Natwest letter received "ceasing banking relationship" - what on earth is going on?

[SWnewstart]

I've banked with Natwest for approx 45 years, same current account and more recently a little saver account with less than £30 in it. Came back from holiday 2 days ago to a pile of post amongst which was my salary slip from part-time job, a new bank debit card to replace the current one expiring at the end of June and a letter from Natwest starting off "were you aware that we couldn't make some of your payments because there were not enough available funds in your account" - NOT TRUE.

I immediately went online and checked - there was approx £800 and I don't have any regular payments more than £40 a month (retired and mortgage free). The strange bit is that under the heading of What Items Have Not Been Paid were details of my employer and salary which obviously goes into the account, not out of it! The online statement didn't show my salary at all for May. I contacted the virtual assistant at Natwest who could only advise me to speak to my employer. I did this the next day, only to be told the payment had been returned and had I changed account details or anything? No, nothing changed at all. This morning my employer advised they had again made a BACS payment for my May salary and to let them know if it worked. I checked and the payment was in my account.

However, in the post today was another letter from Natwest stating that "we regret to inform you that following a recent review we have decided to cease our banking relationship with you as from 1 August 2022". I immediately tried calling the Shared Services in Manchester on letterhead but number just rang out. The letter also says this decision is final and they are not able to discuss the decision with me or provide any further information in relation to the decision making.

Are there any Natwest people out there who could shed any light on this (or any other bank staff). What on earth is going on? I'm worried sick.

What's this about not being able to have more than one current account? I have two which I use for different purposes and when I just checked on my banking app I have the option to open another one.

It would be very odd if that was the OPs problem and you would hope they would have spoken to her.

This is interesting.

I have about 5.

It’s nonsense.

What do you mean, why not?

I’ve got about eight.

My bank recently asked me if I wanted to set up a second current account.

You generally can’t have more than one current account , effectively

I have three. With the same bank. Plus the joint household current account with a different bank.

Most banks really don't care how many current accounts you have or (to an extent) what you use them for. I have a personal current account as a business account, it even says "Trading acc" in the account description. What they care about is how much you cost them to provide the account. They don't like lots of small transactions, so this may be what you mean by "effectively". One account with multiple daily transactions is ok, but if you have three or four with that pattern they'll want to convert some of them into non-free accounts.

I'd heard this before and actually asked my bank before I opened a second account a couple of years ago and they said it was a total myth. (Barclays)

I also checked with TSB who I was opening my second account with and they said the same. It's totally fine to have multiple current account accounts.

I opened a monzo one and I checked again and was told the same.

Not one of the three said generally you can't unless you meet certain conditions. My bank apps even allow you add current and saving accounts with other banks to be viewable in their own app due to banks and government working together to provide Open Banking.

Financial regulator is crystal clear on this

yws you can have two current accounts with DIFFERENT banks

no you can not have two current accounts with the SAME bank

Sorry posted to soon.

IF you want to enjoy the £85k compensation . Scheme

so… if you have two current accounts with SAME bank, you will only receive a max of £85k comp

whereas current account with DIFFERENT banks you would be entitled to receive £85k x 2 comp

But who has £85,000 in a current account?

But if you had £7k In one
and £8k in another
you would only be entitled to compensation for one account of same bank

i didn’t think I needed to clarify that £85k was maximum

And many people do if they sell their home and need cash immediately available so can move fast to purchase another.

@Blimeyherewegoagain from a property or other large sale, inheritance, when moving accounts and investments, savings.
High earnings and low outgoings. Lots of ways.

“The compensation limit is £85,000 per bank or building society. If you have money in multiple accounts with banks that are part of the same banking group, they are treated as one bank. This means that the compensation limit applies to the total amount you hold across all these accounts, not to each separate account.16 May 2019”

it’s for multiple accounts within one financial institution. So my 2 current accounts with one bank are protected

only if combined they are equal to or less then the compensations limit.

Yes

Then you are ok. Just keep an watch on your accounts to ensure that combined, or singular they do not exceed the compensation limit. If they do, then if you wish to be covered by the compensation scheme, you will need move some money to another separate financial institution. (Or spend it😀)
Always wise to take professional advice too.

Yes you can, I have several with each bank. Why are you making this stuff up? It’s rubbish, and of course the regulator doesn’t say this.

Which is nothing to do with your ludicrous claims.

@NotKevinTurvey unfair. What oh that’s exciting said is true, if you read it as one continuous post. The poster apologised for hitting send too soon. It’s a failure of the MN site for not allowing posters to re edit their post.
We are all human and capable of hitting post too soon.

Lloyds is part owned by Natwest so their internal systems are problem linked in someway.b

This is where the confusion is coming from - @Ohthatsexciting seems to say if you have 8K in one account and 7k in another with the same bank you will only get compensated for one of the accounts. It’s not true. They add up to <£85k so it’s all good.
And if they were with different banks you’d also be fine 🤷‍♀️

Call the local branch aand make an appointment to see the manager.

We left NW many years ago after a similar fiasco (by their staff) in which our very healthy credit balance was entered on their records as a huge unauthorised overdraft, paralysing all our payments and withdrawals.

That is really not true. My husband has 3 current accounts with 3 separate banks and I have 3 current accounts with 2 separate banks. What on earth makes you think current accounts are rationed.