Marcus has launched a new one-year fixed-rate bond which has blown all competition out of the water.
The UK offshoot of US investment banking giant Goldman Sachs now offers savers 4.55 per cent, propelling it to the top of the independent This is Money best buy savings tables.
It has overtaken Union Bank of India for the top spot which was offering 4.33 per cent.
Someone stashing £10,000 in the Marcus account would earn around £455 in interest by the end of the one-year term.
The new rate replaces the 4.15 per cent rate previously on offer.
Best buy: Marcus has boosted its one-year savings deal to
The online-only account can be opened with £1 up to a maximum of £250,000 and money needs to be deposited within 14 days of opening.
Marcus, which has hooked in millions of customers since opening its doors in the UK in 2018, also offers easy-access accounts and cash Isas.
More savers are locking their savings away in fixed rate accounts in anticipation of interest rates falling.
The base rate was cut to 3.75 per cent by the Bank of England before Christmas.
James Blower, founder of website The Savings Guru says: ‘I don’t think there will be much of a premium for longer-term savings – we might see fixed-rate best buys on longer terms of two years plus in the region of 3.5 per cent to 3.75 per cent.’
While Andrew Hagger, founder of personal finance website MoneyComms says: ‘I would anticipate a best buy one-year fixed-rate bond will be around 3.7 per cent to 3.8 per cent this time next year.’
No fixed rates currently beat this Marcus offer – including two and five year fixes.
The top two year fix pays 4.2 per cent while the best five year deal pays 4.31 per cent.
Before considering a one-year fixed saver, you should make sure you already have an emergency fund in an account which you can access at ay time.
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