RBS to reportedly start charging some corporate clients for deposits

Royal Bank of Scotland has reportedly contacted some of its investment banking customers to warn them of new charges from Monday.

Some of the bank’s large corporate clients will have to start paying to hold cash in their accounts, sources told Reuters, making the lender the first in Britain to charge negative interest rates on deposits.

The charges are expected to affect clients who trade futures and options contracts that must be processed via clearing houses in Europe.

RBS is said to be passing on the negative rates those clearing houses have charged. The move comes after the European Central Bank cut key rates earlier this year.

The ECB’s deposit facility is currently in negative territory at -0.40% to encourage banks to continue to lend amid lacklustre economic growth.

RBS could not immediately be reached for comment on the report.