More than 50,000 savers have opened accounts with Goldman Sachs’ new retail bank, Marcus, within ten days of the bank’s launch in the UK.
In the latest sign that savers are fed up with the ongoing low interest rate environment, tens of thousands of consumers were successfully tempted by the chart-topping 1.5 per cent interest rate being offered on Marcus’ easy access savings account.
This rate includes a 0.15 per cent bonus which expires after one year, and customers can save anything between £1 and £250,000 in the account, with no fees or charges.
“We’ve been astounded by reaching 50,000 account sign-ups in just over a week since our launch,” said Des McDaid, managing director of Marcus. “It’s exceeded our most ambitious expectations – and frankly, it sends a clear message to the market that savers are hugely frustrated with low interest rates.
“People work hard for their money, so finally it’s time for their savings to work harder for them.”
Marcus now offers the highest easy-access savings rate in the UK, with the next best rate coming from Yorkshire Building Society, which pays 1.41 per cent but only allows one withdrawal per year. Charter Savings Bank and Shawbrook Bank both offer 1.4 per cent for their easy access savings accounts.
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Savers have been struggling with low interest rates ever since the global financial crisis, when the base rate was lowered to 0.5 per cent. It then dropped to 0.25 per cent after the Brexit vote, before rising again to 0.75 per cent earlier this year.
However, banks and building societies have been slow to pass on the higher rate to savers, with the majority of branches keeping their easy access savings rates below one per cent. In August, a Moneyfacts analysis found that the average instant-access savings account paid just 0.52 per cent.
Marcus was officially launched in the UK on 27 September with a promise to disrupt the savings landscape and offer better value for savers. It is named after Marcus Goldman, the founder of investment bank Goldman Sachs.
While the bank currently offers just one savings product, there are plans to expand this range and offer personal lending services as well.