Marcus, the savings brand of Goldman Sachs, has now closed its easy access account to new customers.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, comments: “The savings market has been engulfed by waves of cuts over the past few months, and Marcus’s easy access account has been washed ashore.
“These waves are self-perpetuating. The most competitive account attracts too much money, so the bank cuts back. This puts a new account in the frame, which attracts more money and then makes a cut, and so it continues.
“In the past two months we’ve seen the most competitive easy access accounts fall from around 1.3% to around 1%.
“At the moment, NS&I is standing firm at 1.16%, and anchoring accounts at around 1%. It axed planned cuts in order to support savers through the crisis, and as long as it remains committed to savers it should help hold back the tide.
“However, there are no guarantees NS&I will be able to stand firm forever. It will also be under pressure to offer value for money for taxpayers – because the government can get hold of cash far more cheaply at the moment by borrowing.”
Since Marcus launched it launched in September 2018 it was a regular fixture at the top of the savings charts, but despite cutting the rate to 1.05% it was still too popular.
It has attracted £21 billion, and it’s trying to avoid breaching £25 billion.
Once banks attract £25 billion in savings, the rules mean they have to ring-fence them away from riskier activities by the bank.
It would mean Goldman Sachs would have to keep the money separate from its investment banking arm, so it couldn’t make as much money from deposits.