RBS introduces negative interest on deposits of the first British banks

Royal Bank of Scotland (RBS) on Monday will begin to charge a number of major corporate clients interest on deposited funds on deposit in the bank, the newspaper Financial Times.

Thus, the RBS is the first of the British banks, introducing negative interest rates on deposits.

According to the FT sources, this step will affect the RBS clients who trade futures and options, and using the funds on deposit in the bank as security for transactions.

RBS offered to customers to use as collateral in transactions in securities, to avoid the cost, the source said.

In July, RBS warned that it may require the payment of interest from customers for keeping funds in bank accounts in case of reduction of the Bank of England base interest rate to a negative level.

At the meeting of 4 August the Bank of England lowered its rate from 0.5% pa to 0.25% - a new historical minimum. Previous level rate remained unchanged from March 2009.