Goldman Sachs launches new online retail bank, Marcus

Goldman Sachs has its UK base in London's Fleet Street but will soon move to new premises

Goldman Sachs has its UK base in London's Fleet Street but will soon move to new premises

Goldman Sachs - the Wall Street investment bank - is in search of new revenue streams through its Marcus digital banking brand, which was first launched in the U.S. two years ago.

Marcus, named after Marcus Goldman - one of the founders of Goldman Sachs, plans to offer "a consistently competitive interest rate".

Now available to United Kingdom residents over the age of 18, savers can deposit from £1 to £250,000 - and withdraw their money as many times as they like, with no fees or charges. The account must be opened online by over-18s but can also be managed by telephone.

The Wall Street bank has entered the United Kingdom retail banking market with the launch of its Marcus savings account. It has since racked up $20 billion (£16 billion) in deposits and lent $3 billion to customers. "This extra boost could mark a turning point for savers who have been plagued by low rates, inspiring other challenger brands to increase their rates to be in that top spot".

Marcus is the United Kingdom savings arm of USA investment giant Goldman Sachs.

The news will come as welcome relief to savers who have been hit by rock bottom interest rates in recent years.

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The managing director of Marcus, Des McDaid, added: "Over the last decade savers have been on the wrong end of low interest rates".

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

Ms Bowes says that by taking out a top-paying account such as Marcus, you can get up to 10 times more interest in a year.

On a deposit of £85,000, that is the difference between earning either £127.50 a year or £1,275 a year. However, there is a caveat.

However the Marcus account includes a bonus of 0.15%, which is only guaranteed for 12 months. This means that after a year your rate of saving will drop to 1.35 per cent. The next highest-paying easy access savings account, from Yorkshire Building Society, offers 1.41%. "Priced at 1.50%, this easy access account heads straight to the top of the bonus market and is likely to be an attractive option".

The account offers unlimited access to funds and can be opened with a minimum investment of just £1, and the fact it pays interest monthly could be particularly pleasing for those looking to supplement their income.

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