Cynergy Bank launches easy account to replace Virgin Money next to Marcus

Marcus Bank sat alone at the top of the easy access best buy tables for just a few hours, as Virgin Money cut its rate but Cynergy Bank matched its offering.

It looked as if the Goldman Sachs backed savings provider was set to be the last ‘bread and butter’ account paying 1.5 per cent standing, with Virgin Money launching the eleventh issue of its online Double Take E-Saver, which allows users to make two withdrawals each calendar year. 

The account now pays a lower rate of 1.43 per cent, having rubbed shoulders with Marcus since the end of last November.

However, challenger bank Cynergy this afternoon launched its own easy access account paying the same rate as Marcus, though the online only offering comes with a bonus rate that cuts the interest paid on your savings in half after 12 months.

Cynergy has previously offered 1.5 per cent on numerous occasions, and indeed just three months ago was one of four easy access accounts paying that rate, along with Marcus, Virgin Money and Nottingham Building Society’s Beehive Savings. 

Its accounts tend to be withdrawn from sale quickly when it does hit the 1.5 per cent marker, underlining that few providers have the firepower to keep pace with Marcus over the long-term.

Virgin had done so since the end of last November, but the account has now been withdrawn from sale.  

While the new account offering 1.43 per cent would amount to just 70p less paid in interest over a year on a balance of £1,000, the fall is still symbolic as for a few hours it left Marcus, which has amassed more than a quarter of a million customers, as the last easy access account standing paying 1.5 per cent. 

It is worth noting that those who signed up at the time of Marcus’ launch will be approaching the one-year anniversary of opening their account, meaning their rate will drop to 1.35 per cent as the account contains a 0.15 per cent bonus.

However you can ensure you get 1.5 per cent paid on your savings for another year with just a few clicks as revealed last week by This is Money.

Meanwhile, Virgin Money’s move means its account is now level with Principality Building Society’s Online Saver, though that account includes a 0.25 per cent bonus rate, with Shawbrook Bank’s online easy access account now the closest challenger to Marcus, paying 1.48 per cent on balances of £1,000 or more.

According to Savings Champion, those who opened the 1.5 per cent paying account with Virgin Money have an advantage over those who have been with the bank longer, with those who opened the fifth issue of the Double Take account being paid 0.3 per cent less on their savings.

Those who opened the first issue don’t do much better, earning just 1.21 per cent. 

Virgin Money also cut the rate on the Isa version of its Double Take online account, from 1.46 per cent to 1.43 per cent. Both accounts can be opened online with a minimum deposit of £1.