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RBS

Why are banks planning to charge business customers to deposit money?

"The basic business model of high street banking is to profit from the “margin” between the interest rate at which banks lend to borrowers and the interest rate they pay out to depositors. The Bank of England sets the costof borrowing throughout the economy with its base rate, dragging the private banks in its wake. When the Bank cuts the base rate low the interest rate charged on the borrowing of the public (mortgages, personal loans and business loans) also gets squeezed down.

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