Marcus easy-access savings account by Goldman Sachs closes to new customers
Popular online savings account stops accepting applications.
10th June 2020 14:40
by Brean Horne from interactive investor
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Popular online savings account stops accepting applications.
Marcus has taken its popular easy-access savings account off the market for new customers.
Owned by investment banking giant, Goldman Sachs, the Marcus easy-access savings account dominated best buy tables when it launched in September 2018, paying 1.5%.
Since then, its rate has been cut several times. Last month alone Marcus slashed its interest rate twice, from 1.3% down to 1.05%.
Marcus announced that the closure is “just a temporary change” and they hope to make the online savings account available again soon.
Existing customers will not be affected and can use their accounts as normal.
But the Saga easy-access savings account, which pays 1%, is still accepting new customers. This is operated by Goldman Sachs and is effectively a rebadged version of Marcus.
Why has Marcus closed the account?
In the UK, larger banks that hold more than £25 billion in deposits must meet special rules from the Financial Conduct Authority (FCA).
The FCA says banks of this size must separate their essential banking services from the rest of their business to help protect customers’ money.
Marcus currently has 500,000 customers and holds £21 billion in deposits, close to the FCA's limit. As a result, it has shut its account to new customers for now.
A Marcus statement says: “In the last couple of months in particular, more people have been opening online savings accounts with us and saving greater amounts of money. As a result, the total amount of deposits we hold has accelerated significantly.
“It is important that we manage how quickly we grow, at a rate that is manageable to us. To do this, we’ve decided to temporarily stop accepting applications for our online savings account.”
Which is the best easy-access rate?
National Savings & Investments (NS&I) now offers the two best easy-access interest rates, according to data from Savings Champion. The NS&I Income Bonds account pays 1.16% and requires a minimum deposit of £500.
This is followed by the NS&I Direct Saver and the Saga Easy Access Savings Account, which both pay 1% and can be opened with a minimum deposit of £1.
The next best rate is via Yorkshire Building Society’s Annual Access Account (Issue 4), which pays 0.95% and requires a minimum deposit of £100.
This article was originally written by our sister website Moneywise.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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