A major bank will cut savings rates from next week in a body blow to savers

A major British bank is cutting its savings account rates below 4% next week.

From July 8, Metro Bank will reduce the rate to 3.95%. The savings account is no longer available to new customers, but is still available to 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 10 November 2023 and 12 February 2024. Affected customers will also benefit from one of the following rates:

• 5.22% AIR
• 4.97% AIR
• 4.51% AIR
• 4.01% AIR

Affected customers should have already been notified by Metro Bank of the change, as well as when it will take effect. It should have already notified customers that it is also removing the “end date” from all Current Limited Accounts, when the interest rate is changed – it generally does this after a year, but will now tell customers if it decides to conclude or modify the business in which they are.

Other savings account options currently on the market

While Metro Bank’s rate was very competitive, it wasn’t the only bank offering savings rates well above 4%. Those looking to keep higher rates may choose to look elsewhere.

Here’s a breakdown of some of our top picks on the market.

Chase – 5.1%

Chase offers both new and existing customers a savings rate of 5.1% AER per month. To get the account, customers must first open a Chase current account or be an existing customer who had less than £50,000 saved on May 2 this year.

Cynergy Bank – 4.94%

Cynergy Bank’s Easy Access Online Account offers 4.94% AER for just a minimum deposit of £1. Interest on this account is paid at the higher rate for the first 12 months before returning to 3.75%.

Oxbury – 5.02%

Oxbury’s offers customers a savings rate of 5.02% AER per month through the limited edition of its Easy Access account. However, the account will need a minimum deposit of £20,000 and a maximum deposit of £500,000.

Santander – 7%

Santander offers the Edge Saver with an interest rate of 7% per month with just a minimum deposit of £1. However, customers must already have a current Santander Edge account to be eligible, which has a monthly fee of £3.

To keep the account, customers must also deposit at least £500 per month and have two or more active direct debits. In addition, the 7% rate is included in a 2.5% bonus that only exists in the account for the first 12 months.

Ulster Bank – – 5.2%

Ulster Bank, which is owned by NatWest, offers both new and existing customers a savings rate of 5.2% AER with a minimum deposit of £5,000.

Always shopping

There is a wide range of savings accounts on the market with impressively high interest rates. Different accounts may have different interest rate criteria and terms.

Therefore, it is important to shop around and look for all the available deals to find the one that suits you best financially.