What is the Business Banking Switch Scheme?
Written by Robert Bester, Consumer Finance Expert Robert has been a writer for six years, specialising in consumer finance and the UK lending market. Concentrating on consumer credit products, Robert writes informative articles that help customers manage their personal finances efficiently.
30th November 2020
2 minute read
By switching your business bank account, you can often reduce the amount you pay in monthly fees by taking advantage of an introductory period of free business banking. The cherry on top is that if you switch from RBS or NatWest to another selected provider, you will receive a further incentive.
Am I eligible to apply?
- Currently hold a business bank account with either RBS or NatWest
- Would like to switch to another business account provider (included in this list)
To find out more about the Business Banking Switch scheme from RBS and NatWest, we’ve put together a useful guide that should clear things up. It includes what the scheme is, how it came about in 2008, which banks are involved in the scheme and if you’re eligible to apply.
If you aren’t a customer of RBS or NatWest and would still like to switch, check out our switcher comparison table to find the best business bank account for you.
What is the business banking switch scheme?
It is an offer launched in February 2019 to encourage customers to switch from RBS or NatWest to other participating banks. This is a way of encouraging further competition in the marketplace, assisting the growth of smaller banks and providing customers with further incentives, such as cash, for doing so.
Background of RBS and NatWest
In 2008, the Royal Bank of Scotland Group (who also own NatWest) had to ask the government for money in order to ‘bail them out’. This was due to financial difficulties following a takeover of Dutch bank ABN Amro. In total it was given £45bn to stabilise the business, despite RBS now operating at a loss for over 10 years.
Part of the government bail out was the stipulation that RBS Group had to encourage further competition in the market by encouraging customers to switch to other rival banks. Therefore, the Business Banking Switch scheme was launched in February 2019, encouraging business customers to switch to participating banking providers.
How do I participate in the scheme?
If you are eligible to switch to a new business bank through the scheme, you will need to follow these steps:
- Head to the NatWest site or RBS site to apply
- Enter your Account number and Sort code to confirm your eligibility
- Browse through available offers from participating banks
- Choose offer and apply
If you are not eligible to continue with the Business Banking Switch scheme, head over to our switcher comparison tables to find another provider. You will still be able to claim switch incentives that are available as standard from certain providers.
Which banks can I switch to through the scheme?
Certain banking establishments have agreed to be a part of the scheme, so you will only be able to choose a bank from the list in order to receive an additional incentive. The following banks are included in the scheme:
- Starling Bank
- Metro Bank
- Hampden & Co
- Habib Bank Zurich PLC
- The Co-operative Bank
- Clydesdale & Yorkshire Bank
- Arbuthnot, Latham & Co
If the bank you were thinking of switching to isn’t included in the list above, you might find it on our switcher comparison table here.
What are the extra incentives?
The additional incentives or offers you can claim will vary between cash and other exclusive offers available from certain providers. It might be an extended period of free business banking that you can take advantage of, or even access to premium benefits that you might have had to pay for as a regular customer.
Once you enter your details and are confirmed as eligible, you will then be able to see relevant offers to you and be able to choose the best one.
Make the business banking switch
Make sure you find the right business provider for your circumstances. Whilst you won’t always find a good deal through the scheme described above, you can still make the switch to a bank of your choosing and receive switch incentives that will directly assist you as a business owner. Use the button below to head to our switcher comparison table and get started. Good luck!