Interactive Investor

New top-rate easy access savings account launched by Nottingham BS - and its rate BEATS Goldman Sachs' Marcus account

30th October 2018 11:04

Stephen Little from interactive investor

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Update: Nottingham Building Society pulled this deal two days after lauch on 31 October.

Nottingham Building Society has launched a new easy access account paying a market-leading 1.55%.

The launch comes just a month after Goldman Sachs unveiled its Marcus account.

The eSaver Instant Issue 9 account comes with a headline rate of 1.55% - beating the Marcus rate by 0.05 percentage points.

  • Goldman Sachs launches market-busting 'Marcus' 1.5% easy access savings account to take on British banks

The account requires a minimum deposit of £1,000 and can be opened online.

Interest is paid annually and you are allowed to make as many withdrawals as you like.

Tom Adams, head of research at savings advice site Savings Champion, says: “When Marcus made its account available to the general public at the end of September, we were hoping that this would stimulate competition in the easy access market and get a number of providers to up their game in response.”

He adds: “Up to this week, we had certainly seen some improved deals, but nothing to topple Marcus from its lofty perch – so the move by Nottingham Building Society is certainly a welcome one.”

  • Autumn Budget 2018: Lifetime Allowance to rise; Isa allowance to remain at £20,000

How does it compare?

Marcus shot straight to the top of the best-buy tables when it was launched in September with a rate of 1.5% - well above the average of 0.6%.

However, the Marcus account does come with a sting in the tail. The big difference between the two accounts is that Marcus comes with a bonus of 0.15% for the first 12 months. After this the rate drops to 1.35%.

However, the Marcus account can be opened with just £1 compared to £1,000 for the Nottingham eSaver.

Since the launch of Marcus competition between easy access accounts has been heating up and interest rates have been on the rise.

The next best deal out there is the Family Building Society Premium Saver at 1.45%, which you can open this account a minimum £5,000 deposit.

This is followed by the Virgin Money Double Take E-Saver Issue at 1.42%. While it only requires £1 to open the account you are limited to two withdrawals a year. Sainsbury’s has also upped its interest rate to 1.4% for deposits over £1,000.

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Mr Adams says: “Competition between providers is what pushes rates in the right direction for savers and moves like this can only be good news for savers. The only word of caution is that in the past, we have seen top rates not hang around for too long, as the provider satisfies its deposit requirements – so this may happen if others don’t up their own games in response.

“Of course, if others respond accordingly, the rates will go up even further and so the picture could look even rosier for savers going forward."

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

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