Marcus to cut its easy-access rate
Savings provider Marcus is to cut the interest rate on its easy-access account from Monday 12 October – but should you switch?
The Marcus account, operated by investment banking giant Goldman Sachs, had consistently offered one of the top easy-access rates since its launch in September 2018 – until it was closed to new UK customers earlier this year. Now, existing customers will see their underlying interest rate fall from 1.05% AER to 0.7% AER.
See our Top Savings Accounts guide for more info on the best rates.
How will the Marcus changes affect me?
If you have a Marcus easy-access account, your underlying interest rate will drop from 1.05% to 0.7% on Monday 12 October.
However, any fixed bonus you have will remain in place until it expires 12 months after you took out the account or last renewed the bonus – so the overall interest you earn may be more than that underlying rate.
To illustrate this, here's how existing customers will be affected – their current rate will depend on when they took out their account or last renewed their bonus:
|1.15%, incl 0.1% bonus||0.8%, incl 0.1% bonus||0.7%|
You can check whether you've got an active fixed bonus – and when this will expire – by logging in to your Marcus account and clicking 'View' next to the account name. You'll see any bonus details on the right-hand side (or towards the middle if you're using a mobile).
Should I switch?
You should weigh up carefully whether to ditch and switch after your rate drops in October.
For context, the top easy-access account at the moment is from Coventry Building Society, which pays 1.1% and allows two penalty-free withdrawals a year. The market is changing all the time though, so:
- If you have a Marcus account with a 0.1% fixed bonus, check the top-paying accounts on Monday 12 October to see if you can get a better deal. Based on current rates, there could be a small gain from switching to a top account, but things are moving fast and this could have changed by then.
- If you have a Marcus account without a fixed bonus, you're more likely to be better off switching, though again, this could change by Monday 12 October depending on what happens to savings rates.
It's also worth considering a fixed-rate savings account – these pay more and offer added certainty, but give you less flexibility with withdrawals. See Top Savings for more info and our current top picks.