Decision on Santander accounts

The Spanish bank is buying 318 RBS and NatWest branches for 1.65bn, and as part of the deal current account customers at these branches will automatically transfer to Santander.

RBS is not allowed to do anything to encourage customers at these branches to stay with it, and there is no information on its website about what people can do if they do not want to transfer to Santander.

However, it has emerged that if people do not want to switch to the Spanish bank they can telephone RBS's helpline on 0800 210 0214, and request a form which will enable them to continue banking with it.

RBS is selling all of its NatWest branches in Scotland and all of its RBS branches in England and Wales to Santander.

The move, a condition of the Government bail-out of the group imposed by the European Commission, will affect 1.8 million customers. The transfer is due to take place within the next 12 to 18 months.

Customers who decide to switch to Santander will be treated as new customers by the bank. As a result, they will qualify for the 100 the bank is giving people who switch their main current account to it, as well as interest of 5 per cent for the first year if they are in credit.