Major high street bank cuts savings interest rates to sub-4% in blow to customers - are you affected?

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Interest rates attached to the bank's Current Limited Edition will be cut from today

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Temi Laleye

By Temi Laleye


Published: 08/07/2024

- 09:49

Interest rates attached to the bank's Current Limited Edition will be cut from today

Metro Bank has slashed its savings account rates to below four per cent in a blow for customers.

From today, July 8, customers using its Current Limited Edition Savings account will now only benefit from 3.95 per cent


The savings account is no longer available to new customers, however, it still exists for those who signed up for it before it was taken off the market.

Customers affected by the rate will be those who opened a Current Limited Edition Instant Access Account or an Instant Cash ISA between November 10, 2023 and February 12, 2024.

Customers will also be earning one of the following rates: 5.22 per cent AER, 4.97 per cent AER, 4.51 per cent AER or 4.01 per cent AER.

Affected customers should have already been notified by Metro Bank of the change as well as when it will come into place.

Metro Bank logo outside bank branch

Savers who want to earn more can move their money into a different account

PA


Furthermore, Metro Bank has informed customers that it is removing the “end date” on all Current Limited Accounts at which point the interest rate is changed.

Usually, the bank ends limited edition interest rates after a year but Metro will now tell customers if it decides to end or change the deal they are on.

Savers who want to earn more can move their money into a different account.

Metro has other savings accounts options available while other banks also offer a competitive rate.

Nearly a fifth of people admit to having never checked what rate of interest they are earning on their savings.

More than £366billion is languishing in UK current and savings accounts earning returns of one per cent or less, according to analysis.

In January, Yorkshire Building Society and data consultancy CACI estimated there was £380 billion held in accounts paying one per cent or less.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “Consumers will have different reasons for why they save and how.

"But it is essential they check that their account is paying a decent return of interest on their hard-earned cash.

“Loyalty does not always pay and the convenience of stashing cash in a current account means many savers are getting little to no interest.

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"Interest rates have changed considerably over the past 12 months but if someone does not proactively switch, they could be losing money in real terms due to inflation.”

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