Metro Bank model backed by banking commissionNew high street banks get endorsement

28 August 2010

Metro Bank

Metro Bank aims to open 200 branches within 10 years

The emergence of Metro Bank, which promises a new kind of banking, falls in line with one of the Future of Banking Commission's key recommendations. The Commission endorsed the idea of new banks as a way to increase competition within the sector.

The Which?-backed Future of Banking Commission (FOBC) supported the concept of new banks appearing on high streets. The FOBC report, which was submitted to Chancellor of the Exchequer George Osborne earlier this month, states: 'the lack of effective competition means consumers have not been sufficiently protected from the market failures that so frequently arise in banking and financial markets.' 

Metro Bank rates

Metro Bank, the first high street bank to open in more than a century, opens its doors to customers seven days a week. It maintains that customer service is its top priority, promising 'satisfaction guaranteed' and 'no stupid bank rules'.

The London-based bank does not pay interest on credit balances, but its overdraft rate is 15%. This compared favourably with the big high street banks, which charge 19% or more. 

To see how Metro Bank products rate, visit

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.