17 hours ago
Savings app Marcus launches one-year fix with top interest rate
Marcus has launched a new one-year fixed-rate bond paying a table-topping rate.
The UK savings offshoot of US investment banking giant Goldman Sachs, will offer savers 4.55 per cent interest, propelling it to the top of the best-buy tables alongside Cynergy Bank which also pays 4.55 per cent.
Someone stashing £10,000 in this account would earn around £465 in interest by the end of the one-year term.
Savers can only get this rate if they open the one-year fixed-rate bond from today 27 June, however. Savers who opened this account before then will not receive a boosted rate and their rate will remain at 4.15 per cent.
A maximum of £250,000 can be deposited in the account within 14 days of opening it and the account can be opened online.
Marcus, which has hooked in millions of customers since opening its doors in the UK in 2018, also offers easy-access accounts and cash Isas.
> One-year fixed savings accounts: Find the best-buy rates
More savers are locking their savings away in fixed rate accounts in anticipation of interest rates falling, according to research from Marcus.
One in five savers moved their money from an easy-access account to a fixed-rate account to secure a better rate, it said.
The base rate was held at 4.25 per cent by the Bank of England last week.
If it falls to 4 per cent or 3.75 per cent by the end of this year as markets are currently predicting, fixed-rate bonds and Isas are the savings accounts most likely to be in the firing line.
James Blower, founder of savings website The Savings Guru said: 'I can't see any reason for rates to do anything but fall in the second half of 2025.
'Expect one-year best-buys to fall to around the 4.25 per cent mark by the end of the summer if the base rate is cut in August.'
For this reason, one-year fixed-rate accounts offering rates above this including the Marcus and Cynergy Bank accounts look very attractive.
