Metro Bank: is this any good?

bubbleoflife_2

I've noticed yet another Metro Bank opening in the surrounding area where I live. The opening hours are very convenient.

I've been reading the article here http://www.moneysavingexpert.com/news/banking/2010/07/metro-bank-launch

Is this bank any good in terms of ISAs, saving accounts, customer service et all???

izools

These are their savings rates:

https://www.metrobankonline.co.uk/Documents/Interest%20Rate%20Summary%20OF%204.2%20(23.02.11).pdf

The ISA is pretty good, not market leading but not the worst by far.

It's a pity they don't have any regular savers or the such like as these often offer a great rate - my reg. saver with HSBC pays 8% AER.

jambosans

izools wrote: »

It's a pity they don't have any regular savers or the such like as these often offer a great rate - my reg. saver with HSBC pays 8% AER.

Great rate, except when you consider the amount you pay monthly for your current account to get that rate. For example, assuming you pay the maximum £250 into the account per month, after tax (basic rate), you earn £103.01 in interest per year, that's £31.54* less than the annual fee of the HSBC Advance current account**.

As the guide suggests, the First Direct offering is much better value for money.
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#special

* Based on the current promotional offer of £6 per month for the first three months, then £12.95 per month thereafter.
** No doubt you will point out the features on the account which justify the £12.95 per month, but IMO there are other package accounts out there which are cheaper, or, as is often highlighted, you can source many of the features cheaper, separately.

@OP: I'm still of the belief Metro Bank are a lot of hot air. As izools pointed out their savings rates are not market leading. The pull really is in the branch service and quick account opening, but, from a personal perspective, branch service is the least of my concerns. You've got to prioritise what you want form your bank, and not be swayed with gimmicks like printing your card in 15 minutes.

izools

jambosans wrote: »

Great rate, except when you consider the amount you pay monthly for your current account to get that rate

You're absolutely right. I only took out the Advance account to take advantage of the breakdown cover... but then failed my driving test.

It lessens the blow of having a rip-off account, when my savings earn much more - but you're right. Not worth it.

This is why I will be applying for a FD account in May. Stand little chance of getting it but hopefully my exemplary account conduct with HSBC will help my app

bubbleoflife_2

jambosans wrote: »

Great rate, except when you consider the amount you pay monthly for your current account to get that rate. For example, assuming you pay the maximum £250 into the account per month, after tax (basic rate), you earn £103.01 in interest per year, that's £31.54* less than the annual fee of the HSBC Advance current account**.
......
@OP: I'm still of the belief Metro Bank are a lot of hot air. As izools pointed out their savings rates are not market leading. The pull really is in the branch service and quick account opening, but, from a personal perspective, branch service is the least of my concerns. You've got to prioritise what you want form your bank, and not be swayed with gimmicks like printing your card in 15 minutes.

I see.... Let's see what they'll come up with in the next year or so. . 'First Direct' though, won't pay much after 1 year.

Thank you for all responses

[Deleted User]

customer service is excellent although main cs open not 24 hours (8am-8pm)
savings account pretty decent rate

proeleche

Are they any good? Yes and no.

The benefits:the quick account opening;you can print off proof of address in the branch; you are issued with your card on the spot; if you recommend someone else to open an account, you both receive £20; the lack of overseas fees/decent exchange rate.

However, when I recently used the account abroad, while I had no problems using the card anywhere (Malaysia, Hong Kong, Thailand), I encountered the problem that their systems do not update quickly enough. When making a purchase and it's approved, those particular funds are frozen and deducted from the available balance and become pending transactions, until they are posted. But when the transactions were actually posted, Metro Bank did not remove them as pending trasactions, thus every time I used my card, the funds were deducted from my available balance twice. It took several expensive phone calls and days of pestering Metro Bank to cancel off pending ransactions which they had posted.

I am not impressed after having to chase,chase,chase and being given incorrect information on several occasions, as well as not having promised calls returned. I will be looking to have reasonable costs returned (internet and calls), as well as compensation for making several days of my holiday absolutely hellish. I will post in more detail at a later point.

guli

Just deposit double the amount that you intend to spend in your holidays and you should be fine. Or have a big enough overdraft to cover the uncleared pending transactions

Leaving your balance close to zero after a withdrawal overseas is asking for it!