NatWest business banking review
NatWest (National Westminster Bank) is one of the UK’s largest retail and commercial banks, offering a full range of personal, business, and corporate banking services. It is part of the NatWest Group, which includes Royal Bank of Scotland (RBS) and Coutts.
Key features of NatWest
1. Personal and business current accounts
- Free personal current accounts: Includes standard features like overdrafts and mobile banking.
- Business banking accounts: Tailored options for SMEs, startups, and larger businesses.
- FSCS protection up to £85,000: Ensuring deposit security.
- Student and graduate accounts: Special features such as interest-free overdrafts.
- Premium Reward accounts: Includes benefits like travel insurance and breakdown cover.
2. Business lending and commercial finance
- Small business loans: Borrow from £1,000 to £50,000 with fixed interest rates.
- Commercial mortgages: Property finance for business expansion.
- Invoice finance: Helps businesses manage cash flow by unlocking money from unpaid invoices.
- Asset finance: Funding for purchasing equipment and vehicles.
3. Savings and investment products
- Instant access savings: Flexible withdrawal options.
- Fixed-term deposits: Higher interest rates for long-term savings.
- Cash ISAs: Tax-efficient savings with competitive rates.
- Investment accounts: Managed funds and stock trading options.
4. Digital and mobile banking
- NatWest mobile banking app: Secure and feature-rich, supporting payments, transfers, and budgeting.
- Online banking: Comprehensive web-based banking services.
- Integration with accounting software: Compatible with Xero, QuickBooks, and Sage.
- Fraud detection and security tools: Biometric login, encryption, and instant alerts.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- International payments: Supports SWIFT, SEPA, and FX services.
- Trade finance: Solutions for import/export businesses.
NatWest Fees and pricing
1. Personal and business current account fees
| Account Type | Monthly Fee | Overdraft Charges | Additional Benefits |
|---|---|---|---|
| Personal Current Account | £0 | Variable | Standard banking features |
| Reward Account | £2 – £9 | Variable | Cashback and travel benefits |
| Business Account | £0 – £8.50 | Variable | Free banking for startups (24 months) |
2. Transaction fees
- UK bank transfers: Free.
- International transfers: Fees apply based on currency and transfer method.
- ATM withdrawals: Free in the UK; fees apply abroad.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: Apply to fixed-term business loans.
- Invoice finance fees: Charged as a percentage of the invoice value.
Pros and cons of NatWest
Pros
- Wide range of personal and business banking products.
- Strong digital banking capabilities with mobile and online banking.
- FSCS protection up to £85,000 for depositors.
- Comprehensive lending and commercial finance solutions.
- Good customer service with branch and digital support.
Cons
- Monthly fees apply to some premium accounts.
- Business account fees after the free period.
- International transactions may incur higher fees.
- Strict lending eligibility criteria for some business loans.
How NatWest compares to competitors
| Feature | NatWest | Barclays | HSBC | Lloyds |
|---|---|---|---|---|
| Personal current accounts | Yes | Yes | Yes | Yes |
| Business banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital banking | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | Yes |
| Ideal for | SMEs, personal banking, corporate clients | SMEs, startups | International businesses | UK-based businesses |
Who should use NatWest?
- Individuals looking for a full-service UK bank with personal, student, and premium accounts.
- Small and medium-sized businesses needing business banking and lending options.
- Startups: Benefit from 24 months of free business banking.
- Corporate clients: Access to commercial finance, international banking, and trade finance solutions.
Our verdict
NatWest is a leading UK bank offering a full suite of personal, business, and corporate banking solutions. Its strong digital banking features, business lending options, and customer support make it a top choice for SMEs and individuals looking for a reliable high-street bank.
However, its monthly fees on premium accounts and higher international transfer fees may not suit cost-conscious users. For those seeking a well-rounded, full-service banking experience, NatWest provides a solid, trusted financial solution.