How to be a Goldman Sachs banker
THE mighty Goldman Sachs is set to unveil its first account for UK savers tomorrow paying a top 1.5 pc.
This is three times the average easy-access rate for new savers at 0.49 pc.
Experts say the move is already sparking some competition among other banks and building societies, who have done little for savers since the interest rate rise last month.
The new Marcus account is named after one of the American investment bank’s founders, Marcus Goldman. The interest rate is expected to be 1.5 pc. This will include a 0.15 percentage point fixed bonus for 12 months.
When this runs out, savers will just need to click a button on the bank’s website to get the extra interest for another year.
You can deposit anything between £1 and £250,000 in the account.
There are no restrictions on the number of withdrawals you make each year and your money will be covered up to £85,000 — £170,000 on joint accounts — by the UK Financial Services Compensation Scheme.
The easy-access account is only available online at marcus.co.uk with a UK-based telephone helpline, 0800 085 6789, that goes live tomorrow.
The bank has trialled the new account among its UK employees in recent weeks and plans to launch fixed-rate bonds and a cash Isa within the next 12 months.
Susan Hannums, director at advice website Savings Champion, says: ‘This account is good news for savers, as it should bring better rates from other providers.
‘Goldman Sachs has bigger pockets to take in more money than some of the other, smaller players, so the account should also be around for longer. Already, rates are on the rise ahead of the launch.’
AA Savings, for example, upped the rate for new customers in its Member Saver from 1.15 pc to 1.37 pc. It followed Kent Reliance, where the rate rose from 1.01 pc to 1.37 pc.
Yorkshire BS has also raised its Single Access Saver rate for new savers from 1.35 pc to 1.41 pc. But, like many top-paying accounts, it is not a true easy-access account because it limits you to making withdrawals — as many as you like — on just one day a year.
Virgin Money Double Take E-Saver 7 pays 1.36 pc, but you can only make two withdrawals a year, while Sainsbury’s Bank Defined Access Saver, at 1.35 pc, limits you to three.
Other providers add big bonuses for a year, after which you earn a pittance.
AA Easy Access Saver Issue 8 pays 1.36 pc but, after a year, it drops to a paltry 0.2 pc, unless you move your money.
Meanwhile, the difference between what major banks and newer providers and building societies offer has widened significantly.
Big banks have passed on as little as 0.1 percentage point out of the total 0.5-point rise in base rate since the start of November.
Among the worst is HSBC Flexible Saver, at 0.15 pc. NatWest pays 0.2 pc on sums up to £25,000 and 0.3 pc for higher amounts up to £1 million.
Halifax Everyday Saver and Lloyds Easy Saver pay as little as 0.2 pc and Barclays 0.25 pc.