Britain’s newest bank, Metro Bank, launches today and offers a range of savings accounts, including instant-access accounts, children’s savings and fixed-term bonds. Here, Which? experts give their opinion on the new products and how they stack up.
Instant-access savings accounts
- Metro Bank says: No small print, no gimmicks – it will offer one single rate of 0.5% EAR for all customers. There’s also the promise of seven day access by phone, Internet or face-to-face.
- Which? verdict: This is a below average rate of interest. Based on savings of £1,000, the current overall average of all instant-access savings accounts is 0.79%.
Fixed-term savings accounts
- Metro Bank says: 2.5% EAR for one-year fixed-rate accounts and 3% EAR for three-year fixed-rate products.
- Which? verdict: Metro Bank’s rate of 2.5% falls just outside our Best Rate table of the top 20 one-year fixed-rate accounts. The current market leader is ICICI Bank’s HiSave Fixed Rate account, which offers a rate of 3.10% on deposits of £1,000 or more.
- Metro Bank says: A rate of 1% EAR to ‘get children into the habit of saving early in life’. There’s also the offer of a free Metro Bank money box and the ability to turn your coins into cash for free in the bank’s Magic Money machines.
- Which? verdict: This is a below average rate – the current market average is 1.16%. Northern Rock’s branch-based Little Rock account currently tops our Best Rate table for children’s savings with a rate of 3% on deposits of £10 and above.
- Metro Bank will be launching variable and fixed-rate Isas in October 2010, which will be supported by its personal switching service. In the meantime, if you’re looking for a cash Isa paying a good rate of interest, check out our Best Rate cash Isas review.
Get the best savings account for you
To find the best savings account for you, and discover which banks are best for customer service, read Which? savings reviews. If you’re looking to tie your money up for longer, check out our Best Rate fixed-term savings accounts.
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