Marcus is live!

eskbanker

Happyheather wrote: »

I opened a Marcus account expecting a 1.5% savings rate and my account actually shows a 1.49% rate; this feels like a misleading rate or sharp practise to me 😩

As above, you haven't understood the difference between AER and gross interest but you won't be shortchanged if that's what you were fearing - if you put £1,000 in and keep it there for a year (without the rate changing), you'll still end up with £1,015 not £1,014.90, thanks to the compounding effect that differentiates AER and gross interest....

RG2015

eskbanker wrote: »

As above, you haven't understood the difference between AER and gross interest but you won't be shortchanged if that's what you were fearing - if you put £1,000 in and keep it there for a year (without the rate changing), you'll still end up with £1,015 not £1,014.90, thanks to the compounding effect that differentiates AER and gross interest....

Nice simple explanation but I fear many may still not get it.

It doesn't help when NatWest for example advertise their Savings Builder rate as follows:

Earn up to 1.50% AER/Gross p.a.

And they do indeed calculate monthly interest at 1.50% on the daily balance during the month.

eskbanker

RG2015 wrote: »

Nice simple explanation but I fear many may still not get it.

It doesn't help when NatWest for example advertise their Savings Builder rate as follows:

Earn up to 1.50% AER/Gross p.a.

And they do indeed calculate monthly interest at 1.50% on the daily balance during the month.

Perhaps it's an RBS Group thing, as I recall pointing out the same issue last year when Ulster Bank also erroneously quoted the same figure for both AER and (monthly-paid) gross interest....

https://forums.moneysavingexpert.com/discussion/comment/72828180#Comment_72828180