Should you go American? Goldman Sachs brings its savings bank to the UK
Goldman Sachs launched Marcus in the US in 2016 as an online savings and loans bank for the masses. A far cry from its usual approach for those with major cash to invest.
It has been pretty successful, too, taking in over $20 billion (about £15.4 billion) in savings.
It has now arrived in the UK, offering a very competitive easy-access savings account. For more information about what this account offers and whether it’s for you, read on.
What savings account does Marcus offer?
Marcus only offers one account type – an easy-access savings account. It comes with the following features:
- Easy access. Unlike with some other banks, this account gives you unlimited withdrawals and deposits. It won’t affect your interest and you won’t be charged.
- Competitive interest rate. A really competitive interest rate of 1.5% AER. This is a leading rate in the easy-access account market.
- Anyone can get it. This is a savings account for everyone and anyone. Minimum savings deposit is £1.
- Maximum savings amount. This is £250,000.
- Online. Open and manage the account online.
- Telephone support. This is available during weekdays.
- Monthly interest. Interest is calculated daily but applied monthly. The interest will be added on the day of the month you opened your account. So if you opened it on the January 23, your Marcus account will be credited on the 23rd of each month.
Is the account online?
Yes – open and manage the account online. If you wish to withdraw then log into your Marcus account and transfer money to another UK account in your name (your linked account).
Likewise, if you want to deposit money you have to transfer it in from your linked account.
What you need to open a Marcus account
- You must be aged 18 or over
- Have a UK address and be resident in the UK for tax purposes
- Have a UK current account with a sort code and account number
- Have a UK mobile phone
Is Marcus safe?
Goldman Sachs International is authorised and regulated by the Financial Conduct authority. In addition, it is covered by the Financial Services Compensation Scheme (FSCS) so your savings are covered for up to £85,000 if Goldman Sachs goes bust.
Who is this savings account for?
It’s probably not for you if you can afford to put money away for a while or you have enough to make regular deposits. Regular savings or fixed-rate savings accounts typically offer better rates.
However, if you’re looking at getting an easy-access account then this one is seriously worth considering. Some other easy-access accounts will give you one or two withdrawals a year before penalising you but Marcus gives you unlimited withdrawals and deposits. In addition, its interest rate is among the best. There is one string attached: there is a 0.15% bonus for the first 12 months so your interest rate will drop after the first year. When it does, you might consider swapping to another easy-access savings accounts.