Andrew Hagger comments on the impressive new fixed rate savings bonds launched by Metro Bank.
The range of new fixed rate bonds from Metro Bank have been priced very aggressively and this is exactly the behaviour we want to see from a challenger bank – giving it’s rivals a wake up call and hopefully driving up rates in the market.
The 1 year fixed rate bond priced at 2.10% AER is a best buy – just edging out Charter Savings Bank at 2.07% AER
The 18 month deal looks like the pick of the bunch at 2.40% AER – it blows its competitors out of the water and is way ahead of current best buys from Charter Savings Bank and Shawbrook Bank at 2.10% AER.
The 3 year Metro Fixed Rate Bond at 2.70% AER is impressive too – only beaten by Al Rayan Bank at 2.73% AER
These savings deals are available to non Metro Bank current account customers and pay the same rates for applicants in branch as online.
These savings bonds require a minimum opening balance of £500.
There will undoubtedly be huge demand for these bonds, let’s hope they remain on sale or some time to come and are not just another short term ‘headline grabber’ that we see far too often in the savings market