Don’t blink twice! You really did read the title of this blog correctly…
RBS are paying their own customers to switch to a different bank account!
What Is Going On At RBS!?
10 years ago, the Royal Bank Of Scotland received financial support from the UK Government.
You might remember during that time the UK went through a ‘credit crunch’ and banks such as Northern Rock & The Royal Bank Of Scotland were in big trouble.
For Northern Rock, their only option was to go into public ownership as an alternative to insolvency.
The Royal Bank Of Scotland however, accepted an agreement where the British Government would take an 81% shareholding in the company.
In this deal RBS agreed to a commitment to help increase competition in the UK business banking scene.
Their initial plan had been to set up their dormant Williams & Glyn brand name as a new bank and switch its customers over to this new offshoot.
However, these plans have not come to fruition and in 2017 they agreed a deal with the European Commission to set up something called the Business Banking Switch.
What Is The Business Banking Switch?
The business banking switch is a new scheme.
The website greets you with this offer: ‘Choose from cash incentives and more when you switch your business current account to a participating bank.’
Those eligible to switch are RBS business current account holders that meet their criteria, and the banks that you can switch to have been selected by an independent body:
– Arbuthnot Latham & Co., LTD
– Clydesdale & Yorkshire Bank
– The Co-operative Bank
– Habib Bank Zurich plc
– Hampden & Co.
– Metro Bank
– Santander UK
– Starling Bank
It is reported that RBS must offload 120,000 customers before August 2020, in order to be compliant with their agreement. If they are unsuccessful they will be fined around £50 million.
Should You Switch Now Or Play The Waiting Game?
If your business is banking with RBS, you first need to enter your account details into the website here, and then you will be able to browse the cash incentives and other offers to switch.
It’s worth bearing in mind that it’s rumoured that if the clock ticks down, and they still haven’t switched enough of their customers, RBS may have to offer even bigger and better deals to switch than they are now.
If RBS haven’t reached their target: they will be fined. As their deadline approaches they will likely be forced to increase these incentives.
So, the question is – should you switch now, or play the waiting game?
Once the 120,000 required businesses have switched – the offer will undoubtedly be pulled from the table.
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