Marcus, the first international expansion of Goldmanās new retail business, will offer the 1.5 per cent* rate on savings from Ā£1 to Ā£250,000, which makes it the highest-yielding instant-access account available, according to data company Moneyfacts.
āWeāre going out with a strong offer, we know weāll attract a lot of savers,ā Des McDaid, UK managing director of Marcus, said in an interview. āOur goal is not to compete with the small players, the goal is to move people away from the high street banks that control 80 per cent of the market.ā
Emphasis mine: variable rate of 1.50% AER, which includes a bonus rate of 0.15% gross for the first 12 months.
Anna Bowes, co-founder of Savings Champion, said: "Savers who fail to move their money from the shockingly low-paying easy access accounts on the high street are allowing themselves to be robbed.
āgoodā is a very relative term here. CPIH inflation is 2.4%, so even with GS youāll be losing nearly 1% a year of your purchasing power, something a lot of people seem to miss when arguing over a couple of fractions of a %age point here or there.
Inflation is a tax and in these days of low rates the only way to protect yourself is through investing, thereās no guarantees youāll make money but at least thereās not a guarantee youāll lose it!!!
Youāre right on this and I did think about changing it to ācompetitiveā. However, I meant good in terms of wrt other so called easy access savings accounts out there.
Iām with you on the investing but Iām also one for a balanced portfolio in oneās personal finances, which will inevitably include a cash buffer zone, be it a emergency cash fund or a rainy day fund. This product falls into this area for me of essentially a risk free asset (other than T-Bills) and cash has maximal liquidity. This is important when itās recommended you have around 3-6 months wages of liquid savings to cover yourself if youāre hit by a liquidity shock.
The above is the context for why I said good but yes, in real terms youāre losing purchasing power as ā99 per cent of savings accounts fail to beat the consumer price indexāā but in the grand scheme of personal finances & your overall portfolio this is just one factor.
Nearly all savings products fail to beat inflation:
google it; its called smart limited access, you get one withdrawal and Iām not sure about the pentaly- or if they still even offer it. But imo nationwide is the best high street bank for interest rates
yes, but at the same time, it matches inflation, so up to you, loose money with freedom, or keep it with limited access (you can withdraw anytime btw). This would be ideal for the emergency fund most people have, but admittedly, not good for much else
of course not lost on paper just purchasing power. I had a look for the account, and can no longer find it, I still have an account, so it might be worth going into a branch, martin Lewisās website has some good stuff as well
Tbh I had a hard (aka long) time sorting out my mumās savings account at Santander in branch so Iāll pass on this. Online is present and future, I donāt want to increase my interactions with branches but cheers for the tip anyhow.
Goldman is offering savers a top-of-the-market interest rate of 1.5 per cent for the first 12 months. That is still much less than the bankās wholesale cost of funding. Goldman is paying a weighted average fixed coupon of 3.86 per cent on the roughly 2,500 bonds tracked by Bloomberg, for example. Meanwhile, rising base rates are squeezing the bankās margins. Over the first six months Goldmanās interest expenses were up 55 per cent, climbing faster than the 53 per cent increase in interest income.
), I wouldnāt want to try to build a business based on this -
