Rival ATM ban for ‘basic’ account holders

Changes brought in by RBS last month to its ‘basic’ account have resulted in customers only being allowed to withdraw money from ATMs operated by the company.

Those signing up to the ‘basic’ account pay no fees and are already unable to hold a chequebook or have an overdraft.

RBS would not confirm how many people are affected by the move, but it could be as many as 8,000. A spokesman for RBS said: “We are fully committed to offering a free basic account for people who may otherwise struggle to access banking services.

“Our basic account holders will still enjoy free access to one of the largest ATM networks – over 8,000 – in the UK, through RBS, NatWest and Tesco.”

Marie Burton, financial inclusion expert at Consumer Focus, said: “This is a kick in the teeth for many of RBS’s most vulnerable customers.

“We would call on RBS to reconsider this move which will exclude its basic bank account holders from using the majority of the UK’s free cash machine network.

“Short-sighted moves like this will only help to reverse the good work that has been done.”