Experts have praised this account for its returns (Image: Getty)
Marcus by Goldman Sachs has increased the interest on its one-year fixed rate savings account by an impressive 0.55%, earning it an “excellent” rating from experts at Moneyfactscompare.co.uk. The interest rate of 4.55% is fixed for a year, guaranteeing savers decent interest earned on savings of up to £250,000. Fixed-rate savings accounts are good for those who are able to lock money away and let it gain interest, rather than those who might need instant access to their savings.
Interest is paid on maturity, and early access is permitted, but it comes at a price. Withdrawing your money within the first 90 days of opening the account means you lose the interest earned. If you withdraw from the account after the first 90 days, you will be subject to the equivalent of 90 days of interest losses. Opening the account is easy and can be done online and through the bank’s mobile app.
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Commenting on the deal, Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “Marcus by Goldman Sachs® has increased the rate on its One Year Fixed Rate Saver by a generous 0.55% this week.
“The account takes the market-leading position when compared to its peers and now pays 4.55%. Savers can deposit as little as £1 but this should be done within the first 14 days of the account opening, otherwise it will automatically close.”
She added: “Adding to its appeal, further additions are permitted for 14 days from account opening via a nominated account. Although earlier access is permitted, savers should note that this is subject to account closure only and a loss of interest penalty depending on how long the account has been open. Overall, the account receives an Excellent Moneyfacts product rating.”
Fixed-rate accounts are great for people who can lock away their money (Image: Getty)
Further additions are permitted within 14 days of opening the account via a nominated account. Joint account options are also available.
Based on the current AER of 4.55%, savers would earn £45.50 for every £1,000 they put into the account. If you were to inject £10,000 into the account, you would earn £455.
Customers need to be 18 or older to open the account. Savers also must have a UK phone number to open the account. All deposits up to £85,000 are protected under the Financial Services Compensation Scheme (FSCS).
What else is out there?
In the one-year fixed rate savings market, OakNorth Bank also has an attractive offer for those wanting to grow their savings. It currently offers an AER of 4.35% on its One Year Fixed Term Deposit account with interest paid on maturity. A minimum deposit of £1,000 is required to launch the account, and up to £500,000 can be saved.
There is also Shawbrook Bank’s 1-Year Fixed Rate Bond with its AER of 4.27%. A minimum deposit of £1,000 is required to launch the account, and up to £2m can be saved. Interest is paid on maturity.
OakNorth also has a Fixed Term Savings Account, which is a 12-month bond paid on maturity. However, its interest rate is slightly lower at 4.26%. The account can be launched with a minimum deposit of £1 and up to £500,000 can be saved.