Britain’s second largest bank, the Royal Bank of Scotland (RBS), has said it will guarantee interest rates on business overdrafts for the next twelve months at least.

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The Royal Bank of Scotland has written letters to thousands of small businesses informing them that their previously free bank accounts will now be charged at a flat rate of £10 a month.

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NatWest are ramping up their High Street business banking operations with the introduction of 500 new business managers across its branch network, along with a new account which waives charges on standard transactions for the first two years of a new startup’s operation.

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