Metro Bank Cash ISA - 3.25%

Fingerbobs

Was in the Metro Bank today, and noticed that they're giving 3.25% on their 1-year fixed-term cash ISA.

Admittedlty it's not Instant Access and there is a hefty penalty for early withdrawals, but still sounds like a good rate to me and equals the Leeds BS offering on the MSE Top Cash ISAs list. Is there another catch I've missed?

https://www.metrobankonline.co.uk/Personal/Savings/Fixed-Term-Cash-ISA/

Gordon_the_Moron

Can't see a catch but Chelsea Building Society and Northern Rock both offer 3.3% for a year, the interest penalties for early closure are also smaller (90 days for Chelsea and 60 days for Northern Rock) if you are likely to need access after a year or think rates will go up by then I'd go for one of these, if not go for a longer fix with a better rate.

Fingerbobs

Thanks Gordon.

So it's pretty good, but not quite the best deal out there.

I guess for a product like this, that you tend to just fill up with money and then forget about for a year, the convenience of a local branch doesn't mean much.

Gordon_the_Moron

A local branch is neither here nor there to me, online access is a bonus but I'd rather have no online access than sacrifice rate or have a heavier withdrawal penalty.