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Metro Bank calls for transparency of savings products

1st February 2012

"It's time for banks to end teaser rates, and be honest with their customers"

Metro Bank, Britain's revolutionary high street retail bank, today calls on other lenders to follow their lead by promoting transparency in their savings rates, and to stop offering teaser rates in order to attract deposits.

Of the five instant access ISA products currently top of the Moneyfacts Instant Access chart, four offer an introductory rate that drops dramatically after a set period, by an average of 1.7%*, leaving savers with a very different rate to the one they signed up for.

Craig Donaldson, Chief Executive at Metro Bank commented: "Savers deserve and should demand transparency and to be dealt with on a level playing field. Consumers should be wary of banks that resort to short term ‘bonuses' to exaggerate their headline savings rates, and look for clarity and consistency in their products. It's time for banks to end easily misunderstood savings rates, and be straightforward with their customers.

"We're challenging other providers to develop consistent products that are simple, great value products for savers who want to be able to rely on and trust their bank."

This month Metro Bank broadened its range of services by introducing online applications for two of its transparent and competitive products. For the first time customers can experience the benefits of being a Metro Bank customer and can apply for 3.25% online 1 Year Fixed Rate Cash ISA and a 2.35% Instant Access Cash ISA, without the need to visit one of its stores.

The 1 Year Fixed Rate Cash ISA, which can be opened online, offers customers the following:

  • Earn interest of 3.25% AER / Gross** p.a.
  • Great rate fixed for 1 year
  • One lump sum deposit up to £5,340 in 2011/12 tax year plus transfers
  • Online and telephone banking
  • Monthly Statements

The Instant Access Cash ISA offers savers the following:

  • Earn interest of 2.35% AER / Gross** p.a.
  • Guaranteed to track Base Rate increases until 2/1/13
  • Save with lump sums and regular payments to build up your savings
  • Easy access to your money
  • Online and telephone banking
  • Monthly Statements