Our Editors Top Business Bank Account Picks

Is NatWest the Best Choice for UK Businesses? A Comprehensive Account Review

If you’re considering a NatWest business account for your company, it’s essential to weigh the benefits and limitations. NatWest offers a range of accounts designed for different business needs, from startups and sole traders to larger enterprises. This review will break down the key aspects of the account, including its features, fees, user experiences, and potential drawbacks.

Types of Business Accounts

NatWest offers several tailored business accounts depending on the size and structure of your business. These include:

1. Business Current Account: A general-purpose account that offers online and branch banking, along with access to credit and borrowing options.
2. Mettle Account: A digital-only option designed for small businesses and sole traders. It is free to use but does not provide access to credit facilities.
3. Start-Up Account: Ideal for businesses less than a year old, offering two years of free banking on everyday transactions.
4. Community Accounts: Designed for charities and non-profit organizations, providing free banking for those with annual credit turnover below £100,000.

These accounts cater to a variety of businesses, allowing you to pick the one that best aligns with your company’s structure.

Key Features and Benefits

• Branch Network: NatWest has an extensive branch network across the UK, providing in-person services along with its digital offerings. This can be a significant advantage for businesses needing face-to-face interactions.
• FreeAgent Integration: NatWest includes FreeAgent accounting software for free with most of its business accounts. This is highly beneficial for managing your finances, tracking expenses, and simplifying tax processes.
• Switching Incentives: For businesses switching to NatWest, there’s a 24-month free banking offer, which includes zero transaction fees on everyday activities during that period.
• Specialist Support: NatWest offers industry-specific support for businesses in fields like healthcare, technology, and education, providing valuable resources, including networking events and access to funding.

Fees and Costs

While NatWest offers free banking for startups, after the initial free period, businesses are moved to the standard tariff, which comes with fees. Here are some notable charges:

• Monthly Account Fee: This depends on the type of account but typically starts around £6.50 per month for basic business banking.
• Transaction Fees: Costs such as 35p per automated debit card payment, 70p per cheque, and fees for international transactions apply.
• Additional Charges: Services like overdrafts, foreign currency accounts, and certain lending products (like asset finance) can incur extra charges depending on usage.

NatWest’s fee structure is competitive compared to other traditional banks, but it’s essential to review these charges carefully based on your business’s transaction volume.

Customer Experience

The overall user experience with NatWest’s business banking is mixed, as seen in customer feedback. Here’s what users often highlight:

• Positive Feedback: Many customers appreciate the accessibility of branches and the inclusion of FreeAgent accounting software, which simplifies business management. Additionally, businesses that benefit from the two years of free banking find this an excellent start-up feature.
• Negative Feedback: Some users have expressed frustrations with the Bankline system, which is used for managing multiple accounts or foreign currency accounts. Customers have reported issues with complex login procedures, difficulties in linking accounts, and occasional delays in accessing statements. Additionally, certain services like Cora, the AI support, have been critiqued for being less intuitive.

Pros and Cons of NatWest Business Banking

Pros:

• Free banking for up to 24 months for startups.
• Extensive branch network across the UK for in-person banking needs.
• FreeAgent integration for seamless financial management.
• Wide range of account options tailored to different business types.
• Access to sector-specific advice and funding options.

Cons:

• After the free period, transaction and account maintenance fees can add up.
• Some users report difficulties with the Bankline system and customer support, especially for handling multi-currency accounts.
• Less competitive for businesses with extensive international operations due to higher fees on international payments compared to some online-only banks.
• Digital banking platforms, while functional, have received some criticism for being less intuitive than competitor offerings.

Conclusion

NatWest business banking offers a solid foundation for UK businesses, especially those starting up or requiring extensive branch-based services. The integration of FreeAgent accounting software and industry-specific support adds significant value. However, businesses with heavy international transaction needs or those looking for a more straightforward digital experience may need to weigh the potential drawbacks of complex systems like Bankline and additional fees after the introductory period.

For those seeking hands-on customer service, the ability to visit branches, and free tools like FreeAgent, NatWest remains a strong contender. However, companies that prioritize low international fees or advanced digital features might also explore alternatives to ensure the best fit for their needs.