Are you thinking about opening an RBS Business Bank Account? With a robust heritage and a dependable reputation, RBS stands out as a top option for small to medium-sized businesses across the UK.
It provides sophisticated digital tools and stringent fraud prevention measures, making it an excellent choice for both budding entrepreneurs and established businesses contemplating a banking switch.
This detailed review will explore the account’s features, fees, and overall value to assess whether it meets your business’s financial requirements.
Royal Bank of Scotland Business Bank Account
Monthly Fee
£0.00
Bank Transfers
£0.00
Card Purchases
£0.00
Overdraft
Yes
FSCS Protection
YesAccessibility
Manage your account online, through the mobile app, in an RBS branch or over the phone.
– Your business either has a turnover above £1 million, or a turnover below £1 million and has been trading for over a year
– You are over 18 years old
– You have the right to be self-employed in the UK.
– Your registered business address is in the UK, Channel Islands, Isle of Man or Gibraltar, or you are registered for tax purposes in one of these jurisdictions.
– You haven’t been declared bankrupt or received a County Court Judgement (CCJ) or Court Decree.
Royal Bank of Scotland Start-Up Bank Account
Monthly Fee
£0.00
Bank Transfers
£0.00
Card Purchases
£0.00
Overdraft
Yes
FSCS Protection
YesAccessibility
Manage your account online, through the mobile app, in an RBS branch or over the phone.
– Your business must have been trading for less than 1 year
– Your business has a turnover of less than £1 million
– You are over 18 years old
– You have the right to be self-employed in the UK.
– Your registered business address is in the UK, Channel Islands, Isle of Man or Gibraltar, or you are registered for tax purposes in one of these jurisdictions.
– You haven’t been declared bankrupt or received a County Court Judgement (CCJ) or Court Decree.
Our Verdict
The RBS Business Bank Account is an excellent choice for UK SMEs. It offers start-ups and switchers two years of free banking, which can significantly ease early financial burdens. Its advanced digital banking platform is expertly integrated with FreeAgent accounting software, dramatically enhancing financial management efficiency.
However, businesses should consider the exclusions in the free banking offer, such as charges for unarranged overdrafts and international payments. After the introductory period, the transition to a transaction-based Standard Tariff could be cost-effective for businesses primarily conducting digital transactions. However, it may be less advantageous for those heavily involved in cash transactions.
RBS’s robust reputation for reliability and proactive fraud prevention measures further bolsters its attractiveness as a banking option. While the absence of integration with other popular accounting software like QuickBooks or Xero might present challenges for some, RBS’s stringent security protocols and comprehensive customer support firmly establish it as a dependable banking partner for many UK business owners.
Royal Bank of Scotland Business Account At A Glance
| Feature | Details |
|---|---|
| Account Types | Start-up, Business Bank, Mettle, Community |
| Free Banking Period | Up to 2 years for Start-up and Business Bank Accounts |
| Key Features | FreeAgent integration, digital banking, mobile app |
| Eligibility | UK-based businesses, age 18+, specific turnover requirements |
| Transaction Fees | £0.35 for automated payments, £0.70 per £100 for cash payments |
| Overdraft Access | Available for Start-up and Business Bank Accounts |
| Customer Support | 24/7 digital assistant, phone support, branch access |
| Security Tools | Biometric login and comprehensive fraud prevention systems |
| Learn More | Visit RBS Business |
RBS Business Banking Pros & Cons
- Introductory Offers: RBS provides a two-year free banking period for startups and account switchers, offering substantial cost savings compared to Barclays’ shorter free banking offers. This is particularly beneficial for new businesses looking to minimise initial expenses.
- Digital Banking Infrastructure: RBS’s advanced digital and mobile platforms integrate seamlessly with FreeAgent accounting software, enhancing SMEs’ financial management. This integration surpasses offerings from competitors like HSBC, which lack comprehensive solutions, making it a standout feature for tech-savvy businesses.
- Security Measures: RBS prioritises security with features like biometric authentication and proactive fraud prevention, ensuring business owners’ data remains secure and aligning with industry standards. This commitment to security is crucial for maintaining customer trust and protecting sensitive information.
- Customer Support: RBS offers extensive support through digital assistants and secure messaging, which are available 24/7. This provides a superior service network compared to banks with more limited hours. This around-the-clock assistance is essential for businesses that operate beyond traditional working hours.
- Post-Introductory Fees: RBS shifts to a transaction-based Standard Tariff after the free banking period, potentially increasing costs for high-transaction businesses. This contrasts with Lloyds, which may offer more predictable monthly fees, posing a challenge for businesses planning long-term budgeting.
- Limited Interest on Balances: Unlike competitors like Santander, which offer interest on in-credit balances, RBS does not provide this benefit, potentially deterring cash-rich businesses. This could be a significant drawback for companies looking to maximise their returns on surplus funds.
- Integration Limitations: Despite RBS’s strong integration with FreeAgent, businesses using other platforms like QuickBooks or Xero may encounter compatibility issues, a disadvantage compared to banks with broader software support. This could limit the bank’s appeal to businesses committed to other financial management systems.
Overview of RBS Business Account Key Features
The Royal Bank of Scotland Business Account combines a robust digital platform with extensive support services tailored to UK SMEs’ financial management needs.
What Types of Business Accounts Does RBS Offer?
RBS provides a variety of business accounts suited to different business stages and sizes:
Start-up Account: Designed for new businesses with less than a year in operation and a turnover under £1 million, offering two years of free banking to help manage initial costs.
Business Bank Account: This account is suitable for established businesses with a turnover of over £1 million or more than a year in operation. It also offers two years of free banking for switchers, which helps reduce banking costs.
Mettle Account: This is a digital-first account for sole traders and small limited companies. It provides free banking with no transaction charges, which is ideal for those seeking a streamlined banking experience.
How Does RBS Support Digital Banking?
RBS excels in digital banking with a user-friendly platform that supports the management of up to 50 business accounts under one login. Notable features include:
Seamless Integration with FreeAgent: Automatically syncs transactions to aid forecasting, tax management, and cash flow.
Mobile Banking App: This app provides secure access to account details, transaction history, and remote cheque deposits, enhanced by biometric security for increased safety and convenience.
How Does RBS Provide Sector-Specific Support?
RBS enhances traditional banking with sector-specific support:
Business Builder Program: Delivers resources and guidance on business planning and market research for start-ups and growing businesses.
Entrepreneur Accelerator: Offers mentoring and networking opportunities to encourage innovation and growth among participants.
Royal Bank of Scotland Business Account Pricing
Understanding the RBS Business Bank Account’s pricing structure is essential for UK business owners, as it directly impacts their operational costs. The account features a tiered pricing system, starting with appealing introductory offers that transition into a transaction-based tariff.
RBS offers several promotional discounts for Business Account customers, including:
- Start-Up Bank Account: 2 years of free everyday banking for new customers. Fees for unarranged overdrafts, international payments and additional services will still apply.
- Business Bank Account: 2 years of free everyday banking if you switch your business account using the Current Account Switching Service and have an annual credit turnover of up to £2 million.
- Community Bank Account: Free everyday banking for existing RBS customers with a community account annual credit turnover of less than £100,000. Only one named party needs to be an existing personal or business customer.
This waiver covers standard service charges but does not include fees for unarranged overdrafts, international payments, and specialist services.
After your free period expires, you will be moved to RBS’s Standard Tariff, as shown in the table below.
| Service | Fee |
| Automated payments (in or out), including ATM withdrawals, Direct Debits, standing orders, Faster Payments | £0.35 per item |
| Making cash payments (in or out), including money paid in at branches and quick deposits | £0.70 per £100 + £0.70 manual fee per item |
| Manual payments (in or out), including cheques and manual credits | £0.70 per item |
| Cash Centre Cash In | £0.23 per £100 for notes, £0.60 per £100 for coins |
| Cheques paid in via the mobile app | £0.70 per item |
| BACS Usage | £0.18 per item |
| BACS Files Processed | £5.25 per file |
| Non-sterling transaction fee | 2.75% of the transaction value |
| Unarranged overdraft interest | 15% per annum unless agreed otherwise |
| Paid referral fee | £20 |
| Unpaid item fee | £12 |
The initial free banking period provides substantial cost savings for small businesses and start-ups, positioning RBS as a compelling choice for reducing early-stage expenses. However, businesses with frequent cash transactions or regular international payment needs should know the potential costs after the promotional period ends.
The “pay-for-what-you-use” model benefits digitally-focused businesses, enabling them to manage expenses more effectively by tailoring their transaction habits.
Ease of Use
The RBS Business Bank Account is designed with user-friendliness, offering an easy and smooth process that spans its digital and mobile platforms and extends to in-person services at branches and Post Offices. Here’s a detailed look at how it simplifies banking for business owners:
Digital Banking Platform: This platform allows business owners to manage up to 50 accounts using a single login, significantly streamlining financial oversight. It provides essential functions such as balance checks, payment initiation, and access to historical statements. The inclusion of intuitive video tutorials for everyday tasks further enhances user experience, making it easier to navigate and utilise the platform effectively.
Mobile App: Available for iOS and Android devices, the mobile app ensures quick access to account details and streamlines transactions using contact lists or account numbers. A standout feature is the cheque deposit function, which enables users to scan cheques via their smartphone. This convenient feature minimises the need for physical branch visits, saving time for busy business owners.
Branch and Post Office Access: Acknowledging the ongoing need for physical banking solutions, RBS offers comprehensive services at its branches and Post Offices. These include support for cash deposits and withdrawals, catering to users who prefer or require face-to-face banking interactions. This accessibility is particularly advantageous for business owners who value or need in-person service.
How Safe is Banking with the Royal Bank of Scotland?
The Royal Bank of Scotland (RBS) rigorously adheres to the UK’s stringent financial regulations and best practices, ensuring the security of its business banking customers. Here’s how RBS safeguards your business:
- Fraud Prevention Tools: RBS employs advanced fraud detection systems that monitor transactions 24/7 and immediately alert you to suspicious activity.
- Biometric Login Security: The RBS mobile app enhances security through biometric authentication options, including fingerprint and facial recognition, safeguarding against unauthorised access.
- FSCS Protection: Deposits at RBS are secured under the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per eligible depositor.
These measures demonstrate RBS’s commitment to data protection and fraud prevention, providing crucial peace of mind for business owners.
How Does RBS Support Its Business Customers?
RBS offers a comprehensive suite of customer service options for business owners. Support is available through multiple channels, including telephone, online chat, and in-person branch visits, ensuring accessibility for various preferences and needs.
The bank’s digital assistant, Cora, provides 24/7 support for routine enquiries and can escalate more complex issues to live agents. This efficient system helps to minimise wait times and ensures that all problems are addressed promptly and effectively.
For more personalised service, RBS has dedicated phone lines for general business banking support, available 24/7. Specialist advice on lending and other complex banking matters is accessible during regular business hours, catering to businesses’ needs. Additionally, secure messaging for private enquiries can be accessed via the RBS mobile app or their Digital Banking platform, offering another layer of convenience and security.
Furthermore, RBS provides a Dedicated Relationship Manager service for eligible businesses, offering tailored support that aligns with your banking needs. This multi-channel approach ensures that business owners have flexible and expert support options available whenever needed, significantly enhancing the management of their financial operations.
RBS Business Bank Account Customer Reviews
User feedback on the RBS Business Bank Account from Trustpilot and various app stores presents diverse opinions. Here are the key insights:
Positive Feedback
- Digital Banking: Users frequently praise RBS’s advanced digital banking tools, notably its seamless integration with FreeAgent, significantly enhancing small businesses’ financial management.
- Customer Support: Many customers value the responsive customer service, highlighting 24/7 access via digital platforms, including assistance from Cora, the AI chatbot.
Negative Feedback
- Fees: Some users express dissatisfaction with unexpected fees, particularly after the initial free banking period, which leads to frustration due to a lack of prior cost transparency.
- Branch Accessibility: Limited branch access has raised concerns among users who prefer face-to-face banking, and it is noted as a significant drawback.
What Are the Eligibility Requirements for Opening an RBS Business Bank Account?
Opening an RBS business bank account involves meeting specific criteria to comply with banking regulations and ensure the account suits your business needs. Here are the essential requirements:
- Age: Applicants must be at least 18 years old.
- UK Residence: The business must be registered in the UK, and the primary account holder should also be a UK resident.
- Credit Checks: RBS conducts a credit check to assess your financial standing and potential risks.
- Turnover Conditions:
- The Start-up Account is tailored for businesses under a year old with no more than £1 million in annual turnover.
- The Business Bank Account is ideal for businesses with over £1 million in turnover or those trading for over a year but with less than £1 million turnover.
- Trading History: Some accounts may require evidence of your business’s trading history, especially if you are switching from another bank.
- Unique Account Criteria:
- The Mettle Account is specifically designed for sole traders and limited companies with up to two owners and a balance under £1 million.
- The Community Bank Account is perfect for not-for-profit organisations with an annual credit turnover below £100,000.
How to Apply for an RBS Business Bank Account: Step-by-Step
Applying for an RBS Business Bank Account is a straightforward process, designed to be efficient and user-friendly. Here’s a detailed guide to help you navigate each step effectively:
- Prepare Required Documents: Ensure you have all necessary documents before starting your application. This includes:
- Proof of identity (such as a passport or driving licence)
- Proof of address (such as a utility bill or bank statement from the last three months)
- Business details (including your company registration number and annual turnover)
- Visit the RBS Website: Access the RBS website and locate the Business Banking section. Here, you can explore various account options to find one that best suits your business needs.
- Complete the Online Application Form: Fill in the application form with accurate details about your business and personal information. It’s crucial to double-check all entries to ensure there are no errors.
- Submit Your Application: Once you’ve reviewed all the information, submit your application online. This step is vital to avoid any delays in processing your account.
- Await Confirmation: After submission, RBS typically takes up to 10 working days to process applications. During this period, be ready to provide any additional information if RBS contacts you for further verification.
Comparing UK Business Banking: RBS, Barclays, HSBC, and Lloyds
| Feature | RBS | Barclays | HSBC | Lloyds |
|---|---|---|---|---|
| Free Banking Period | Up to 2 years | 12 months | 18 months | 12 months |
| Digital Integration | FreeAgent integration | SmartBusiness Dashboard | Xero and QuickBooks | Integrated accounting tools |
| Customer Support | 24/7 digital assistant | Dedicated business helpline | Business Relationship Manager | 24/7 phone support |
| Overdraft Facility | Available, competitive rates | Available, higher rates | Available, flexible terms | Available, tailored limits |
| Transaction Fees | £0.35 per automated item | £0.40 per item | £0.30 per item | £0.35 per item |
| Learn More | Visit RBS | Visit Barclays | Visit HSBC | Visit Lloyds |
RBS distinguishes itself in the UK business banking sector by offering up to two years of free banking for start-ups, potentially reducing costs significantly for new businesses. In comparison, Barclays and Lloyds offer a 12-month free period, while HSBC provides 18 months, offering a middle ground.
Digital integration is essential for modern businesses, and banks offer varied solutions. RBS enhances accounting efficiency with FreeAgent integration, Barclays improves user experience with its SmartBusiness Dashboard, and HSBC supports widely-used software like Xero and QuickBooks.
Customer support varies significantly across banks. RBS leverages its 24/7 digital assistant, Cora, for instant query resolution, contrasting with Barclays’ dedicated business helpline and HSBC’s personalised service via a Business Relationship Manager. Lloyds competes with comprehensive 24/7 phone support.
Royal Bank of Scotland Business Account FAQs
How do I open an RBS Business Account?
To open an RBS Business Account, you can apply online or visit a local branch. You will need to provide essential documents such as proof of identity (e.g., a passport or driving licence), proof of address, and information regarding your company’s structure and financial history. This process is designed to be straightforward, ensuring that you can start managing your business finances with RBS efficiently.
What fees should I expect after the free banking period?
After the initial free banking period, RBS introduces nominal charges for various transactions. Expect to pay £0.35 for each automated payment and £0.70 per £100 for cash payments. Manual payments are charged at £0.70 each. Additional charges may apply for specialist services such as BACS, which are crucial for regular business transactions.
Can I switch my existing business account to RBS?
Yes, the Current Account Switch Service (CASS) facilitates switching your existing business account to RBS. This service guarantees a smooth transition within seven working days, ensuring no disruption to your business operations. RBS aims to make the switch seamless and supports you throughout the process.
What security measures does RBS have in place?
RBS takes the security of its business accounts seriously, implementing robust measures to protect your financial information. These include biometric login options and continuous monitoring for unusual activities to prevent fraud. Additionally, RBS’s Secure Banking Promise offers protection against fraud and unauthorised transactions, giving you peace of mind when conducting business.
