Marcus, the online banking arm of investment firm Goldman Sachs, has launched a Reward Saver account that pays higher interest rates to savers who do not withdraw money each month. The account offers 4.25 per cent variable interest when funds remain untouched, but the rate falls to 3.25 per cent for any month in which a withdrawal is made.
The 4.25 per cent rate places the account among the highest-paying easy-access savings accounts available. Marcus's normal savings account offers 3.75 per cent and its tax-free cash Isa offers 4.01 per cent. The Reward Saver account can be opened with a minimum deposit of £1 and allows savers to hold up to £250,000. Interest is calculated daily and paid monthly, with customers able to manage their account online through a desktop browser or mobile app.
The account competes with other providers offering similar incentives. HSBC provides a bonus rate of 3.75 per cent on balances up to £50,000 that also rewards savers for not withdrawing, though its rate drops to 1.1 per cent in months when withdrawals occur. Cahoot's Simple Saver offers 4.52 per cent for the first 12 months before transferring to a standard rate, while Trading 212's easy-access cash Isa currently offers 4.75 per cent variable, which includes a fixed 0.9 per cent bonus for 12 months for new customers.
For savers with tax-free Isa allowance remaining, the account means those choosing a non-Isa account will receive no tax protection on their interest, as all accounts mentioned lack a tax-free wrapper and use the standard £20,000 annual Isa allowance.