Responding to the news that Royal Bank of Scotland (RBS) and Natwest are considering charging business customers to deposit money, Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said:
“Today’s warning from Natwest and RBS will be deeply concerning to small firms. FSB’s latest research shows small business confidence is already at a four year 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.
“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. One resource to consider is the Business Banking Insight website, which compares BCAs offered on behalf of every bank operating in the UK, to see whether there’s a better deal for your business.”