A 1.5 per cent easy-access savings account offered by Marcus Bank, an offshoot of Goldman Sachs, has seen huge demand from interest-starved savers.
It says 50,000 British customers have opened the account in just 10 days, making it one of the most popular savings launches in recent times.
Those who closely watch the savings market may fear that this could also mean the account is pulled quickly if Marcus meets internal targets – although, in the US, where it launched savings accounts in 2016, it has raked in huge numbers of deposits and still offers top rates.
Huge demand: Savers have gobbled up the 1.5% easy-access rate from Marcus Bank by Goldman Sachs
Marcus has given no indication of pulling the rate, but a slew of challenger bank best buy savings have been closed in recent years after savers flocked to them.
Today, the Marcus Twitter account said: ‘We’re excited to have welcomed 50,000 new customers to the Marcus family in the UK. We look forward to helping you reach your savings goals.’
Marcus’ 1.5 per cent rate is more than three times the average easy-access rate for new savers.
Despite Marcus offering nowhere near the rate of inflation, which is currently 2.7 per cent according to the Consumer Prices Index, demand has been huge.
The account can only be opened online and with a minimum opening balance of £1. The rate includes a 0.15 percentage point bonus payable for 12 months.
Des McDaid, managing director of Marcus, said: ‘We’ve been astounded by reaching 50,000 account sign-ups in just over a week since our launch.
‘It’s exceeded our most ambitious expectations – and frankly, it sends a clear message to the market that savers are hugely frustrated with low interest rates.
‘People work hard for their money, so finally it’s time for their savings to work harder for them.’
This is Money revealed back in July the plans for Marcus Bank and the promise to shake-up the easy-access savings market.
This has been a long neglected part of savings, with many challengers choosing to battle it out in the fixed-rate arena instead.
Goldman Sachs is the fifth-biggest bank in the US and a name synonymous with the subprime mortgage crisis.
Update: Marcus Bank posted this onto its Twitter feed after attracting vast numbers of savers
The challenger bank offshoot is named after the investment banking giant’s founder, Marcus Goldman, who was born in Germany in 1821 and emigrated to the US in 1848.
This launch marks the first international expansion of Marcus by Goldman Sachs since it began operating in the US in 2016, with Germany its third target market.
The accounts it offers in the US have proved incredibly popular. Within an 18 month period, it garnered a mammoth $22billion in deposits and approved $3billion in personal loans.
The digital-only bank can afford to offer good rates, thanks to a large subsidy from its parent company and is likely to look to grow quickly over here.