As a business owner in the UK, selecting the right bank can impact your company’s financial health and daily operations. Two of the largest high street banks, NatWest vs RBS (Royal Bank of Scotland), offer extensive business banking services.
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Both banks, part of the same banking group, have similar product offerings, yet subtle differences may sway your decision. This article compares NatWest and RBS, providing an in-depth look at their features, pros and cons, fees and unique aspects.
NatWest vs RBS
| Feature | NatWest | RBS |
|---|---|---|
| Business current account | Offers a range of current accounts tailored to different business sizes and stages. | Provides a variety of business current accounts, including those tailored to startups and established businesses. |
| Business savings account | Provides a variety of business savings options to help grow your business surplus. | Offers several types of business savings accounts, including instant access and fixed-term accounts. |
| Business credit card | Offers business credit cards with varying benefits and reward programs. | Provides a variety of business credit cards, each tailored to different spending and reward preferences. |
| Merchant services | Partners with Worldpay to provide a range of merchant services. | Also partners with Worldpay for extensive merchant services. |
| International business services | Offers services such as international payments, foreign exchange and trade solutions. | Provides comprehensive international services, including international accounts, trade finance and FX services. |
| Online banking | Provides a robust online banking platform, with features like bulk payments and customisable user access. | Offers online banking with extensive services, including international payments and detailed financial tracking. |
| Mobile banking | Offers a comprehensive mobile app with receipt scanning and invoice management. | Has a dedicated mobile app with features such as invoice tracking and tax estimates. |
| Invoice financing | Provides solutions to improve cash flow by releasing cash tied up in invoices. | Offers invoice financing to help businesses manage cash flow and client payments. |
| Business loans | Offers a range of loan options, including unsecured business loans and commercial mortgages. | Provides different types of loans, including enterprise finance guarantee loans and business loans for women. |
| Business insurance | Partners with Arthur J. Gallagher to offer business insurance solutions. | Partners with Arthur J. Gallagher to provide a range of insurance solutions for businesses. |
| Overdraft facilities | Offers arranged and unarranged overdrafts subject to application and status. | Provides business overdrafts with competitive rates and tailored repayment options. |
| Support for startups | Offers 18 months of free business banking for startups, alongside mentoring and resources. | Provides 18 months of free banking for startups, plus resources and support through the Business Builder program. |
| 24/7 customer service | Provides round-the-clock customer service through phone, online chat and email. | Offers 24/7 customer service via various channels, including phone and online chat. |
| Business mentoring | Provides a dedicated business mentor service with experienced business advisers. | Offers mentoring support through the Entrepreneurial Spark program. |
| Green banking initiatives | Offers green mortgages and loans as part of its commitment to sustainable banking. | Supports green initiatives through eco-friendly lending options. |
| Dedicated business banking manager | Offers a dedicated relationship manager for personalised banking advice. | Provides a dedicated relationship manager to guide and assist with your business banking needs. |
| Commercial mortgages | Offers mortgages for a range of commercial properties with competitive interest rates. | Provides commercial mortgages with personalised advice and competitive rates. |
| Asset finance | Offers asset finance solutions to help businesses purchase or lease equipment. | Provides a range of asset finance options, including leasing and hire purchase. |
| Trade finance | Provides trade finance solutions to assist with international and domestic trade. | Offers extensive trade finance options, including letters of credit and trade loans. |
| Cash management & deposit services | Offers a range of cash management services to help businesses manage their cash flow. | Provides extensive cash management and deposit services to ensure efficient handling of funds. |
| Tailored industry-specific banking solutions | Offers specialised banking services for sectors such as healthcare, real estate and manufacturing. | Provides tailored banking solutions for industries including leisure. |
 | Wallester Business ✓ Virtual & Physical Cards ✓ No Setup Fees ✓ No Monthly Fee Pricing Trial period Contact | |
 | Revolut Business ✓ Business Current Account ✓ Award-Winning Mobile App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | 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 Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | 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 |
NatWest
NatWest stands out as a strong contender in the realm of business banking due to its broad range of services, digital-first approach, and support initiatives for businesses at all stages of growth.
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Pros and cons
Pros
- Comprehensive Business Banking: NatWest provides a full suite of banking products including current accounts, savings accounts, loans, and insurance, accommodating diverse business needs.
- Online Banking: Its robust online banking platform facilitates quick, hassle-free banking transactions.
- Free Business Banking: It offers 18 months of free business banking for startups.
- Business Mentor Service: Their mentoring service provides valuable support and advice to businesses.
- Support for Sustainability: NatWest also has strong commitments to green banking initiatives.
Cons
- Customer Service: Some customers report inconsistent customer service.
- Complex Fee Structure: Post-introductory period, the fee structure can be complex and expensive.
- Branch Availability: Despite digital emphasis, some businesses might prefer a more substantial branch network.
Table of fees and charges
| Fee Type | Charge |
|---|---|
| Monthly account fee | £5 |
| Electronic payments (in or out) | 35p |
| ATM cash withdrawal | Free |
| Cash deposit at branch | 70p per £100 |
| Foreign currency transaction fee | 2.75% |
| Overdraft interest | 10% EAR (Equivalent Annual Rate) |
Please refer to the NatWest website for the most accurate and up-to-date fee information.
Unique and standout features
NatWest shines with its FreeAgent integration, a cloud-based accounting software included with business current accounts.
It also offers an “Entrepreneur Accelerator” programme providing mentoring and resources for high-growth businesses.
Furthermore, the NatWest mobile app, with features like receipt scanning and invoice management, simplifies on-the-go banking.
Finally, its initiatives like ‘Women in Business’ show a commitment to diversity and inclusion in entrepreneurship.
RBS
RBS, with its legacy of trusted service and wide array of offerings, caters to various businesses, from micro SMEs to large corporations.
Pros and cons
Pros
- Wide Range of Services: RBS offers an extensive range of business banking services.
- Strong Online and Mobile Platforms: Efficient online and mobile banking platforms facilitate easy banking.
- Support for Startups: RBS also provides 18 months of free banking for startups.
- Dedicated Relationship Managers: Businesses receive personalised support.
- Green Lending Options: RBS is committed to green banking with eco-friendly lending options.
Cons
- Customer Service: Some clients express dissatisfaction with customer service quality.
- Fee Structure: The fee structure can be complex and costly after the initial free period.
- Branch Availability: Branch availability is declining as RBS focuses more on digital channels.
Table of fees and charges
| Fee Type | Charge |
|---|---|
| Monthly account fee | £5 |
| Electronic payments (in or out) | 35p |
| ATM cash withdrawal | Free |
| Cash deposit at branch | 60p per £100 |
| Foreign currency transaction fee | 2.75% |
| Overdraft interest | 9.5% EAR (Equivalent Annual Rate) |
Please refer to the RBS website for the most accurate and up-to-date fee information.
Unique and standout features
RBS’s standout features include Mettle, its digital business account designed for SMEs and freelancers, offering easy invoice creation, tax estimates and expense management.
It also provides Growth Funding for ambitious businesses seeking a significant boost.
RBS’s international business services are well-regarded, supporting businesses expanding overseas.
Its ‘Business Builder’ digital toolkit offers valuable resources and community support for entrepreneurs.
Conclusion – NatWest vs RBS
Both NatWest and RBS offer extensive features for business banking with a focus on digital services and support for startups.
NatWest excels in offering innovative digital tools and nurturing entrepreneurship, while RBS shines in international business services and digital accounts for SMEs.
Ultimately, the best choice will depend on your business’s unique needs, preferences and long-term goals.
FAQ
While they’re part of the same banking group, NatWest Group, NatWest and RBS operate separately with their own unique offerings.
Both banks offer robust digital services, but NatWest’s FreeAgent integration and RBS’s Mettle offer unique digital advantages.
Both banks offer free banking for startups for 18 months, along with various mentoring and support resources.
Both banks support sustainability, with NatWest offering green mortgages and loans, and RBS providing eco-friendly lending options.
Yes, both banks have physical branches, although their number is decreasing as digital banking becomes more prominent.
While both banks offer international business services, RBS’s services are particularly well-regarded.
Both banks offer 24/7 customer service, available through phone, online chat, and email.
Yes, both banks offer dedicated relationship managers for business accounts.
Fees can be complex after the free banking period, so it’s advisable to thoroughly review the fee structure of each bank.
NatWest stands out with its FreeAgent integration and entrepreneurship support, while RBS shines with Mettle and its international business services.