Major UK bank to slash savings rates below 4% next week | Personal Finance | Finance
A major British bank is set to reduce its savings account rates to below 4% next week. Starting from July 8, Metro Bank will decrease the rate on its variable Current Limited Edition Savings account to 3.95%.
Although this savings account is no longer open to new customers, it remains active for those who registered before it was withdrawn from the market.
The rate cut 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. These customers will also be on one of the following rates:.
- 5.22% AER
- 4.97% AER
- 4.51% AER
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.
Other savings account options currently available. 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.
Here’s a rundown of some of our top picks currently available.
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 on May 2 of this year.
Cynergy Bank – 4.94%
Cynergy Bank is offering a competitive 4.94% AER with its Online Easy Access Account, requiring just a £1 minimum deposit. However, the interest rate drops to 3.75% after the first 12 months.
Oxbury – 5.02%
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 hefty minimum deposit of £20,000 and caps at a maximum deposit of £500,000.
Santander – 7%
Santander is luring customers with a whopping 7% monthly interest rate with its Edge Saver account.
Customers must already have a Santander Edge current account, which carries a £3 monthly fee, and they must deposit at least £500 a month and maintain two or more active direct debits.
Additionally, the 7% rate includes a 2.5% bonus that only lasts for the first 12 months.
Ulster Bank- – 5.2%
Ulster Bank, a subsidiary of NatWest, is offering both new and existing customers a savings rate of 5.2% AER, provided they can make a minimum deposit of £5,000.
Remember, it’s always wise to shop around
A plethora of savings accounts on the market boast attractive high interest rates. However, these accounts often come with varying criteria and terms for their interest rates.
Hence, it’s crucial to scour the market and sift through all the available deals to pinpoint the one that will be most financially beneficial for you.
