Metro Bank business banking review
Metro Bank is a UK-based retail and commercial bank, known for its customer-friendly approach, extended branch hours, and no-appointment-needed service model. It offers a range of business and personal banking services, including current accounts, savings, loans, and commercial banking solutions.
Key features of Metro Bank
1. Business and personal current accounts
- No monthly fees for start-ups and SMEs: Free banking for 12 months for eligible new businesses.
- FSCS protection up to £85,000: Ensures deposit security.
- Extended branch hours: Open 7 days a week, with early morning and late evening availability.
- Cheque imaging and same-day cash deposits: Available at all branches.
- Instant debit card printing: Get a business or personal debit card immediately at a branch.
2. Business lending and commercial finance
- Unsecured business loans: Available from £2,000 to £25,000.
- Secured business loans: Borrow up to £25 million for business expansion.
- Commercial mortgages: Loans for business premises or property investments.
- Asset finance: Helps businesses purchase essential equipment.
- Invoice finance: Unlocks cash flow from unpaid invoices.
3. Savings and investment products
- Instant access savings: Flexible access with competitive interest rates.
- Fixed-term deposits: Higher interest rates for long-term savings.
- Cash ISAs and notice accounts: Tax-efficient saving options.
4. Digital and mobile banking
- Metro Bank Business App: Manage accounts, payments, and invoices.
- Online banking: Secure account management via desktop or mobile.
- Integration with accounting software: Compatible with Xero, QuickBooks, and Sage.
- Fraud prevention tools: Real-time transaction alerts and security features.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- Competitive FX rates: Available for businesses with global transactions.
- International payments: Supports SWIFT, SEPA, and cross-border transfers.
Metro Bank fees and pricing
1. Business current account fees
- Monthly account fees: Free for the first 12 months, then £6 per month.
- Transaction charges: Free UK electronic payments; cash deposits above £3,000 per month charged at 0.30%.
- Overdraft interest rates: Custom rates based on business assessment.
2. Savings account fees
- No maintenance fees.
- Interest rates vary based on deposit type and term length.
3. Lending fees
- Loan arrangement fees: Typically 1-2% of the loan amount.
- Early repayment fees: Apply to fixed-rate business loans.
- Invoice finance fees: Charged as a percentage of the invoice value.
Pros and cons of Metro Bank
Pros
- Extended branch hours make banking more convenient.
- Free business banking for 12 months for eligible SMEs.
- Instant debit card issuance in branches.
- FSCS protection up to £85,000.
- Seamless integration with accounting software.
- Strong customer service reputation.
Cons
- Monthly account fees apply after the first year.
- Limited branch presence outside major cities.
- No international branches, making global expansion less convenient.
- Business lending eligibility criteria can be strict.
How Metro Bank compares to competitors
| Feature | Metro Bank | Barclays Business | HSBC Business | Starling Business |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Free banking for SMEs | Yes (12 months) | No | No | Yes |
| Instant debit card issuance | Yes | No | No | No |
| Extended branch hours | Yes | No | No | No |
| Business lending | Yes | Yes | Yes | Limited |
| Digital banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | SMEs, start-ups, retail banking customers | SMEs, startups | SMEs, global businesses | Digital-only businesses |
Who should use Metro Bank?
- Startups and SMEs: Free business banking for 12 months and easy setup.
- Retail customers needing in-person banking: Extended branch hours for convenience.
- Businesses looking for quick debit card access: Instant card issuance in branches.
- Companies seeking accounting software integration: Supports Xero, QuickBooks, and Sage.
Our verdict
Metro Bank is a customer-focused retail and business bank, known for its extended branch hours, strong customer service, and seamless banking experience. Its free business banking for 12 months, quick account setup, and instant debit card issuance make it a top choice for startups and SMEs.
However, its monthly fees after the first year and limited branch network outside major cities may not suit all businesses. For those looking for flexible, customer-friendly business banking, Metro Bank provides a reliable and innovative alternative to traditional banks.