1. The Savings Rate Showdown: Why This Matters
Let me tell you about my neighbour Dave. Last year, he left £50,000 sitting in his high street bank account earning 0.5%. When I showed him he could get 5%+ elsewhere, he nearly choked on his tea. That's £2,250 extra per year he's now earning enough for a nice holiday! This is why choosing between NS&I and Marcus matters right now.
2. Meet the Competitors: Quick Profiles
NS&I (National Savings & Investments)
The government's own savings bank
100% safe (your money's backed by HM Treasury)
Offers Premium Bonds and fixed-rate accounts
Marcus by Goldman Sachs
Run by the Wall Street giant
Easy-access savings leader for years
Known for competitive rates and no nonsense
3. The Rate Comparison: Today's Numbers
Here's what you'd actually earn on £20,000 today:
| Account Type | NS&I Rate | Marcus Rate | Difference on £20K |
|---|---|---|---|
| Easy Access | 3.65% | 4.75% | £220 more with Marcus |
| 1-Year Fixed | 4.75% | 5.15% | £80 more with Marcus |
| Premium Bonds | 4.65%* | N/A | *Average prize rate |
*Premium Bonds are a lottery you might win big or get nothing
4. The Hidden Factors Most People Miss
A) The Tax Trap
NS&I's big advantage: Interest is tax-free on Premium Bonds
Marcus pays gross interest bad news if you're a higher-rate taxpayer
B) Access Rules
Marcus lets you withdraw anytime
NS&I fixed accounts lock your money away
C) The "Rate Change" Game
Marcus often leads when rates rise, but NS&I sometimes surprises with late boosts
5. Who Should Choose NS&I?
✔ If you've maxed your £1,000/£500 savings allowance
✔ If you like the thrill of potentially winning big (Premium Bonds)
✔ If you want 100% government-backed security
Real example: My aunt Marge keeps £50k in Premium Bonds. Last year she won £1,000 equivalent to 2% interest plus the excitement factor!
6. Who Should Pick Marcus?
✔ If you want the highest guaranteed returns right now
✔ If you need instant access without penalties
✔ If you prefer straightforward banking without gimmicks
Real example: My colleague Raj moved £30k to Marcus last June. At 4.75%, he's earned £1,425 in a year enough for his season ticket.
7. Your Action Plan: What to Do Today
Check your current rate - Log into your existing savings
Do the maths - Use the MoneySavingExpert savings calculator
Consider splitting - Maybe £20k in Marcus for interest + £10k in Premium Bonds for fun
Mark your calendar - Check rates again in 3 months
Pro tip: Set up a Marcus account now even if you're not ready to move money their best rates sometimes appear for existing customers first.
The Bottom Line
Right now, Marcus generally wins on pure interest rates. But NS&I has unique benefits that might suit you better. The key is to actually move your money unlike 60% of Brits who still have savings earning less than 1%!
Remember: £10,000 at 4.75% makes £475 in a year. At 0.5%? Just £50. That £425 difference could pay for:
A weekend break
Half a new laptop
6 months of gym membership
Don't let your money laze about make it work for you!