Metro Bank has launched an ISA aimed at savers who have had enough with confusing bonus and introductory rates.
The ISA, the first released by the bank, works in a very simple way, and should satisfy every savers need for simplicity.
The Instant Access Cash ISA will pay savers 2.35% until 2013 and is guaranteed to increase and decrease in line with the bank of England base rate.
Metro claim customers will be attracted to their ISA, as they won’t be left fed up by losing introductory rates after a year.
This year’s top five ISAs all include an introductory bonus for the first time ever, and Santander and Halifax’s offerings both drop from 3.3% and 3.0% to just 0.5% when the year is up.
With many savers loyal to their banks, or not moving money because of the hassle involved, they are often left receiving a miserly rate of interest.
Paul Marriot-Clarke, from Metro bank, claimed that the ISA was ‘exactly what Metro Bank is all about’.
‘It does what it says on the tin and is not going to suddenly drop to a low rate when the customer least expects it.’
The ISA will also replicate the banks simple rules on all products by allowing transfers from existing ISA pots into the account, and will pay interest from day one.
They also don’t have a minimum balance or deposit, and customers can withdraw money as often as they want, and can transfer to another provider without penalty if they should wish to do so.