Metro Bank customers issued three day warning over savings accounts change

Taking out cash from ATM (British pounds)
-Credit: (Image: Getty Images/iStockphoto)

Metro Bank, a leading UK bank, is set to reduce its savings account rates to below 4% from July 8. The rate on its variable Current Limited Edition Savings account will be cut to 3.95%.

Although the savings account is no longer open to new customers, it remains active for those who registered before it was withdrawn. The rate change will affect customers who opened a Current Limited Edition Instant Access Account or an Instant Cash ISA between November 10, 2023, and February 12, 2024.

Metro Bank should have already informed affected customers about the change and when it will take effect. It should have also notified customers that it is removing the 'end date' on all Current Limited Accounts, at which point the interest rate changes - typically, this happens after a year but the bank will now inform customers if it decides to end or alter the deal they are on.

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While Metro Bank's rate was highly competitive, it wasn't the only bank offering savings rates well above 4%. Those seeking to maintain higher rates might consider looking elsewhere, reports the Manchester Evening News.

Here are some of our top picks currently available on the market:

Chase - 5.1%.

Chase is enticing both new and some existing customers with a savings rate of 5.1% AER per month. To qualify, customers must either open a Chase current account or be an existing customer who had less than £50,000 saved as of May 2 this year.

Cynergy Bank is offering a competitive 4.94% AER with its Online Easy Access Account, requiring just a £1 minimum deposit. However, the higher interest rate only applies for the first 12 months before it drops to 3.75%.

Oxbury is providing customers with a savings rate of 5.02% AER per month through its Limited Edition Easy Access Account. This account requires a minimum deposit of £20,000 and accepts a maximum deposit of £500,000.

Santander is presenting its Edge Saver with a whopping 7% monthly interest rate, requiring only a minimum deposit of £1. However, eligibility requires customers to already have a Santander Edge current account, which carries a £3 monthly fee.

To maintain the account, customers must also deposit at least £500 a month and have two or more active direct debits. The 7% rate includes a 2.5% bonus which only lasts for the first 12 months.

Ulster Bank, a subsidiary of NatWest, is offering both new and existing customers a savings rate of 5.2% AER, requiring a minimum deposit of £5,000.

Remember, it's always wise to shop around. A variety of savings accounts on the market are offering remarkably high interest rates. However, these accounts often come with varying criteria and terms for their interest rates.

Hence, it's crucial to explore the market thoroughly and sift through all the available deals to identify the one that will be most financially beneficial for you.