The first high street bank to launch in over 100 years threw open its doors to customers this morning. Metro Bank has only one branch so far in Holborn, London. But it has big plans to expand, aiming to open 200 branches in the next decade.
Metro Bank hopes to attract customers with longer opening hours, fantastic service and a simple range of products. It's certainly delivering on opening hours - the Holborn branch will be open 8am-8pm on weekdays and will also open on weekends. It aims only to close on four days of the year Christmas Day, New Year's Day, Good Friday and Easter Sunday. No Bank Holidays here.
As for service, it promises that opening an account will take just 15 minutes and you will receive your debit or credit card there and then as they are printed on site. That sounds great, although I'm intrigued to know just what they've cut out of the process in order to get it that quick.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
I really want to like Metro Bank and I believe any new competition in the sector is a good thing. But that's where the problem lies. Metro Bank's products just aren't competitive. Their instant-access savings account pays just 0.5% - the best on the market pays 2.75%. Their bonds and mortgages are equally uncompetitive not one of their products has made it into the best buy tables.
Compare that to another (sort of) new entrant to the market, Bank of Baroda. This Indian bank has launched an assault on the British market, with a range of products that have shot straight to the top of the best buy tables. It may not give away free dog biscuits, but I suspect it will be a bigger hit with customers.
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Klarna postpones US IPO as Trump's tariffs rattle marketsBuy-now-pay-later lender Klarna has postponed its US initial public offering owing to the market turbulence. It is not alone, says Matthew Partridge
-
Our pension system, little-changed since Roman times, needs updatingOpinion The Romans introduced pensions, and we still have a similar system now. But there is one vital difference between Roman times and now that means the system needs updating, says Merryn Somerset Webb.
-
We’re doing well on pensions – but we still need to do betterOpinion Pensions auto-enrolment has vastly increased the number of people in the UK with retirement savings. But we’re still not engaged enough, says Merryn Somerset Webb.
-
Older people may own their own home, but the young have better pensionsOpinion UK house prices mean owning a home remains a pipe dream for many young people, but they should have a comfortable retirement, says Merryn Somerset Webb.
-
How to avoid a miserable retirementOpinion The trouble with the UK’s private pension system, says Merryn Somerset Webb, is that it leaves most of us at the mercy of the markets. And the outlook for the markets is miserable.
-
Young investors could bet on NFTs over traditional investmentsOpinion The first batch of child trust funds and Junior Isas are maturing. But young investors could be tempted to bet their proceeds on digital baubles such as NFTs rather than rolling their money over into traditional investments
-
Pandemics, politicians and gold-plated pensionsAdvice As more and more people lose their jobs to the pandemic and the lockdowns imposed to deal with it, there’s one bunch of people who won’t have to worry about their future: politicians, with their generous defined-benefits pensions.
-
How to have a low-tax retirement in the sunNews Greece is to offer a ten-year tax incentive to foreign pensioners. That’s a pretty good offer, says Merryn Somerset Webb. But it might not last.
-
Prepare yourself for a rise in capital gains taxOpinion With the UK desperate to raise more money to cover the massive rise in public spending, squeezing more revenue out of capital gains tax looks like an obvious thing to do.
