Goldman Sachs Marcus 1 Year Fixed Saver 1.45%

dcs34

Not seen a post about this anywhere else, apologies if it's old news etc.

For those about to lose the ~1.5% on their Marcus Online Saver, a (new?) fixed term product paying 1.45% has been launched:

• Up to £250,000
• Fund within first 14 days after opening
• Can close at any time prior to maturity. Fee payable is 90 days of interest. So in these troublesome times if you did need to draw upon the money locked away, you wouldn't take a hit on the amount you'd started with (I think. Reading the T&Cs it is clear the 'fee' is an amount equivalent to 90 days interest, it is not clear whether this is taken after interest is added, or net).

https://www.marcus.co.uk/uk/en/savings/fixed-term-saver

soulsaver

This is unusual: ".. you can’t make withdrawals but you can ask us to close your account early at any time. There is an early closure fee. If you close your account within the first 90 days, the fee will be equal to the interest you’ve earned so far. If you close your account after that point, the fee will be equal to the interest you earned during those first 90 days."

So no loss of capital.

dcs34

soulsaver said:

This is unusual: ".. you can’t make withdrawals but you can ask us to close your account early at any time. There is an early closure fee. If you close your account within the first 90 days, the fee will be equal to the interest you’ve earned so far. If you close your account after that point, the fee will be equal to the interest you earned during those first 90 days."

So no loss of capital.

Having read it back again, the assumption is they'll take the fee off having first given you the interest due for the amount. It is not actually clear that interest will be paid if the account is closed early. So it might be worth clarification with GS that the account can be closed without loss of capital, and if closed after 90 days will still earn interest less the 90 day fee.

bowlhead99

dcs34 said:

soulsaver said:

This is unusual: ".. you can’t make withdrawals but you can ask us to close your account early at any time. There is an early closure fee. If you close your account within the first 90 days, the fee will be equal to the interest you’ve earned so far. If you close your account after that point, the fee will be equal to the interest you earned during those first 90 days."

So no loss of capital.

Having read it back again, the assumption is they'll take the fee off having first given you the interest due for the amount. It is not actually clear that interest will be paid if the account is closed early. So it might be worth clarification with GS that the account can be closed without loss of capital, and if closed after 90 days will still earn interest less the 90 day fee.

The standard terms and conditions mean that you earn interest daily. In the first 90 days the fee to close is the interest you earned so far, so you would not lose capital, only an amount equal to the interest you had been earning up to that point. If you close it after 90 days, you will have been earning interest for more than 90 days but the fee is only the interest you earned during the first 90 days. So you would be left with your capital plus some interest on top. I don't see how this is contentious or worthy of making some effort to clarify with them.