Business banking is a cornerstone of any enterprise. With a spectrum of options available, the selection process can be overwhelming. Two stand-out options in the UK are the Bank of Scotland vs Royal Bank of Scotland (RBS). This article dives into the specifics of what each bank offers, providing comparisons of features, fees, and unique offerings. It’s designed to help you make an informed decision about which institution will best serve your business banking needs.
Bank of Scotland vs Royal Bank of Scotland (RBS)
| Features | Bank of Scotland | Royal Bank of Scotland (RBS) |
|---|---|---|
| Online Banking | Free online banking, mobile alerts | Free online banking, mobile alerts |
| Mobile Banking | App available on iOS and Android, includes mobile deposits | App available on iOS and Android, includes mobile deposits |
| 24/7 Customer Support | Available through phone and email | Available through phone, email, and online chat |
| Business Loans | Loans from £1,000 to £50,000 over 1 to 25 years | Loans from £1,000 to £50,000 over 1 to 10 years |
| Overdrafts | Overdrafts up to £5,000, subject to approval | Overdrafts up to £5,000, subject to approval |
| Invoice Financing | Invoice factoring and discounting available | Invoice factoring and discounting available |
| Business Insurance | Comprehensive business insurance options via third parties | Comprehensive business insurance options via third parties |
| Card Reader Available | Available with point of sale solutions | Available with point of sale solutions |
| Business Credit Card | 2.95% non-sterling transaction fee, up to 56 days interest-free | 2.75% non-sterling transaction fee, up to 56 days interest-free |
| Fixed Rate Savings | Fixed-term deposits from 1 to 5 years | Fixed-term deposits from 1 to 5 years |
| Variable Rate Savings | Instant access and notice accounts available | Instant access and notice accounts available |
| International Payments | Available with currency conversion charges | Available with currency conversion charges |
| Cash Management | Cash concentration, notional pooling | Cash concentration, notional pooling |
| Asset Finance | Hire purchase, leasing, refinancing | Hire purchase, leasing, refinancing |
| Trade Services | Import and export services, including letters of credit | Import and export services, including letters of credit |
| Specialised Sector Solutions | Tailored services for sectors such as agriculture, real estate, healthcare | Tailored services for sectors such as agriculture, real estate, healthcare |
| Treasury Solutions | Risk management, investment services | Risk management, investment services |
| Merchant Services | Card terminals, online payment gateway | Card terminals, online payment gateway |
| Business Mentor Services | Access to mentorship resources | Access to mentorship resources |
| Dedicated Relationship Manager | Assigned to business accounts | Assigned to business accounts |
 | Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts Pricing Trial period Contact | |
 | 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 |
Bank of Scotland
The Bank of Scotland is a commercial and clearing bank, established in 1695, offering a range of services that cater to businesses of all sizes. The bank prides itself on robust customer service and a myriad of features to support business growth and operations.
Pros and cons
Pros
- Customised banking solutions: The Bank of Scotland provides tailor-made banking solutions to accommodate the distinct needs of various industries.
- Wide range of services: From loans and overdrafts to invoice financing and cash management, the Bank of Scotland caters to every banking need a business might have.
- Digital banking options: The Bank of Scotland provides extensive digital banking features, including mobile and online banking, which gives businesses access to their accounts anytime and anywhere.
- Accessible customer support: Bank of Scotland’s customer service is available 24/7, ensuring queries and concerns are addressed promptly.
Cons
- Limited physical presence: The Bank of Scotland has a smaller physical footprint, which may be a disadvantage for businesses that prefer in-person transactions.
- Potential for additional fees: There may be extra charges for services outside the standard banking offerings.
- Complex products: Some customers report that certain banking products, like international trade services and asset finance, can be complex to understand and use.
Fees and charges
| Services | Fees |
|---|---|
| Monthly Account Fee | £6.50 |
| Electronic Payments (In/Out) | £0.35 |
| Manual Payments (In/Out) | £0.65 |
| Cash Payments (In/Out) | 0.60% of amount |
| Non-Sterling Transaction Fee | 2.75% |
Unique and standout features
The Bank of Scotland offers several unique features that set it apart.
Cutting edge payroll software
- Powerful and easy to use
- HMRC & RTI compliant
- Used by payroll pros
The CRM platform to grow your business
- Great for entrepreneurs
- Powerful data analytics
- Manage sales and data
Powerful web builder and advanced business tools
- Great for startups
- Powerful web page builder
- E-commerce available
Supercharged content planning
- Great for marketing
- Better than lists or sheets
- Manage social media
Create a new website in 10 minutes. Easy.
- Launch your website fast
- Powerful data intuitive
- No coding skills needed
Their ‘Business Toolbox’ provides businesses with access to credit and cash flow management tools, HR assistance, and legal helpline, all to help businesses thrive.
In addition, they also offer a ‘Business KnowledgeBox’ – an online resource packed with tips and guides on managing a business, from setting up to expanding internationally.
These features make the Bank of Scotland a comprehensive financial partner for any business.
Royal Bank of Scotland (RBS)
The Royal Bank of Scotland (RBS) is one of the retail banking subsidiaries of the Royal Bank of Scotland Group. RBS is known for its wide-ranging business banking services and a strong focus on customer relationships.
Pros and cons
Pros
- Strong digital platform: RBS offers robust online and mobile banking services, making account management and transactions seamless for businesses.
- Specialised banking products: RBS provides specialised banking products that cater to diverse business needs, including asset finance and international trade services.
- Dedicated relationship managers: RBS provides a dedicated relationship manager for business customers, ensuring personalised and efficient service.
Cons
- Additional fees for certain services: Like most banks, RBS may impose additional charges for services outside the standard banking package.
- Less than perfect customer service: Some customers report occasional slow responses from the customer service team.
- Fluctuating online platform performance: Although the digital platform is robust, there have been reports of occasional downtimes affecting business operations.
Fees and charges
| Services | Fees |
|---|---|
| Monthly Account Fee | £5 |
| Electronic Payments (In/Out) | £0.30 |
| Manual Payments (In/Out) | £0.70 |
| Cash Payments (In/Out) | 0.65% of amount |
| Non-Sterling Transaction Fee | 2.75% |
Unique and standout features
RBS stands out with its ‘Entrepreneur Accelerator’ – a start-up hub providing coaching, office facilities, and networking events for budding entrepreneurs.
RBS also offers ‘FreeAgent’ – a free online accounting software for small businesses, helping them manage invoices, expenses, VAT and more.
These features position RBS as a proactive partner in a business’s financial and overall operational success.
Conclusion – Bank of Scotland vs Royal Bank of Scotland (RBS)
In the realm of business banking, both the Bank of Scotland and RBS offer a comprehensive range of services.
Both banks provide robust online platforms, a broad spectrum of products, and strong customer support.
Your decision between the two may come down to the unique features each bank provides and which set aligns most closely with your business needs.
Do you prefer a bank that supports your operational needs like the Bank of Scotland, or one that aids in business growth like RBS?
Ultimately, the decision should be guided by your business’s unique demands and long-term strategy.
FAQ
Both the Bank of Scotland and RBS offer comprehensive digital banking services, including mobile and online banking. Your preference may depend on individual user interface and functionality experiences.
Yes, both the Bank of Scotland and RBS offer business loans. The terms and conditions may vary, so it’s worth comparing these before deciding.
Yes, both banks provide 24/7 customer support.
Both banks offer start-up-friendly services, but RBS stands out with its ‘Entrepreneur Accelerator’ program designed specifically for start-ups.
Yes, the Bank of Scotland offers a ‘Business Toolbox’ and ‘Business KnowledgeBox’, while RBS provides ‘FreeAgent’ software and the ‘Entrepreneur Accelerator’ program.
Yes, both banks charge fees for electronic transactions: £0.35 per transaction for the Bank of Scotland and £0.30 for RBS.
Yes, both banks provide the option to open a business account online.