Metro Bank launches online ISA service
London-based Metro Bank is partnering with Australian online banking solutions provider Sandstone to create an online application platform for Individual Savings Accounts (ISAs).
CallCredit will provide verification and credit checking data for the new service, which will be available in time for consumers to take advantage of the new Isa allowance, starting in April.
This tax year, anyone over the age of 16 will be able to save up to £11,280 in government-backed ISAs, which offer a tax-efficient way of saving.
ISA savings are not taxed on interest, dividends or capital gains.
Up to £5,640 of the annual allowance can be saved in a cash ISA and the same amount can be saved in a stocks and shares ISA.
Alternatively, the whole allowance can be put into the stocks and shares option.
Metro Bank’s ‘BankFast Apply’ platform will allow immediate online customer applications.
The service will use Electronic Identification and Anti Money Laundering checks in order to approve ISA applications swiftly.
Metro Bank’s Managing Director, Paul Marriott-Clarke, said: “As the ISA season approached, we wanted to extend our reputation for customer service and no nonsense ISA products into the online channel, allowing customers old and new to have access to apply for our products”.
Metro Bank has criticised the use of ‘teaser’ rates to entice customers to take out an ISA account, according to a report by the BBC.
Many people who open a cash Isa which offers an introductory bonus, fail to switch to a different product when this ‘teaser’ rate expires.
Metro Bank says that the practice of temporarily boosting the headline interest rate in this way is dishonest and misleading.
Metro Bank was launched in 2010 with four London stores.
It has grown to 10 stores across Greater London and aims to have more than 200 stores by 2020.