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Best-buy Marcus account savings rate cut to 1.35% – what you need to know

Best-buy Marcus account savings rate cut to 1.35% – what you need to know

Goldman Sachs has today dropped the standard rate on its Marcus savings account to 1.35% for new customers – knocking it off the top of the easy-access best-buy table. Existing customers are unaffected for now, but will also revert to this rate once their 12-month 'bonus' expires.

When Marcus was launched in September last year, it offered a market-leading rate of 1.5% (which included a 0.15% bonus). This was cut to 1.45% in September this year, including a 0.1% bonus for new savers, but it still offered one of the top rates on the market..

After the rate drop to 1.35% (with no bonus), other brands can beat Marcus, with Shawbrook Bank currently having the top rate at 1.41%, and the Post Office offering 1.38%, including a fixed 0.88% bonus for 12 months. 

Bonus rates are temporary interest hikes to attract new customers, which essentially act as a minimum rate guarantee during the introductory period.

See our Top Savings Accounts guide for more information.

How will the changes affect me?

If you open a new Marcus account from today, you'll be offered a rate of 1.35% AER variable. If you opened an account with £1,000, you'd have a projected balance of £1,013.50 after 12 months.

If you opened a Marcus account when the rate was 1.5% or 1.45%, you won't necessarily be affected by the changes announced today. Once your account becomes 12 months old though, it'll revert to the standard rate, currently 1.35%.

Are there better options out there?

If you're a new customer looking to put money in an easy-access account – which will give you flexibility to make regular withdrawals – the current top rate is from Shawbrook Bank. It pays 1.41%, but you have to deposit a minimum of £1,000 and you can only withdraw a minimum of £500 at a time. So it stretches the definition of 'easy access'.

If you have less cash, or may want to withdraw smaller amounts, you could look at the Post Office, which offers 1.38%, including a fixed 0.88% bonus for 12 months, and can be opened with £1. Withdrawals are unlimited.

You can often get more return for your cash by opening a fixed-rate account – which will give you less flexibility with withdrawals – or some current accounts.

See Top Savings Accounts for more information.