NatWest making major change to bank accounts – and thousands will pay £100s more

Scottish Sun

5 days ago

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NATWEST is shaking up its banking charges, leaving thousands of customers facing higher costs for everyday transactions.
The bank is making changes to its business current accounts by increasing fees for cash payments, cheque transactions, and certain online transfers.
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NatWest said that the new charges will remain fixed until at least September 2027
Credit: PA
From August 30, cash payments into and out of business accounts will see their fees surge from 70p per £100 to 95p per £100.
Cheque payments, whether processed by hand or via mobile, will also jump from 70p to 75p per cheque.
The bank is also increasing some charges related to its BACS payment system.
The BACS system is a UK payment network used by businesses to make electronic bank-to-bank transfers, such as Direct Debits and Direct Credits.
The fee for processing each individual payment or instruction, will soon rise from 18p to 21p.
The cost to process a file containing multiple payments or instructions will also increase slightly from £5.25 to £5.35.
Business bank accounts are used by self-employed individuals, small business owners, charities, and community organisations to manage their finances.
A spokesperson for NatWest said: "NatWest is changing the prices of some business banking services.
"It's been seven years since day-to-day banking charges have changed for our business customers.
"The cost of providing services has gone up so we've had to review our charges."
Switch bank accounts for free perks
NatWest said that the new charges will remain fixed until at least September 2027.
However, not all customers will need to pay them, as eligibility depends on individual circumstances.
Businesses and organisations with free banking are not affected by the rising charges right now.
This includes new businesses with turnover under £1million, who get free banking for their first two years.
Charities and community organisations with turnover under £100,000 are also included, as long as they stay eligible.
Established businesses with turnover under £2million are covered too, but only for two years after switching accounts using the Current Account Switching Service.
NatWest continues to offer business bank accounts without a monthly fee.
Several other banks, including HSBC, Virgin Money, Monzo, and Co-operative Bank, also provide business banking with no monthly fees.
However, service charges differ, and not all digital banks allow cash deposits or withdrawals.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
What other bank account changes are on the way?
Santander customers have been left outraged after the bank revealed it will start charging £120 a year for an account it promised would be "free forever".
Thousands of small business and self-employed account holders are facing £9.99 monthly charges from October.
This comes despite written assurances that their accounts would always remain free of fees.
The changes will impact three types of business accounts: 1|2|3 Business Current Accounts, Business Everyday Current Accounts, and Business Current Accounts.
The "free forever" promise applied to accounts offered by Abbey and Alliance & Leicester before the 2008 merger with Santander.
The bank first attempted to introduce fees for these accounts in 2012 but backed down after customers threatened legal action.
However, these accounts were shifted to the Business Everyday account in 2015, which did not include the "free forever" promise.
From October 1, these accounts will be closed, and customers will be automatically switched to Santander's new Business Current Account – Classic.
Under the new structure, every Business Current Account – Classic will incur a £9.99 monthly fee, regardless of the type of account customers previously held.
While some accounts were free, others offered additional benefits with charges as high as £40 per month.
The bank is closing its 123 Lite current account, which offers up to 3% cashback on household bills for a £2 monthly fee, on August 21.
Customers affected by the closure will be automatically switched to Santander's Everyday Current Account.
This account has no monthly fee but does not include cashback benefits.
Meanwhile, customers of Lloyds Bank, Halifax and Bank of Scotland will soon lose the ability to deposit their cheques at any of the 11,500 Post Office branches nationwide.
From December 31 this year, Lloyds Banking Group will withdraw this service for all customers.