaffected by the recent news.
This week, Managing Director of Marcus by Goldman Sachs, Des McDaid, said: “We are temporarily not accepting new applications for our Marcus online savings account in order to manage our rate of deposit growth.
“This step will allow us to continue providing great value to our existing customers. We remain committed to expanding our UK retail business in future.”
Commenting on the news, Rachel Springall, Finance Expert at Moneyfacts, told Express.co.uk: “This is disastrous news for savers who are looking for a new account as the returns on offer on many easy access accounts for new customers continue to plummet.
“The average easy access rate on the market has dropped to a record low of 0.30 percent and may well fall further in the weeks to come.
“As we have seen before with other providers, they can limit the flow of money into a business either by withdrawing their product from sale or changing its eligibility criteria.
“This is typically as a last resort as usually a provider would cut its interest rate to look less attractive.
“Existing savers who have an account would be wise to keep a close eye on their rate and account terms and conditions.
“Just because they have a competitive return now does not mean they will continue to do so in the months to come.”