What are the current Marcus Cash ISA rates?

What are the current Marcus ISA rates?

Marcus currently offers only one Cash ISA with a competitive interest rate of 4.30% AER (variable), thanks to a bonus rate of 0.49% AER fixed for the first 12 months, on top of its underlying rate of 3.79% AER (variable). Interest calculated daily and paid monthly, and while you can make as many withdrawals as you like, this account isn’t a “flexible” ISA. This means any money you take out can’t be replaced within your Cash ISA annual allowance; you’ll also lose the tax-free benefit on any future interest earned on the withdrawn amount. To open an account, you must be a UK resident and have a UK home address, as well as be aged over 18.

Source: https://www.marcus.co.uk/uk/en/savings/cash-isa. Current Marcus rates are accurate as of November 2024.

What is Marcus’ best ISA rate?

Marcus’ current best Cash ISA rate is 4.30% AER (variable), but this includes a 0.49% bonus which is only available for the first year. After the first 12 months, your interest rate will drop to 3.79% AER (variable).

Is Marcus a good ISA provider?

The interest rate on the Marcus Cash ISA is competitive, but you may find a more competitive rate and better terms with another provider. You can withdraw money from your Marcus Cash ISA at any point, but this isn’t a ‘flexible’ ISA. This means that the money you withdraw can’t be replaced without further reducing your tax-free allowance. Marcus also won’t let customers transfer in an existing ISA, so if you’ve already got a Cash ISA and you’d like to switch to a new provider, this one won’t be suitable.

Can I have two ISAs with Marcus?

You can only have one Marcus Cash ISA, but you could have a second Cash ISA with a different provider. 

Thanks to new ISA rules which came into effect in April 2024, you can open and pay into as many Cash ISAs as you like, as long as you don’t exceed your £20,000 a year ISA allowance. Having more than one Cash ISA could give you more flexibility and access to a broader range of provider rewards, but you may find it easier to manage your money by keeping all your tax-free savings in one place.

Saving for your first home or retirement? You can have more than one Lifetime ISA (LISA) too, but you can only pay into one LISA each year and use the bonus from one towards your first home. An exception to this is if you’re buying a house with another first-time-buyer, in which case you can have a Lifetime ISA each and use two LISA bonuses to buy a home. 

Is a Cash ISA a good place for a house deposit?

A Cash ISA can be a good place for a house deposit, but if you’re aged 18 to 39 and you’re saving for your first home, a Lifetime ISA could be even better! That’s because not only will you earn tax-free interest on your savings, you’ll get a £1 bonus from the government for every £4 you save. Save up to £4,000 of your annual ISA allowance in a Lifetime ISA each tax year and the government will boost your savings by 25%, up to £1,000 per year. If you’re able to save more than £4,000 a year towards your deposit, you could place any additional savings in a standard Cash ISA. 

Learn more: Cash ISA or Lifetime ISA. Which one should I pick?

Will Marcus increase ISA rates?

Marcus might increase its Cash ISA rate, but it may lower them instead. Many ISA providers change their interest rates based on changes to the Bank of England’s base rate. If the base rate rises, Cash ISA rates often rise too. If the base rate falls, Cash ISA rates tend to move in the same direction. Although Marcus’ 0.49% bonus rate is fixed for the first 12 months of opening your Cash ISA, its underlying rate of 4.30% AER is variable. This means the amount of interest you earn on your savings could change, even during the first 12 months. 

If you’d like to protect your savings from interest rate fluctuations, you could open a fixed-rate Cash ISA with another provider. You’ll usually need to lock your money away for a set period of time, so this type of ISA may not be suitable for short-term savings or emergency funds. 

How to find the best Cash ISA Rates

With so many providers to choose from, including traditional high-street banks, building societies, and modern app-based providers like Tembo, finding the best Cash ISA rates might seem like a challenge. A competitive interest rate can make a huge difference to your savings, but don’t forget to compare customer service quality too. You’ll also need to know how easy it is to access your money and whether your provider offers any bonuses or rewards. 

At Tembo, for example, our customers can manage their savings on our award-winning savings app. You can also expect dozens of saving tips and tricks, excellent customer service and the chance to win £1,000 cash every month!  

To get started, take a look at our guide to the best Cash ISAs in the UK

How to transfer my Marcus ISA to another provider

Transferring your Marcus ISA to another provider couldn’t be any easier. All you need to do is open a new ISA with your chosen provider and ask them to move the money for you. Transferring the money manually can impact your savings’ tax-free status and this year’s ISA allowance, so it’s better to allow your new provider to do it for you. 

For example, if you’ve saved £30,000 in a Cash ISA over a number of years and you’d like to transfer your savings to a new provider, doing the transfer yourself could use up your full £20,000 ISA allowance for that tax year. You’d then need to wait until the following tax year to move the remaining £10,000 into your new Cash ISA. Until then, you’d need to keep the money in a traditional savings account, where your interest would be taxed, and you may get a lower interest rate.