Simple trick to boost your easy-access interest to a best buy rate for another year: Marcus Bank savers urged to dodge the bonus trap – here’s how…
- Goldman Sachs shook up the savings market when it launched last September
- Its 1.5% easy-access rate via Marcus has been top of savings tables ever since
- The account includes a 0.15% year-long bonus that is due to expire for savers soon, but you can roll it over for another year
Marcus Bank is close to celebrating its birthday.
Last September, the personal savings arm of banking giant Goldman Sachs shook up the savings market in Britain with an easy-access account paying 1.5 per cent.
It proved so successful that it signed up a quarter of a million customers within eight months and the bank is preparing to diversify beyond its sole current easy-access offering.
Piggy trap: Marcus shook up the savings market with its 1.5% easy account last September, but you can get the 0.15% bonus for another year in a few easy steps
Yet, while Marcus has been a fixture at the top of This is Money’s best buy savings tables since last autumn without cutting its rate at all, it is important to note that its 1.5 per cent offering does include a bonus.
After 12 months, the rate drops to 1.35 per cent, which puts it on a par with RCI Bank and Charter Savings Bank, but sees it beaten by the likes of Yorkshire Building Society and Ford Money.
However, there is a way for savers who are already getting withdrawal symptoms about the prospect of losing that table-topping rate to keep it without having to switch providers.
You can only have one Marcus account, meaning that the standard strategy of closing an account and opening a new one with the same provider will not work.
In fact, currently, you cannot open another Marcus account again, so make sure you don’t close your current one.
Instead, you can quite easily hold onto the extra 0.15 per cent of rate for another year, as Goldman Sachs pledges to pay existing savers exactly the same as new ones still within their 12 month bonus.
Marcus Bank’s 1.5% easy access rate includes a 12-month bonus of 0.15%, which normally is due to expire and would make the rate on your savings drop to 1.35%
The bonus rate does expire, but to roll it over for another year all you need to do is remember to consciously do so.
If you log into your Marcus account go onto ‘view’ and scroll down, you will see a link on the right-hand side titled ‘Review your savings’, beneath where it tells you the bonus rate expiry date.
However, if you go into your Marcus account and go to ‘Review your savings’, you have the option to roll over the bonus rate for another year, meaning you can get 1.5% for another year
If you follow that link, it will give you a page titled ‘Your bonus rate options’. It will tell you your current bonus rate and its expiry date, and you can choose to instantly roll that bonus rate over for another 12 months.
While this is incredibly easy to do, it’s possible that Goldman Sachs are banking on savers forgetting to do so, or just not doing it.
This is Money asked Goldman Sachs whether the rollover would be limited only to a small number of customers, and whether this would be open to existing savers year after year.
A spokesman from the bank said: ‘One of the key benefits of opening an account with Marcus is that all customers – both new and existing – have the opportunity to get our best available interest rate on their savings.
‘If an existing customer’s bonus has expired, they can opt into the current rate by logging in to their online account and following the instructions to renew the bonus rate.’
The difference on interest over the year can be substantial, depending on the amount of cash you hold in your Marcus account.
On a pot of £50,000, you’d earn more than £80 in interest by simply following the steps above. This is worked out on the This is Money lump sum calculator.
On £25,000, you’d forfeit nearly £40 and on £10,000 more than £15 if you didn’t act.
Not bad for a couple of minutes work and without the need to fill in paperwork to switch elsewhere.
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