The bank announced the availability of the cash ISA will be extended to new customers on April 14, 2021. This is in addition to being open to existing Marcus account holders.
The bank said: “We are pleased to extend the availability of our cash ISA to new customers, as well as existing account holders, as of today, [April 14, 2021].
“Our Cash ISA is an easy access ISA with a competitive interest rate of 0.40 percent AER/tax-free (variable), with no fees or charges.
“We closely monitor the deposits we hold, so phased the launch of our Cash ISA by offering it to Marcus customers initially, before expanding to new customers from today.”
The account can hold money up to a maximum deposit of £20,000 for the 2021/22 tax year.
It’s important to note this is the same as the annual ISA allowance for the current tax year.
The annual ISA allowance applies across all four different types of ISA.
The four types are cash ISAs, Lifetime ISAs, stocks and shares ISAs, and innovative finance ISAs.
It’s only possible to pay into one type of each ISA in each tax year, and the £20,000 limit can’t be exceeded across all four.
The 2021/22 tax year began on April 6, 2021, running until April 5, 2022.
As it’s easy access, there is no notice term for withdrawing money from this account.
Interest is calculated daily and then paid monthly.
Marcus currently offers two other savings accounts – both of which pay a 0.40 percent interest rate, correct at the time of writing.
Like the cash ISA, the Online Savings Account also pays a variable rate of 0.40 percent.
It’s possible to save between £1 and £250,000 with this particular account.
For those looking for more security regarding the interest rate they get, there is a fixed option.
The One Year Fixed Rate Saver pays a fixed rate of 0.40 percent AER/gross.
Up to £250,000 can be paid into the account, however money can only be added to this account in the first 14 calendar days from account opening.
There’s no limit on the number of payments made during this period, but money must be paid in at least once to keep the account open.
Money can’t be withdrawn, but the account can be closed early at any time – although savers should note there is an early closure fee.