Metro Bank Plc · DRN-5965004

The complaint Mr and Mrs O are unhappy with Metro Bank Plc. They opened an account with Metro as they were expecting to get 5% interest fixed for one year. The rate was lowered over the year by Metro and Mr and Mrs O state they were told it was fixed for the full twelve months. What happened Mr and Mrs O said they saw an advert from Metro Bank for a 5% interest account for one year. They said they wanted a fixed rate so they called Metro to check. And the adviser told them if the money was put in now, it would be fixed at that rate for one year. They said the adviser went on to say if they delayed the rate might fall but they would get whatever rate applied at that time for the full twelve months. Mr and Mrs O said they were told after the year completed the account rate would fall to around 1%. As they wanted to open the account jointly they had to visit a branch and that suited Mr and Mrs O as they wanted face to face confirmation of the 5% fixed rate. When they did visit the branch Mrs O noted some of the adverts did seem to say the rate could vary. But Mr and Mrs O said the adviser they dealt with said this wasn’t the case for their deal and they would get the twelve month 5% fixed interest. At the end of the twelve months bank statements showed they had only received around 3.6%. Mr and Mrs O complained to Metro. Metro accepted its service had fallen short. It said it wasn’t possible to offer a fixed rate on an Instant Access Savings Account. Metro checked with the branch involved and it said “the information sheet of the Instant Access Savings account where it explained the rate is variable” was provided to Mr and Mrs O. But it noted it couldn’t review the phone call Mr and Mrs O made to the Contact Centre so it would partially accept the complaint. It apologised for any misleading information. It provided feedback to all staff involved and paid the £75 into Mr and Mrs O’s account as a goodwill gesture. Mr and Mrs O remained unhappy and brought their complaint to this service. Our investigator upheld the complaint. She noted the phone calls where any evidence would be were unavailable. Our investigator didn’t think Metro were wholly to blame she said the information for the account clearly showed interest rates could change at any time and updates about the rates were sent throughout the year. She said the Metro system showed the emails sending updates throughout the year had reached Mr and Mrs O. Our investigator felt Mr and Mrs O could have called on receipt of the updates to query if rates had changed. Overall though she didn’t feel the £75 compensation was enough due to the misinformation and said Metro should offer a further £75 to take the total to £150. Mr and Mrs O didn’t accept this and asked for their complaint to be passed to an

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ombudsman for a final decision. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. This is an informal service so I’m not going to comment on everything included within this complaint. Instead, I’m going to stick to what I think are the central points that apply. I can confirm all the evidence provided by both sides has been considered. Mr and Mrs O said they were aware it was a variable rate but they were assured at the point they opened their account and paid in their money that they were on the 5% fixed rate. Mr and Mrs O accepted they had received the letters referring to lowering interest rates but didn’t think these rates applied to them, they thought this only applied to new deposits. Our investigator said it didn’t say anywhere on these letters that it only applied to later, new customers. She said Metro made Mr and Mrs O aware of potential rate changes within the terms and conditions within their welcome pack. She said it was clearly noted here that the interest rate could change at any time. Mr and Mrs O said Metro’s point was incoherent. They feel Metro accepted it had given them conflicting information and offered the £75 for that failing. They said our investigator had agreed with that and so she had raised the compensation figure. Mr and Mrs O feel they should be put back in the financial position they would have been had they been paid the interest they were expecting. They said they had options to put their money with other banks but went with Metro due to the twelve month fixed rate. Mr and Mrs O said their key point is, “You cannot have a fixed rate that is also variable. It is either one or the other.” Mr and Mrs O are adamant that they recognised this from the start and asked about it in phone calls with Metro. They say Metro staff told them on the phone and in branch the rate was fixed at the point the deposit was made. Mr and Mrs O said 2 different staff independently telling them the same thing, “indicated strongly to us that this was the bank's position.” They continued that they felt this meant the lower rates would only apply to any further later deposits they made. Mr and Mrs O said it feels entirely possible to them that Metro “hid behind the ambiguity of fixed variable rates.” I don’t think Metro do agree that it gave misleading information to Mr and Mrs O. It said it couldn’t confirm the conversation from the phone call as that was made before Mr and Mrs O became customers so there’s no call log. Metro said the branch confirmed everything had been explained to Mr and Mrs O and it had provided them with documentation. This included the Pre-Account opening Customer Checklist (Retail) form which was done and all the form boxes were ticked. Metro referred to “potential misinformation” only. And said that was why the £75 was offered. But I can understand based on Metro’s final response why Mr and Mrs O felt Metro did accept it had made a mistake. Metro said it wrote to Mr and Mrs O in February 2024 and a reminder in April 2024 about reductions to the interest rates on their limited edition product.

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Metro said it also wrote in May 2024 and a further reminder in June 2024 letting Mr and Mrs O know about interest rate reductions and removal of the limited edition end date. In Metro’s own words to this service it said, “On review of his complaint, I can confirm Mr O opened a sole Instant Access account with the Bank through an online application on 9 April 2024. At the time the Bank did offer customers a Limited-Edition Rate, fixed for a 1-year term.” It continued by referring to what its documentation stated: “‘Limited Edition rate of 5.10% Gross / 5.22% AER* (variable) From 10 November 2023 you can earn a Limited Edition rate of 5.22% AER* (variable) for 12 months if a minimum account balance of £500 is reached within 28 calendar days of account opening. • During the 12-month period the rate can vary meaning it can go up or down, but it will not go below the Standard Variable rate that is available at that time. • Your account will earn Standard Variable rate interest until you meet the Limited Edition rate criteria. Standard Variable rate of 1.64% Gross / 1.65% AER* (variable) If your account balance does not reach £500 within 28 calendar days of account opening you will be eligible for our Standard Variable rate of 1.64% Gross / 1.65% AER* (variable). • Interest is calculated daily and paid monthly. Limited Edition rates are promotional rates which are subject to availability and can be withdrawn from sale at any time. The interest on these rates is higher than our Standard Variable rate. A Limited Edition rate remains variable, meaning that the interest you can earn can go down even during a specified duration. The rate will not go below the Standard Variable rate that is available at that time. • We may change any of the rates and charges detailed in this Important Information Summary. • We’ll notify you of any changes by post, email, or any other form of communication. • If a change is not to your benefit, you’ll be given 14 days’ notice if in response to the Bank of England Base Rate and at least 2 months’ notice if for any other reason.’ Metro also referred to its terms and conditions about changings rates: “3.3 Changing our rates We provide information about our current interest rates on our website. You may phone us to find out about our current interest and exchange rates or ask at one of our stores. We may change our rates, and we will tell you about these changes personally, meaning by post, secure electronic message, statement message or any other communication method we decide. We will not change a fixed rate on your account for the time we have agreed to keep it fixed.” I don’t think there’s documents giving the clear indication the product had a fixed rate of 5% for one year. I can understand that there might be potential here for a customer to find the details slightly confusing. But I note Mr and Mrs O stated they were aware the product was

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variable and they accept when rates did go down they did receive letters from Metro confirming this. But they also said they only found out about the lower interest rate at the end of the year. Mr and Mrs O have said they thought the new lower rates would only apply to any deposits they made after the initial deposit. Although I can understand the sentiment the documentation sent out doesn’t back this up. The details clearly talk about the product and the rates that apply to any money placed in this account. I don’t see any record here showing Metro referred only to new customers at this point. I’ve listened to calls between Mr and Mrs O and Metro but I haven’t found any record of a call discussion about the interest rates. The only calls I’ve listened to talk generically about the product and don’t discuss interest rates. The records from the face to face in branch discussion show no record of the 5% interest rate. Metro also passed this service the pre account checklist form which states all the details were completed in line with its usual process. The welcome pack information does detail that the rate can go up or down. But it does refer to the 5% and straight after it has in brackets the word “variable.” So, I think the words “Limited edition” could be confusing even though I don’t think it uses the word “fixed” here. So, I don’t see any indication that there was anything in writing that said Mr and Mrs O would get a fixed at 5% interest rate instant access account for one year. Of the details I have seen it does not state this. However, I can see that the details would be potentially confusing for customers. Metro didn’t have a record of any discussion confirming it was a 5% fixed rate for twelve months (in branch or on the telephone). But it accepted there may have been an issue and offered of the goodwill gesture of £75. So, I think Metro accepting our investigators position that it should increase that offer by a further £75 to make a total award of £150 is a fair and reasonable outcome. I do think Metro should pay the extra £75 put forward by our investigator as I do think the terms could be considered confusing. I’ve nothing to show me Mr and Mrs O were guaranteed the 5% was fixed and Metro did write to update them when the rate dropped. But in view of the potential for confusion, I think a total compensation of £150 is overall a fair and reasonable outcome. Putting things right • Pay a further £75 on top of the £75 it has already paid. My final decision I uphold this complaint. I require Metro Bank Plc to: • Pay a further £75 on top of the £75 it has already paid.

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Under the rules of the Financial Ombudsman Service, I’m required to ask Mr O and Mrs O to accept or reject my decision before 21 April 2026. John Quinlan Ombudsman

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