Bank of Scotland vs Royal Bank of Scotland (RBS) for business banking

Updated on 7 August 2023

Business banking is a cornerstone of any enterprise. With a spectrum of options available, the selection process can be overwhelming. Two stand-out options in the UK are the Bank of Scotland vs Royal Bank of Scotland (RBS). This article dives into the specifics of what each bank offers, providing comparisons of features, fees, and unique offerings. It’s designed to help you make an informed decision about which institution will best serve your business banking needs.

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Bank of Scotland vs Royal Bank of Scotland (RBS)

FeaturesBank of ScotlandRoyal Bank of Scotland (RBS)
Online BankingFree online banking, mobile alertsFree online banking, mobile alerts
Mobile BankingApp available on iOS and Android, includes mobile depositsApp available on iOS and Android, includes mobile deposits
24/7 Customer SupportAvailable through phone and emailAvailable through phone, email, and online chat
Business LoansLoans from £1,000 to £50,000 over 1 to 25 yearsLoans from £1,000 to £50,000 over 1 to 10 years
OverdraftsOverdrafts up to £5,000, subject to approvalOverdrafts up to £5,000, subject to approval
Invoice FinancingInvoice factoring and discounting availableInvoice factoring and discounting available
Business InsuranceComprehensive business insurance options via third partiesComprehensive business insurance options via third parties
Card Reader AvailableAvailable with point of sale solutionsAvailable with point of sale solutions
Business Credit Card2.95% non-sterling transaction fee, up to 56 days interest-free2.75% non-sterling transaction fee, up to 56 days interest-free
Fixed Rate SavingsFixed-term deposits from 1 to 5 yearsFixed-term deposits from 1 to 5 years
Variable Rate SavingsInstant access and notice accounts availableInstant access and notice accounts available
International PaymentsAvailable with currency conversion chargesAvailable with currency conversion charges
Cash ManagementCash concentration, notional poolingCash concentration, notional pooling
Asset FinanceHire purchase, leasing, refinancingHire purchase, leasing, refinancing
Trade ServicesImport and export services, including letters of creditImport and export services, including letters of credit
Specialised Sector SolutionsTailored services for sectors such as agriculture, real estate, healthcareTailored services for sectors such as agriculture, real estate, healthcare
Treasury SolutionsRisk management, investment servicesRisk management, investment services
Merchant ServicesCard terminals, online payment gatewayCard terminals, online payment gateway
Business Mentor ServicesAccess to mentorship resourcesAccess to mentorship resources
Dedicated Relationship ManagerAssigned to business accountsAssigned to business accounts
Bank of Scotland vs Royal Bank of Scotland (RBS)

Wallester Business
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✓ No Setup Fees
✓ No Monthly Fee
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Revolut Business
✓ Business Current Account
✓ Award-Winning Mobile App
✓ Quick & Easy Application Process
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Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
Pricing Trial period Contact

Card One Money
✓ No Credit Checks
✓ Simple Fees
✓ Up To 3.5% Cashback
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ANNA Money
✓ Apply In 10 Minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App
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HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
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Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
Pricing Trial period Contact

Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected
Pricing Trial period Contact

Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
Pricing Trial period Contact

Bank of Scotland

The Bank of Scotland is a commercial and clearing bank, established in 1695, offering a range of services that cater to businesses of all sizes. The bank prides itself on robust customer service and a myriad of features to support business growth and operations.

Pros and cons

Pros

  • Customised banking solutions: The Bank of Scotland provides tailor-made banking solutions to accommodate the distinct needs of various industries.
  • Wide range of services: From loans and overdrafts to invoice financing and cash management, the Bank of Scotland caters to every banking need a business might have.
  • Digital banking options: The Bank of Scotland provides extensive digital banking features, including mobile and online banking, which gives businesses access to their accounts anytime and anywhere.
  • Accessible customer support: Bank of Scotland’s customer service is available 24/7, ensuring queries and concerns are addressed promptly.

Cons

  • Limited physical presence: The Bank of Scotland has a smaller physical footprint, which may be a disadvantage for businesses that prefer in-person transactions.
  • Potential for additional fees: There may be extra charges for services outside the standard banking offerings.
  • Complex products: Some customers report that certain banking products, like international trade services and asset finance, can be complex to understand and use.

Fees and charges

ServicesFees
Monthly Account Fee£6.50
Electronic Payments (In/Out)£0.35
Manual Payments (In/Out)£0.65
Cash Payments (In/Out)0.60% of amount
Non-Sterling Transaction Fee2.75%
Bank of Scotland fees and charges

Unique and standout features

The Bank of Scotland offers several unique features that set it apart.

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Their ‘Business Toolbox’ provides businesses with access to credit and cash flow management tools, HR assistance, and legal helpline, all to help businesses thrive.

In addition, they also offer a ‘Business KnowledgeBox’ – an online resource packed with tips and guides on managing a business, from setting up to expanding internationally.

These features make the Bank of Scotland a comprehensive financial partner for any business.

Royal Bank of Scotland (RBS)

The Royal Bank of Scotland (RBS) is one of the retail banking subsidiaries of the Royal Bank of Scotland Group. RBS is known for its wide-ranging business banking services and a strong focus on customer relationships.

Pros and cons

Pros

  • Strong digital platform: RBS offers robust online and mobile banking services, making account management and transactions seamless for businesses.
  • Specialised banking products: RBS provides specialised banking products that cater to diverse business needs, including asset finance and international trade services.
  • Dedicated relationship managers: RBS provides a dedicated relationship manager for business customers, ensuring personalised and efficient service.

Cons

  • Additional fees for certain services: Like most banks, RBS may impose additional charges for services outside the standard banking package.
  • Less than perfect customer service: Some customers report occasional slow responses from the customer service team.
  • Fluctuating online platform performance: Although the digital platform is robust, there have been reports of occasional downtimes affecting business operations.

Fees and charges

ServicesFees
Monthly Account Fee£5
Electronic Payments (In/Out)£0.30
Manual Payments (In/Out)£0.70
Cash Payments (In/Out)0.65% of amount
Non-Sterling Transaction Fee2.75%
Royal Bank of Scotland (RBS) fees and charges

Unique and standout features

RBS stands out with its ‘Entrepreneur Accelerator’ – a start-up hub providing coaching, office facilities, and networking events for budding entrepreneurs.

RBS also offers ‘FreeAgent’ – a free online accounting software for small businesses, helping them manage invoices, expenses, VAT and more.

These features position RBS as a proactive partner in a business’s financial and overall operational success.

Conclusion – Bank of Scotland vs Royal Bank of Scotland (RBS)

In the realm of business banking, both the Bank of Scotland and RBS offer a comprehensive range of services.

Both banks provide robust online platforms, a broad spectrum of products, and strong customer support.

Your decision between the two may come down to the unique features each bank provides and which set aligns most closely with your business needs.

Do you prefer a bank that supports your operational needs like the Bank of Scotland, or one that aids in business growth like RBS?

Ultimately, the decision should be guided by your business’s unique demands and long-term strategy.

FAQ

Which bank offers better digital banking services?

Both the Bank of Scotland and RBS offer comprehensive digital banking services, including mobile and online banking. Your preference may depend on individual user interface and functionality experiences.

Can I get a business loan from both banks?

Yes, both the Bank of Scotland and RBS offer business loans. The terms and conditions may vary, so it’s worth comparing these before deciding.

Do both banks provide 24/7 customer support?

Yes, both banks provide 24/7 customer support.

Which bank is better for start-ups?

Both banks offer start-up-friendly services, but RBS stands out with its ‘Entrepreneur Accelerator’ program designed specifically for start-ups.

Do the banks offer any unique services?

Yes, the Bank of Scotland offers a ‘Business Toolbox’ and ‘Business KnowledgeBox’, while RBS provides ‘FreeAgent’ software and the ‘Entrepreneur Accelerator’ program.

Are there any fees for electronic transactions?

Yes, both banks charge fees for electronic transactions: £0.35 per transaction for the Bank of Scotland and £0.30 for RBS.

Can I open a business account online with both banks?

Yes, both banks provide the option to open a business account online.

Reviewed by , Managing Director

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