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Marcus Savings account: rates, features and more
Saving for retirement, a rainy day or something specific like a house, car or holiday? Whatever you have in mind, a savings account with a decent interest rate could be just what you need.
Marcus by Goldman Sachs is one of the providers you’re likely to come across when searching for and comparing savings accounts.
But is it the right option for you? In this guide, we’ll run through the different Marcus savings account types, including interest rates and how to apply for an account.
Want to earn a return in multiple currencies? With Wise Interest, you can get a 4.82% variable rate on your GBP balance held in your Wise multi-currency account.
Capital at risk. Current rates do not guarantee future growth.
Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds.
What is a savings account?
A UK savings account is a safe place to put your money and earn interest on it, so it gradually increases in value. The interest is paid by the bank or building society providing the account, and can be at a fixed or a variable rate.
There are a few different types of savings account you can choose from to suit your needs. Your choice may depend on how much you can save, whether you can commit to a regular deposit and whether you need easy access to your money.
Some of the most popular types of savings account in the UK include:
- Easy access - these offer instant access to your money whenever you need it, with no fees or penalties for withdrawals
- Fixed-rate - these accounts offer higher interest rates if you can ‘lock away’ your money for a fixed period of time (i.e. 1-5 years)
- Notice accounts - these give you access to your money, but only if you provide a pre-agreed amount of notice (i.e. 2 months).
- Regular savers - these accounts require a regular deposit each month, up to a maximum sum.
- Cash ISAs - these accounts let you earn tax-free interest on your savings up to a certain threshold.
Why open a savings account at all? There are a number of reasons, starting with having a financial safety net. With surplus income earning interest, you can build up a nest egg for later life or just in case you lose your job.
People also open savings accounts because they’re saving towards a particular goal, such as a deposit on a property purchase or the holiday of a lifetime.
How do savings accounts work?
The bank is effectively ‘hiring’ your money when you deposit it into a savings account, which is why it pays you interest.
The provider can then use it to lend out to other people, or for investment purposes. You’ll still be able to access all of your money if you need it though, as there are strict rules about how much banks and building societies can lend out at any one time.
But is your money safe in a savings account? As you might keep large sums or even your life savings in such an account, this is a crucial question to ask.
The good news is that UK savings accounts usually come with protection from the government’s Financial Services Compensation Scheme (FSCS). Just in case the bank or building society collapses, the FSCS will provide cover for up to £85,000 of your money (£170,000 for joint accounts)¹.
Marcus savings accounts overview
Marcus by Goldman Sachs is primarily known for its most popular savings solution - the Marcus Online Savings Account. This has become known for its simple, straightforward features, easy online management and competitive interest rates.
But not everyone realises that the provider also offers a couple of other options, including a 1 Year Fixed Rate Saver and a Cash ISA. We’ll run through all of these account types next, followed by a handy at-a-glance table of interest rates.
Types of Marcus savings accounts
Marcus by Goldman Sachs offers just three simple savings accounts - an instant access account, fixed rate saver and a Cash ISA.
Marcus Online Savings Account²
The provider’s most popular account, this straightforward instant access saver can be opened with just £1 and managed wholly online or via the Marcus mobile banking app.
There are no fees or charges related to the Marcus Online Savings Account, and you’ll get a competitive variable interest rate with a bonus fixed rate bolted on for your first 12 months.
Marcus 1 Year Fixed Rate Saver³
If you want to know exactly how much you’ll earn from your savings, you can avoid interest rate fluctuations with this 1 Year Fixed Rate Saver. It offers a guaranteed interest rate for 12 months, in return for locking away your money. This means you can’t make any withdrawals without closing the account (which could incur an early closure fee).
Once the account is open, you’ll have just 14 days to deposit anywhere up to £250,000 before the account is ‘locked down’ for the year.
Marcus Cash ISA⁴
Marcus by Goldman Sachs also has its own Cash ISA, for tax-free interest on your savings. There are no fees or charges to worry about, and you’ll get a competitive variable rate which includes a fixed bonus for the first 12 months - just like the Marcus Online Savings Account. Interest is worked out daily, but paid on a monthly basis.
Marcus savings account interest rates
And now we come to the most important part - how much interest does Marcus by Goldman Sachs offer on its savings accounts? Check out the table below for interest rates for each account type.
| Account | Interest rate |
|---|---|
| Marcus Online Savings Account² | 0.70% AER/gross (variable) - including bonus rate of 0.10% gross (fixed) for 12 months |
| Marcus 1 Year Fixed Rate Saver³ | 0.60% AER/gross (fixed) |
| Marcus Cash ISA⁴ | 0.70% AER/tax free (variable) - including bonus rate of 0.10% tax-free (fixed) for 12 months |
How to open a savings account with Marcus
You can apply for all Marcus by Goldman Sachs savings accounts online, with just a few details. These include³:
- Your email address
- Mobile phone number
- Details of a UK current account in your name - for deposits and withdrawals
- National Insurance number (for Marcus Cash ISA)⁴.
You can also provide limited instructions by phone.
Sources used for this article:
Sources checked on 22-03-2022.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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