The Top Easy Access Savings Discussion Area

SaveTheEuro

Zopa_Trooper said:

Is anybody worried about opening the Metro account? I know your money is guaranteed by the government but if you had a lot in there and they went bust and you had to claim it back from the government scheme, I'm guessing that could take months and I'm pretty sure they wouldn't pay you any interest over that period. I like to have the highest paying account but I am a bit unsure over this one.

The Financial Services Compensation Scheme says it ‘aims to pay compensation within 7 days  of a bank or building society failing’ although I don’t think that was the case when Icesave collapsed in 2008.  

https://www.fscs.org.uk/what-we-cover/banks-building-societies/

nightowl888

Yes Zopa - I'm concerned about the metro account. Got excitied when I first see it posted but remembered from the other week that they were having some issues. I read a couple of news stories yesterday about what is happening & it made me feel quite uneasy about putting my money in their new account. From what I read the 27th November is going to be a key meeting with shareholders etc...

Freedommm

Ford money very quiet, falling behind competition? Only 4.84% ?

SaveTheEuro

nightowl888 said:

Yes Zopa - I'm concerned about the metro account. Got excitied when I first see it posted but remembered from the other week that they were having some issues. I read a couple of news stories yesterday about what is happening & it made me feel quite uneasy about putting my money in their new account. From what I read the 27th November is going to be a key meeting with shareholders etc...

There is more in the Sunday Times today.

Metro Bank put on FCA financial crime watchlist
Metro Bank has revealed that it is on the Financial Conduct Authority’s “watchlist” relating to financial crime. The high street bank said that on June 6 it “received confirmation of its position on the FCA watchlist for financial crime compliance”. Companies on the watchlist are required to address regulators’ concerns through what is known as “enhanced supervision”. The bank said the FCA was looking at the “management of financial crime within the group’s back book [existing customers] as well

Read in The Times and The Sunday Times: https://apple.news/AEuHfMrkRR4GSN6zMdTDE9w

jaceyboy

Applied for a Metro account now after reading this above has made me think twice, not sure what to do now, pull funds from Cahoot and go with Metro or leave in Cahoot

auser99

jaceyboy said:

Applied for a Metro account now after reading this above has made me think twice, not sure what to do now, pull funds from Cahoot and go with Metro or leave in Cahoot

If you're well under 85k and only after an easy access account anyway, there's very little risk surely? 

ryaneberry

auser99 said:

jaceyboy said:

Applied for a Metro account now after reading this above has made me think twice, not sure what to do now, pull funds from Cahoot and go with Metro or leave in Cahoot

If you're well under 85k and only after an easy access account anyway, there's very little risk surely? 

There’s quite literally no risk…

masonic

SaveTheEuro said:

Zopa_Trooper said:

Is anybody worried about opening the Metro account? I know your money is guaranteed by the government but if you had a lot in there and they went bust and you had to claim it back from the government scheme, I'm guessing that could take months and I'm pretty sure they wouldn't pay you any interest over that period. I like to have the highest paying account but I am a bit unsure over this one.

The Financial Services Compensation Scheme says it ‘aims to pay compensation within 7 days  of a bank or building society failing’ although I don’t think that was the case when Icesave collapsed in 2008.  

https://www.fscs.org.uk/what-we-cover/banks-building-societies/

No, it didn't happen for Icesave, but the FSCS was not obliged to pay out at all in that case as Landsbanki was not part of the UK scheme. It was also a long time ago.

More recently, we've had DotComUnity credit union fail while holding many forumite's cash ISAs, and the circumstances around that are ones that I'd be more concerned about. Starting with regulatory enforcement action that prevented it repaying savers for many weeks before it was formally declared insolvent and the FSCS was called to pay out (which it did quickly when finally given the green light). Given the concerns around Metro are of a similar (regulatory breach) nature, I'd not risk it personally.

The risk will be around not being able to access the money for a protracted period of time, not permanent loss (if keeping below the compensation limit).

friolento

I have put £500 into my Metro account now, to trigger the 5.22%. This rate should show by Tuesday, when I can wihdraw the lot again but still have a 5.22% account for a year, in case I need it. I am aware the interest rate is variable.

auser99

ryaneberry said:

auser99 said:

jaceyboy said:

Applied for a Metro account now after reading this above has made me think twice, not sure what to do now, pull funds from Cahoot and go with Metro or leave in Cahoot

If you're well under 85k and only after an easy access account anyway, there's very little risk surely? 

There’s quite literally no risk…

The post just after explains how there is a small risk - but it relates to being without your money for a short period while it's sorted out.