Choosing the right bank for your business is a critical step in ensuring financial stability and fostering growth. It’s an important decision that hinges on various factors such as financial products, services, and customer support. Today, we will scrutinise two of the UK’s top banking institutions, the Royal Bank of Scotland (RBS) vs TSB. Both are renowned for their exceptional business banking services, but how do they stack up against each other?
RBS vs TSB
| Feature | RBS | TSB |
|---|---|---|
| Online Banking | Comprehensive online banking platform with real-time account access, invoicing services, and cash flow forecasting | Standard online banking platform with real-time account access |
| Mobile Banking | Robust mobile app with full banking services, alerts, and cash flow tracking | Mobile app with full banking services and alerts |
| Customer Support | 24/7 customer service via phone, email, and online chat | 24/7 customer service via phone and email |
| Overdraft Facility | Available, with interest rates between 5-10% EAR (variable) | Available, with interest rates between 5-15% EAR (variable) |
| Business Credit Card | Available, annual fee of £30 | Available, annual fee of £32 |
| Business Loans | Range of business loans available with competitive interest rates | Range of business loans available with competitive interest rates |
| Fixed-rate Business Accounts | Available, competitive fixed rates | Available, competitive fixed rates |
| Variable-rate Business Accounts | Available, competitive variable rates | Available, competitive variable rates |
| Cash Flow Forecasting | Available on online and mobile banking platforms | Not available |
| Invoicing Services | Available on online and mobile banking platforms | Not available |
| Automated Expense Tracking | Available on online and mobile banking platforms | Not available |
| Business Mentor Support | Available, with dedicated business managers | Available, with dedicated business managers |
| Free Business Current Account Period | Up to 24 months | Up to 18 months |
| Fee-free International Payments | Available, but limited | Not available |
| Dedicated Business Manager | Available, provides personalised business advice | Available, provides personalised business advice |
| Fraud Prevention Tools | Advanced fraud prevention tools and security measures | Standard fraud prevention tools and security measures |
| Business Savings Account | Available, competitive rates | Available, competitive rates |
| Merchant Services | Available, offers card payment services for businesses | Available, offers card payment services for businesses |
| Free Text Alerts | Available, real-time alerts for account activity | Available, real-time alerts for account activity |
| Personalised Business Advice | Available, through dedicated business managers | Available, through dedicated business managers |
| Startup Support | Comprehensive startup support including mentorship, resources and tools | Free business banking period and resources for startups |
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 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
RBS (Royal Bank of Scotland)
The Royal Bank of Scotland (RBS) has a long-standing history in UK banking and is recognised for its solid business banking offerings. They are dedicated to empowering businesses of all sizes, from startups to large corporations, and have a robust selection of banking products and services.
Pros and cons
Pros
- Comprehensive Business Products: RBS offers a wide array of business banking products, including loans, overdrafts, business accounts, and more.
- Excellent Online and Mobile Banking: RBS’s digital banking platforms are user-friendly, providing a convenient way for businesses to manage their finances.
- Specialised Support: RBS offers dedicated business managers and mentor support, aiding businesses with personalised advice and guidance.
- Strong Security Measures: Their fraud prevention tools and security measures ensure the safety of your business transactions.
Cons
- Limited Free International Payments: While RBS does offer international payment services, they are limited and come with additional charges.
- Can be Costly: After the initial free period, some services can become quite expensive.
Table of fees and charges
| Service | Fees |
|---|---|
| Business Current Account | £5 per month |
| Business Credit Card | £30 per annum |
| Overdraft Facility | 5-10% EAR (variable) |
| International Payments | £10-£30 per transaction |
| Cash/cheque Handling | 0.60%-1.50% |
Unique and standout features
RBS’s standouts include their comprehensive digital banking platforms and specialised business support.
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Their online and mobile banking platforms provide real-time access to account information, cash flow forecasting, automated expense tracking, and invoicing services.
These features enable businesses to efficiently manage their finances anytime, anywhere.
The bank’s business mentor support and dedicated business managers set it apart.
These resources provide businesses with personalised advice and guidance, aiding them in making informed financial decisions.
Additionally, RBS’s strong commitment to startup support ensures that new businesses have the tools they need to thrive.
TSB
TSB Bank, a high-street name in UK banking, is known for its straightforward banking solutions. They provide a range of business banking services designed to cater to both small and medium-sized businesses, emphasising on making banking simple and transparent.
Pros and cons
Pros
- Straightforward Banking: TSB offers easy-to-understand and uncomplicated business banking services.
- Competitive Rates: Their business banking products often come with competitive interest rates and terms.
- Good Customer Service: TSB has a reputation for providing excellent 24/7 customer support.
- Free Business Banking Period: TSB offers a longer free business banking period compared to other banks.
Cons
- Lack of Advanced Digital Features: Unlike RBS, TSB does not offer advanced features such as invoicing services and automated expense tracking.
- Limited International Business Services: TSB does not provide free international payments, which might be a disadvantage for businesses with global transactions.
Table of fees and charges
| Service | Fees |
|---|---|
| Business Current Account | £5 per month |
| Business Credit Card | £32 per annum |
| Overdraft Facility | 5-15% EAR (variable) |
| International Payments | £15-£25 per transaction |
| Cash/cheque Handling | 0.65%-1.50% |
Unique and standout features
TSB prides itself on its simplicity and straightforwardness.
Their business banking products are easy to understand, making it easier for businesses to manage their finances effectively.
Additionally, their competitive rates on business products offer businesses a cost-effective banking solution.
TSB’s commitment to excellent customer service, including their dedicated business managers and 24/7 support, ensures businesses receive the help they need, whenever they need it.
Their extensive free business banking period also allows businesses to manage their finances without worrying about banking costs in their early stages.
Conclusion – RBS vs TSB
Both RBS and TSB offer robust business banking solutions, each with their unique strengths.
RBS stands out with its advanced digital features and specialised support services, making it an excellent choice for businesses seeking comprehensive banking solutions.
TSB, on the other hand, offers straightforward and competitively priced services, making it ideal for businesses that value simplicity and cost-effectiveness.
Ultimately, the choice between RBS and TSB will depend on your business’s specific needs and preferences.
It’s crucial to consider the features that are most important to your business, such as digital banking capabilities, international payment services, or the cost of banking services.
FAQ
Yes, both RBS and TSB offer a free business banking period. RBS offers up to 24 months, while TSB offers up to 18 months.
RBS offers more advanced digital banking features, including cash flow forecasting, automated expense tracking, and invoicing services.
Both banks offer international business services. However, RBS provides limited free international payments, while TSB does not offer this feature.
Both banks provide startup support. RBS offers a wide range of specialised support services, while TSB’s extended free banking period can be beneficial for startups managing their initial costs.
Yes, both RBS and TSB offer business credit cards. The associated annual fees and benefits may vary, so it’s best to review each bank’s specific offerings.
Both banks provide overdraft facilities, but the terms and interest rates can vary. RBS typically charges 5-10% EAR (variable), and TSB charges 5-15% EAR (variable). Always check the most current rates.