By 
Goldman Sachs’ consumer banking arm Marcus is withdrawing its popular easy-access account from sale in a fresh blow for embattled savers.
Marcus said that it closing the account is only a temporary measure after a stampede to take advantage of its relatively high 1.05pc interest rates pushed deposit levels up close to a regulatory limit. It hopes to relaunch the account later this year, and in the meantime existing customers can continue to access and deposit cash as normal.
Since launching in September 2018, Marcus has consistently offered one of the highest interest rates in a stagnant savings market where the major high street players such as HSBC offer rates as low as 0.1pc.
The bank said 500,000 customers have opened accounts and more than £21bn has been deposited.
However, the bank’s growth has been hampered by British financial rules which require lenders with large consumer deposits to “ring fence” them from risky activities such as investment banking.
As reported by the Telegraph in November, these rules apply when banks hold more than £25bn in customer cash – a figure that Marcus is fast approaching. If it exceeds the limit then Marcus will be forced to funnel money into far less profitable activities.
The bank’s other savings account, a one-year fixed-rate saver, was withdrawn from sale in early May but was relaunched last week. It pays 1pc interest a year to customers.
Des McDaid, of Marcus by Goldman Sachs, said: “We are temporarily not accepting new applications for our Marcus online savings account in order to manage our rate of deposit growth.
"This step will allow us to continue providing great value to our existing customers. We remain committed to expanding our UK retail business.”
The best easy-access saver currently on the market is available from Cynergy Bank, which offers 1.25pc in interest but is only available to existing customers, followed by National Savings & Investments (NS&I) Income Bonds, which pay 1.16pc.
Treasury-backed NS&I reversed a decision to cut interest rates on some of its most popular accounts in April, citing the need to support customers during the coronavirus pandemic.
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