Goldman Sachs enters British savings market
S investment banking giant Goldman Sachs today entered the British savings market with a leading rate which will add to pressure on incumbents.
The bank's Marcus brand, named after one of its founders, will offer an annual equivalent rate of 1.5 per cent, which includes a 12-month bonus rate of 0.15 per cent.
The move represents the first time that Goldman products will be available to the British public.
Industry observers believe the account, backed by one of the biggest – and most controversial – names in banking, could shake up the savings industry.
However, some analysts questioned whether the market-leading position will last. Sally Francis-Miles, a spokesperson at price comparison site Moneysupermarket, said the announcement was a "refreshing change" but added that top offers on savings do not usually last more than a few days because of high demand.
The retail brand has already attracted $20bn (£15bn) in the US, where it first launched as the bank attempts to gain new revenue streams, with profitability under pressure from stricter regulation since the financial crisis. In the US Marcus has also started to offer consumer loans of up to $30,000.
The brand, which is named "Marcus by Goldman Sachs" on its website, will accept instant-access deposits of between £1 and £250,000 through its online portal, although it will also offer weekday telephone support.
"The account is going to make a splash," said Sarah Coles, personal finance analyst at retail broker Hargreaves Lansdown. "Many savers have stayed with an old savings account because they can’t see the point of moving while rates are low. Around a third of the money in easy access accounts hasn’t been switched for at least five years."
Des McDaid, Marcus managing director, said "savers have been on the wrong end of low interest rates" over the past decade.