Savings accounts

Goldman Sachs’ new table-topping savings account – is it worth it and what’s the catch? 

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Goldman Sachs has today launched an easy access savings account that instantly topped the best buy tables.

The deal pays 1.5pc in interest, ahead of the previous best rate of 1.41pc, offered by Yorkshire Building Society. A Marcus spokesman said there were no restrictions on how many savers could apply for the deal.

However, the account may disappoint some cash-rich savers, as it offers a much lower maximum investment ceiling than its nearest rivals.

The punchy new interest rate is offered by Marcus, Goldman’s consumer arm.

Goldman is best known as an investment bank, but has been targeting consumers as well since 2016. The bank wants to make its business more diverse.

The new Marcus deal is designed to have mass appeal. Savers can open the account with just £1 and can withdraw cash however and whenever they like, with no penalties.

By comparison, the Yorkshire easy-access account requires £100 to open and savers can only make one withdrawal a year.

The third most attractive rate comes from Kent Reliance, at 1.37pc.

However, savers need £1,000 to open this account. The lender allows withdrawals with no penalties.

Marcus savings account: what are the drawbacks?

Lower savings ceiling

The maximum amount Marcus savers can put away is £250,000, considerably less than the £2m maximum offered on the Yorkshire deal, or the £1m available for Kent Reliance.

If savers have large amounts of cash, they might be better off with Yorkshire or Kent Reliance.

No branch access

Although money can be withdrawn without penalties on the new Goldman Sachs account, some savers may find the restrictions on how the account can be managed a drawback. The Marcus easy access account must be opened online, and then can only be managed online and by telephone.

If savers prefer using branches and managing their account by post, the Yorkshire deal might still be the best one.

This can be opened by post and in branch. It can be managed through those channels as well as online.

The Kent Reliance option can be opened online and in branch, and managed the same way.

Age limits

Savers must be aged 18 or over to access the Marcus account, whereas the Yorkshire and Kent Reliance deals can be opened by parents for their child at birth.

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