Royal Bank of Scotland business banking review
Royal Bank of Scotland (RBS) is one of the UK’s major high-street banks, offering personal, business, and corporate banking services. As part of the NatWest Group, RBS provides a range of financial products, lending solutions, and digital banking features.
Key features of RBS
1. Personal and business current accounts
- Personal current accounts: Includes standard, student, and premium options.
- Business banking accounts: Tailored for startups, SMEs, and large businesses.
- FSCS protection up to £85,000: Ensures deposit security.
- Reward accounts: Cashback and benefits for eligible customers.
- Overdraft and credit facilities: Subject to eligibility.
2. Business lending and commercial finance
- Business loans: Borrow from £1,000 to £10 million with fixed and variable rates.
- Commercial mortgages: Funding for property acquisition and refinancing.
- Invoice and asset finance: Helps businesses manage cash flow and acquire assets.
- Government-backed loans: Participation in schemes like the Recovery Loan Scheme (RLS).
3. Savings and investment products
- Instant access savings: Flexible withdrawal options.
- Fixed-term savings: Higher interest rates for long-term deposits.
- Cash ISAs: Tax-efficient savings for individuals.
- Business savings accounts: Designed for corporate funds management.
4. Digital and mobile banking
- RBS mobile app: Secure and user-friendly with real-time transaction updates.
- Online banking: Full banking functionality via desktop and mobile.
- 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 businesses engaged in global trade.
Royal Bank of Scotland 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 for most personal and business accounts.
- 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 RBS
Pros
- Comprehensive banking solutions for personal and business customers.
- Strong digital banking capabilities with mobile and online banking.
- FSCS protection up to £85,000 for depositors.
- Wide range of business lending and finance options.
- Extensive UK branch network for in-person 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 certain loans.
How RBS compares to competitors
| Feature | RBS | 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 RBS?
- 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
RBS 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, RBS provides a solid, trusted financial solution.