Metro Bank

friolento

When you first open the instant access savings account, it shows with a rate of 1.64%. The working day after you have deposited at least £500, it changes to 5.1%, and it stays at 5.1% (variable) for the first 12 months even if your balance goes below £500.

scubado2

I'm not sure that it even offers the best rate.  The (no longer available) Santander one offered 5.20% AER, as does Ulster Bank at the time of writing this.

Metro advertises 5.22% AER which equates to 5.10% gross, however within my account I found that the app quotes the rate as 5.10% AER (which would equate to a considerably less attractive 4.98% gross).  I don't know if this is a typo by whoever set the app up, but frankly I'm wary of trusting a bank capable of such a glaring error and my funds are now back to the safety of Santander and Ulster.

friolento

scubado2 said:

I'm not sure that it even offers the best rate.  The (no longer available) Santander one offered 5.20% AER, as does Ulster Bank at the time of writing this.

Metro advertises 5.22% AER which equates to 5.10% gross, however within my account I found that the app quotes the rate as 5.10% AER (which would equate to a considerably less attractive 4.98% gross).  I don't know if this is a typo by whoever set the app up, but frankly I'm wary of trusting a bank capable of such a glaring error and my funds are now back to the safety of Santander and Ulster.

5.1% wouldn't be an error if it represented the gross rate - which it is. Interest is paid monthly @ 5.1% and compounds to 5.22% if you leave the interest in the account.

scubado2

friolento said:

scubado2 said:

I'm not sure that it even offers the best rate.  The (no longer available) Santander one offered 5.20% AER, as does Ulster Bank at the time of writing this.

Metro advertises 5.22% AER which equates to 5.10% gross, however within my account I found that the app quotes the rate as 5.10% AER (which would equate to a considerably less attractive 4.98% gross).  I don't know if this is a typo by whoever set the app up, but frankly I'm wary of trusting a bank capable of such a glaring error and my funds are now back to the safety of Santander and Ulster.

5.1% wouldn't be an error if it represented the gross rate - which it is. Interest is paid monthly @ 5.1% and compounds to 5.22% if you leave the interest in the account.

I agree, but that isn't what the app says.  It doesn't simply say 5.10%, it actually says 5.10% AER (in full).  That is just plain wrong, and leads me to question what rate Metro are actually basing their interest calculations on. 

If the AER really is 5.10% then that would suggest they are basing their calculations on a 4.98% gross rate.  If they are using 5.10% then the app should show either "5.10% GROSS" or "5.22% AER" (or both). Either way it is unbelievably shoddy from a bank. 

friolento

scubado2 said:

friolento said:

scubado2 said:

I'm not sure that it even offers the best rate.  The (no longer available) Santander one offered 5.20% AER, as does Ulster Bank at the time of writing this.

Metro advertises 5.22% AER which equates to 5.10% gross, however within my account I found that the app quotes the rate as 5.10% AER (which would equate to a considerably less attractive 4.98% gross).  I don't know if this is a typo by whoever set the app up, but frankly I'm wary of trusting a bank capable of such a glaring error and my funds are now back to the safety of Santander and Ulster.

5.1% wouldn't be an error if it represented the gross rate - which it is. Interest is paid monthly @ 5.1% and compounds to 5.22% if you leave the interest in the account.

I agree, but that isn't what the app says.  It doesn't simply say 5.10%, it actually says 5.10% AER (in full).  That is just plain wrong, and leads me to question what rate Metro are actually basing their interest calculations on. 

If the AER really is 5.10% then that would suggest they are basing their calculations on a 4.98% gross rate.  If they are using 5.10% then the app should show either "5.10% GROSS" or "5.22% AER" (or both). Either way it is unbelievably shoddy from a bank. 

I agree. They must have added the AER-bit as it wasn't there originally but it is now. Very wrong.

flaneurs_lobster

friolento said:

scubado2 said:

friolento said:

scubado2 said:

I'm not sure that it even offers the best rate.  The (no longer available) Santander one offered 5.20% AER, as does Ulster Bank at the time of writing this.

Metro advertises 5.22% AER which equates to 5.10% gross, however within my account I found that the app quotes the rate as 5.10% AER (which would equate to a considerably less attractive 4.98% gross).  I don't know if this is a typo by whoever set the app up, but frankly I'm wary of trusting a bank capable of such a glaring error and my funds are now back to the safety of Santander and Ulster.

5.1% wouldn't be an error if it represented the gross rate - which it is. Interest is paid monthly @ 5.1% and compounds to 5.22% if you leave the interest in the account.

I agree, but that isn't what the app says.  It doesn't simply say 5.10%, it actually says 5.10% AER (in full).  That is just plain wrong, and leads me to question what rate Metro are actually basing their interest calculations on. 

If the AER really is 5.10% then that would suggest they are basing their calculations on a 4.98% gross rate.  If they are using 5.10% then the app should show either "5.10% GROSS" or "5.22% AER" (or both). Either way it is unbelievably shoddy from a bank. 

I agree. They must have added the AER-bit as it wasn't there originally but it is now. Very wrong.

This, together with a post elsewhere that reports that a teller and a branch manager where unable to explain the difference between APR/Gross figures on monthly/annual interest payments to a potential customer make me wonder about this Bank's overall professionalism. 

ColdIron

I suspect that:

'a teller and a branch manager where unable to explain the difference between APR/Gross figures on monthly/annual interest payments' to the OP's satisfaction

would be closer to the truth, 62 posts and the thread is still going strong

RedImp_2

Just perusing options for a 1 year fix, but got me thinking of a hypothetical question on protection when looking at Metro Bank.  Say you had £80k invested in a 1 year bond and interest paid annually.  If in the unlikely event of them going belly up 9 months into the term, is it the £80k protected or would you potentially be covered for 75% of the annual interest earned as well?

ColdIron

You would be protected up to £85,000 which would include your interest. Where are you getting 75% from? I may have misunderstood your question

Middle_of_the_Road

 ColdIron said:

You would be protected up to £85,000 which would include your interest. Where are you getting 75% from? I may have misunderstood your question

75% would be the 9 months RedImp_2 mentioned-

"If in the unlikely event of them going belly up 9 months into the term"