Goldman Sachs MARCUS savings account

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  • jimjames
    jimjames Posts: 17,670 Forumite
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    carlh93sky.com wrote: »
    Highest rate currently for this type of account is 1.36, with more of the rate as unvariable bonus. Ignoring this qualitative, but significant, difference, Marcus rate is 10.29% higher than "normal". To me, that percentage makes their rate qualify as "much higher".It's certainly in the loss-leader category, but con't be a ploy to entice you into a current account, as they don't offer these to personal customers, do they??

    Dread to think what your thoughts are on current accounts paying 3%-5% then!
    Remember the saying: if it looks too good to be true it almost certainly is.
  • ColdIron
    ColdIron Posts: 9,154 Forumite
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    jimjames wrote: »
    Dread to think what your thoughts are on current accounts paying 3%-5% then!
    There is no shortage of accounts paying no, or next to no, interest. Is one presume that they are much safer?
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    carlh93sky.com wrote: »
    Highest rate currently for this type of account is 1.36, with more of the rate as unvariable bonus. Ignoring this qualitative, but significant, difference, Marcus rate is 10.29% higher than "normal". To me, that percentage makes their rate qualify as "much higher".It's certainly in the loss-leader category, but con't be a ploy to entice you into a current account, as they don't offer these to personal customers, do they?

    If I fear a possible parallel between the Icelandic banks debacle and what GS are offering as a savings rate I should say so. Hopefully I'm wrong, and, even if I am right, hopefully the fall-out would not be too great for the BoE to stomach. I respect your right to take a different view from what from my suspicious nature inclines me to, but did you live through the Icelandic debacle, and its shameful outcome, as a saver?
    What matters is not what they are paying relative to other retail banks, but what they are earning on the money we have deposited with them. So long as their earnings are at least 1.5% then they are unlikely to be in trouble financially any time soon.

    And given the size of our meagre deposits relative to the amount of money they shovel around on a daily basis, that additional 0.14% is unlikely to bankrupt them.

    And if your worst fears do come to pass, and the FSCS (which is not part of the BoE) is unable to cope, and the BoE is unable to bail us out, then we have a lot more to worry about than whether we will see our Marcus deposits again.
    "In the future, everyone will be rich for 15 minutes"
  • Uxb
    Uxb Posts: 1,340 Forumite
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    I would add that HMG and the FSCS even arranged for Icesave ISA money to be repaid by the FSCS to the saver with a special guarantee.
    That was the ISA money as a lump sum could be immediately re-saved by the owner in a new ISA and not loose any of its ISA tax free status in the meantime as you might have expected.
  • isasmurf
    isasmurf Posts: 1,999 Forumite
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    carlh93sky.com wrote: »
    In the UK, the accounts, though issued by UK branches of the Icelandic banks, were NOT protected by what is now called the FSCS insurance, so account holders were theoretically left high and dry. In the event, the BoE decided to bail out UK account holders.

    Icesave was part protected by the FSCS. The first approx. £16k was covered by the Icelandic scheme with the remainder up to the FSCS limit by the FSCS. HM Treasury loaned FSCS the money to cover balances over the FSCS limit.
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    RG2015 wrote: »
    However, I do believe that it was shameful that local authorities recklessly invested public money without adequate due diligence.
    The vast majority of the money was invested following adequate due diligence. Negligence was identified in only a handful of cases where the deposits were made very close to the collapse.
    https://www.theguardian.com/society/2009/mar/26/uk-local-government-icelandic-deposits

    And through the work of Local Government finance staff and the LGA, most of the money was recovered:-
    https://www.bbc.co.uk/news/uk-politics-26052949
    (I believe this relates only to the deposits though, not the loses of expected interest on the investments.)
    "In the future, everyone will be rich for 15 minutes"
  • cloud_dog
    cloud_dog Posts: 6,063 Forumite
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    Oh good.... another Marcus thread. :T
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • RG2015
    RG2015 Posts: 5,921 Forumite
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    EachPenny, thanks for this and whilst what qualifies as ‘adequate’ is subjective, I accept that only a few were negligent.

    The point I was trying to make was that if any shame was evident it was with (some) local authorities and not the final outcome as asserted by the OP.
  • RG2015
    RG2015 Posts: 5,921 Forumite
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    cloud_dog wrote: »
    Oh good.... another Marcus thread. :T
    It would appear that like Eastenders in the eighties, everyone is talking about it.
  • eskbanker
    eskbanker Posts: 31,480 Forumite
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    carlh93sky.com wrote: »
    Two concerns:-

    1. Not available as a joint account. [...]
    2. 90% of the Marcus interest rate is variable basic [...]
    3. This is a very high rate for this sort of account in the present climate. [...]
    "And ruthless efficiency.

    And an almost fanatical devotion to the pope...." ;)
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