The Courier & Advertiser (Fife Edition)
Business account charging concern
The Federation of Small Businesses (FSB) says the possibility of the Royal Bank of Scotland and Natwest charging business customers to deposit money is of deep concern.
FSB national chairman Mike Cherry said: “Our latest research shows small business confidence is already at a fouryear low.
“Firms are less optimistic, cutting headcount and curbing investment intentions.
“When the Monetary Policy Committee meets next week to decide on interest rates, we would call on them to do everything possible to consider the implications of changing interest rates for smaller firms and the self-employed looking to maintain or grow their business.”
He added: “It is now vital that all finance providers holding deposits from small businesses do everything they can to update customers concerned about any changes to their Business Current Account (BCA) during this uncertain economic period.
“We would also encourage small firms themselves to take action and consider whether it’s worth switching to a more competitive BCA.”
The Royal Bank and Natwest have warned businesses they may have to charge them to accept deposits due to low interest rates.
The move, if enacted, would make them the first UK banks to introduce negative interest rates, in effect, charging to deposit money.
“Global interest rates remain at very low levels... this could result in us charging interest on credit balances,” it wrote in a letter to customers. Personal customers are not affected.
Charities and community groups are counted as business clients and would also be affected by the changes, the banks said.
A spokesman for the Royal Bank of Scotland, which owns NatWest, said the letter was sent to just under 1.3 million of the combined business and commercial customers of the two banks.
“We will consider any necessary action in the event of the Bank of England base rate falling below zero, but will do our utmost to protect our customers from any impacts,” he said.