If you’re not an avid follower of British retail banking, you might not have noticed that last week Goldman Sachs quietly launched its Marcus savings account in the UK.
There was little fanfare beyond the press around the UK launch of Goldman’s first foray into consumer banking, after 150 years of catering to the rich and powerful around the world.
Named for one of the bank’s founders, Marcus Goldman, Marcus first launched in the US in 2016, and is part of an effort to diversify revenue sources as traditional sources of income lag. Marcus has to date written over $2 billion worth of loans in the US.
There are early signs Marcus‘ UK launch has been a success. Goldman has not yet released any data about customer numbers but Des McDaid, who is leading the project, described the number of users signing up as „stunning.“
„Numbers have exceeded even our most ambitious expectations,“ he said.
Sure, having a bank account with Goldman Sachs sounds cool, but what is Marcus actually like to use?
Business Insider decided to give the bank’s basic savings account — the only Marcus product currently available in the UK — a trial run. Here’s what we found.
Besides the backing of one of the financial world’s most recognisable names, what stands out most about Marcus‘ savings account is its interest rate — 1.5%!
That’s split into a 1.35% basic rate, and an introductory bonus rate of 0.15% for the first year of use. Goldman hasn’t given any indication if it plans to increase or decrease this rate any time soon.
Regardless of the bonus rate, 1.35% is among the best interest rates available for savers on the British high street.
Marcus‘ launch coincided with me looking for a new savings account after I finally got sick of the tiny 0.2% interest rate I was getting on my account with a major UK high street bank.
A 0.2% interest rate is so low that it’s almost pointless for saying. $10,000 in an account with that interest would give you just $10,020 by the end of the year and, after 10 years, just $10,201.
Compare that to a 1.5% rate, where after one year your savings would be worth $10,150, and $11,650 after 10 years.
Signing up for Marcus is a pretty straightforward process.
Marcus has no physical presence, so sign up must be done online. Given that the accounts are targeted at millennials, that’s probably not going to be much of an issue for prospective customers.
I set my account up on Marcus‘ launch morning in the UK, and the whole process took less than 15 minutes. I had some of my savings in the account in less than 30 minutes.
See the rest of the story at Business Insider
Source: Business insider