Natwest and RBS customers: should you stay or go?

By Staff Writer Ruth Jackson Oct 01, 2010

Ruth Jackson

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If you are a NatWest or Royal Bank of Scotland (RBS) customer you might not be for much longer. The state-backed banks have been forced to sell branches to Santander to satisfy European competition rules. Anyone who opened a current account, savings account or took out a mortgage at any of the 311 RBS branches in England and Wales, or the seven NatWest branches in Scotland, will automatically become Santander customers over the next year.

"No RBS or NatWest customers will be worse off as a result of the transfer," says a Santander spokesman on Thisismoney.co.uk. But they won't confirm what interest rates transferred customers – borrowers nor savers – will get. Luckily, you don't have to be a passive bystander. Under the terms of the deal NatWest and RBS aren't allowed to encourage customers to stay, but you can call 0800-210 0214 and request a form to fill in so you can stay with them. But before you do so, consider whether you are getting the best deal.

RBS's current account doesn't pay any interest if you are in credit. Conversely, drop into the red and you'll face an overdraft rate of 18.28%. There are some far better current accounts out there. The best on offer are, in fact, provided by Santander – you can choose to either have a current account with an interest-free overdraft for the first year or one that pays 5% on balances up to £2,500.

However, the bank hasn't clarified yet whether transferred customers will be eligible for these introductory offers. So switch now and guarantee yourself the better deal. As for savings accounts and mortgages, whether you switch or not depends on how good your current rate is, but it's definitely worth shopping around – whatever rate Santander offers its new customers, they are unlikely to be the best available, given that the bank will get most people's custom regardless due to inertia.

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Published in Personal finance | More articles by Ruth Jackson

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  • 1. Andrew

    (05 October 2010, 05:54PM)  Complain about this comment

    Alliance & Leicester / Santander has terrible customer service in my experience. It might change once all the kinks from the takeover are sorted out, but I'm not waiting that long. My branch has always been understaffed and the information provided often wrong. I once waited 20 minutes in a queue only to discover they just couldn't do what I wanted in branch, despite them telling me I could. Phoning once I got back was no better, 20 mins on hold to find out I couldn't do it there either and had to go back to the branch instead. I'm switching back to NatWest and won't be tempted by a Santander current account for a good few years. Their generally higher interest rates aren't worth the hassle!

  • 2. Jennifer

    (05 October 2010, 06:20PM)  Complain about this comment

    I agree with Andrew... I originally had everything with Abbey - personal and business and they were great, very helpful, nothing too much trouble. Then they were taken over by Santander and I will never forget the grief we had - we could not get any money out of the current account, deposits went missing, we spent hours on the phone trying to get through to someone. No one would deal with anything in branch - it all had to be done via a call centre. Never ever again. I closed everything and went to HSBC in Dorchester... great service. Even the bank manager works behind the counter some days.

    Be warned... leave as soon as you can.

  • 3. Pedros

    (05 October 2010, 08:32PM)  Complain about this comment

    I can't believe that the customers were sold with the branches!

    Surely the premises are tangible for sale, but the customers chose Nat West as their bank as apposed to Santander. This is very wrong and does not take into account the customers needs.
    I for one will vote with my feet and stay well away from Santander.

  • 4. Drew

    (06 October 2010, 10:33AM)  Complain about this comment

    If you fancy a free heart attack, clinical depression and losing your money - allow yourself to be sold to Santander.
    Look no further than the wreck that is the Spanish economy to understand why banking with a Spanish bank is an act of great courage - and stupidity.

  • 5. Richard

    (07 October 2010, 10:42AM)  Complain about this comment

    I left RBS to join Santander purely as a protest against Fred Goodwin's unjust payoff and the demise of their interest paying current account. After switching I got a £100 from Santander and a really good rate of interest for the first year. OK, Santander's customer service leaves a LOT to be desired but as I do most stuff online this hasn't been a problem so far.

  • 6. Annabel Schneider

    (30 October 2010, 05:38PM)  Complain about this comment

    They can't sell customers. They sold the accounts of the customers so you can close your account and join another RBS branch or any other bank and if the EU interferes to force RBS to do anything else you can take a case to the EU court for discrimination and attack on human rights because you have a right to choose vhere you bank.
    Santander is a farce. Ve have our respectable banks vho built their business on hard vork and reputation alone. Ve do not like Santander even to say this name and ve do not have to be forced to change our language for anyone. This is an attack on this country. The EU likes to attack Great Britain vhen it is Great Britain that makes it so great! You can't give chances to people like Santander that steals all the skills and people from this country. As soon as I can get a mortgage somevhere else I vill leave "Santander". They are scavengers. Don't be cheap to be fooled by special rates. You are vorth more than that.

  • 7. Annabel Schneider

    (30 October 2010, 05:55PM)  Complain about this comment

    All foreign banks in the UK have respect for the country except Santander. They set up their branches from scratch and do not tresspass where they are not welcome. That is fair competition and open trade. Free trade does not mean right to buy out the citizens of the country on the cheap. This is where the government is supposed to step in. Santander is fighting against the grain. They have no purpose so are resorting to freebees to buy out the public. People who buy into it are picking up the rubbish that falls on the ground. It's not worth it and doesn't help anyone. If you are the wrong way you don't get in and no amount of money is going to help. I invest only in genuine banks and building societies such as RBS, Nationwide and HSBC. People need to wake up a bit to realise we already have everything and nobody else has anything else to offer.

  • 8. Edward

    (05 November 2010, 09:58AM)  Complain about this comment

    I have just phoned the number quoted in your article and the RBS Helpline who answered deny any existence of such a form and tell me that all I can do is call NatWest. Obviously,leaving Santander is going to me made as difficult as possible.

  • 9. Ann

    (11 November 2010, 02:32PM)  Complain about this comment

    Stay with RBS - you have to inform them you want to keep your account or they will close it. You could also change to Natwest I opened an acount with them. You can also complain to the European competitions body that your rights have been denied.
    Don't sell up this country for £100 cheap bonus.

  • 10. Ann

    (11 November 2010, 02:34PM)  Complain about this comment

    Does anyone remember that Santander doesn't really exist. when will people wake up and realise we don't like Spanish banks in the UK

  • 11. Ex Abbey staff left when Spanish took over

    (20 December 2010, 05:16PM)  Complain about this comment

    Looks like the press have done a great job of confusing the public again. If you bank with Natwest in Engalnd & Wales you are not affected!!!!!!!! Only if you hold an account with them in Scotland (number of NW branches is in single figures so not many) does it really matter.

    If you hold an account with RBS in England & Wales then sadly you will have to learn Spanish as your nearest RBS will be in Scotland!!!!!!!!!

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