LONDON - Metro Bank has announced the launch of new high-interest savings accounts, featuring an easy-access rate of 5.22% and a one-year fixed rate of 5.91%. This move comes as part of the bank's strategy to rebuild its cash reserves following recent financial challenges, including a dip in deposits and a significant share price drop in October 2023.
The bank's competitive rates are aimed at attracting both retail and business savers. For businesses, Metro Bank is offering an easy-access account with a 4% rate for those opened in branches, and a one-year bond at 5.52%. These rates are among the top available in the market, signaling Metro Bank's aggressive stance in seeking saver funds.
This strategic shift follows an emergency fundraiser earlier in November to stabilize withdrawal rates after the bank faced temporary spikes in withdrawals. The fundraiser, which involved issuing new shares and debt refinancing, successfully raised £925 million.
The bank now manages £14.5 billion in savings, with the recent stabilization efforts seemingly restoring depositor confidence. Andrew Hagger of MoneyComms recognized Metro Bank's approach to target saver funds through competitive rates, while Anna Bowes highlighted the importance of the bank's fundraising efforts in light of past financial troubles.
Customers interested in these new savings products can initiate accounts online, although business savings products require a branch visit. To further ensure consumer confidence, customer deposits are protected by the Financial Services Compensation Scheme (FSCS), which guarantees individual deposits up to £85,000 and joint accounts up to £170,000 against potential bank failures.
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