Banks switching thousands of customers into costly new accounts

clock

More than a hundred thousand Natwest and Royal Bank of Scotland customers are being automatically switched into current accounts with much higher overdraft charges.

The new current accounts have overdraft rates of more than 18% compared with as little as 2.5% previously, according to the Sunday Times. RBS said the move would "remove complexity for customers and rebuild their trust". A third of the account holders could see a rise in overdraft charges, it admitted. About 140,000 customers across seven old accounts will automatically be moved by the banks, both part of RBS Group. They will be switched to the Select account during April and May. Savings accounts across the group had already been "streamlined" it said.  Customers affected...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'New normal': Lessons for investors against a backdrop of uncertainty

'New normal': Lessons for investors against a backdrop of uncertainty

'There is a sense that the markets may have entered a new phase'

Kate Rainbow
clock 10 April 2025 • 3 min read
Global small-caps and the case for direct engagement

Global small-caps and the case for direct engagement

'We firmly believe these interactions have significant merit'

Tobias Bucks and Simon Wood
clock 07 April 2025 • 4 min read
Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

'The cognitive dissonance when your beliefs don't add up cause very real pain'

Chris Justham
clock 04 April 2025 • 3 min read