Goldman Sachs entering UK Savings market

[expressman33]

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

https://www.moneywise.co.uk/news/2018-1 ... m_content=

minimum of £1,000 needed to open account https://www.thenottingham.com/savings/p ... t-issue-9/

[macliam]

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

https://www.moneywise.co.uk/news/2018-1 ... m_content=

minimum of £1,000 needed to open account https://www.thenottingham.com/savings/p ... t-issue-9/

That's the first, there will be more.

[planteria]

more what, BSs offering 1.5%+ accounts?

[Sarah]

Interest rates being on the increase - slowly, but surely; therefore we should reasonably expect the trend to be upwards for new announcements. I personally held off considering Marcus since they're a new entrant backed by a major brand that might be tempted to offer an additional incentive to gain new customers; perhaps more likely after the initial wave of interest has passed and now they're knocked off the 'best buy' first place. Also can be worthwhile questioning how much of your savings really need to be available with easy access -- if you can use a 1 year fixed account instead then interest rates above 2% are available.

[planteria]

all good points Sarah.. i have held off too. primarily as i need access to the funds by the end of December - and i can access them, and see what the best deal is available on <12m terms, early January. but also, like you, wondering if GS will come up with an incentive. that said, incentives for current account business are fairly common, but they're rare for savings accounts ime.

[Sarah]

Nottingham BS account sold out in 2 days... bring on the next!

[planteria]

that's interesting too.. it shows, in case it were needed, that so much cash is looking for a home, and also BSs will struggle to use very much of it profitably. all that cash saved at 1.5/1.55% is losing money in real terms, of course .


our credit union, put simply, doesn't need any more cash: it would actually suit us if members withdrew on average around 70% of their savings with us: and even better if they all just borrowed a bit too .

[Sarah]

Well, we know how much Marcus have taken so far, as they've released their figures - £2.3 billion from 100,000 customers; therefore deposits averaging £23,000 each.
https://www.thisismoney.co.uk/money/new ... month.html

[expressman33]

that's interesting too.. it shows, in case it were needed, that so much cash is looking for a home, and also BSs will struggle to use very much of it profitably. all that cash saved at 1.5/1.55% is losing money in real terms, of course .

The banks are able to invest in a large range of fixed rate bonds and get better rates.

I currently have a bond which has made 6-7% for the last 3 years and is on target to do so again this year

[planteria]

interesting Sarah.. all that money was sat ready to move to a better rate home.. fwiw i think they could become a useful provider for us Stoozers, but at the rate they are attracting cash i don't think they need to offer us a further account opening incentive .

interesting that they are looking to add a CISA and investment products 'for the masses' - we shall see what they come up with.

and yes they are em.. that doesn't really argue against my point though. are the underlying investments in the Pru bond supporting those returns? do you have a link to the product please?