Marcus ups easy-access savings rates AGAIN this time to 4%

Marcus, the app-based bank run by Goldman Sachs, has once again boosted the interest rates on its popular easy-access savings deals as it tries to keep up with competitors. 

From today, the rate on its online savings account and cash Isa increased from 3.75 per cent to 4 per cent. This rate includes a 12-month fixed bonus of 0.34 per cent – which we explain in more detail below.

It marks the seventh time this year that Marcus has increased the rate, which stood at 2.5 per cent in February.

Marcus pays the same rate across its standard savings account and cash Isa. 

The new rate will be available to all new and existing customers, with the underlying rate rising automatically for existing customers.

Someone putting £10,000 in either account can now expect to earn £400 of interest over the course of a year – albeit if rates remain the same. 

At end of last year Marcus held £23billion in UK deposits and now claims to have roughly 800,000 customers.

Its latest rate hike may not be enough to prevent some of its customers from moving their cash elsewhere. There are currently 20 easy-access providers that pay a higher rate than 4 per cent.

The best deals available on the market are currently offered by The Family Building Society and Shawbrook Bank, both paying 4.35 per cent.

What is in the Marcus small print? 

Both accounts can only be opened and managed online, and any money paid in or out must be transferred via a linked UK current account.

In terms of the online savings account, new customers can open it with just £1 and can deposit up to £250,000. 

Just remember that the FSCS only protects savings deposits up to £85,000 per person, or £170,000 in the case of joint accounts.

Savers can add and withdraw money as and when they want, but there is a withdrawal limit of £20,000 a day online – although there is an option to call in if you need to withdraw more.

It’s also worth noting that the account can be opened jointly by two people, but an existing Marcus customer can’t convert their account into a joint one.

Those opting for the cash Isa deal can deposit up to £20,000 this tax year as per the maximum Isa allowance.

One major drawback is that Isa savers can’t transfer funds from an existing Isa with another provider to Marcus.