Britain’s position as a global financial services hub is certainly not well reflected in the conduct of the particular bank I chose when I arrived in Oxford. Despite my dissatisfaction, however, the sheer level of hassle involved in switching banks as an international student will probably keep me where I am. I post this as a warning to those who will come after.
I continue to be astonished by how bad the online banking offered by NatWest is. The password system is frustrating and insecure. It’s impossible to pay your NatWest credit card bill online, even when you applied for it at the same time as you created your account. The site doesn’t even let you transfer funds between your chequing and savings accounts, unless you go set it up to do so in person. They also managed to forget to pay interest on my savings account for February. Those considering opening a bank account in the United Kingdom should absolutely avoid this bank.
Part of the problem is how NatWest has two separate divisions: one that runs the branches and knows nothing about the credit cards and web banking, and another that plays the opposite role. Despite the apparently clear delineation of duties, there seem to be serious communication problems between the two. They also have some truly bizarre rules about documents they can only send to your permanent address, even when it’s outside the U.K. and they know that you will not be there. Add to that high service charges (ie. $25 for a bank draft) and low interest (less than the rate of inflation) and you can understand the reasons for my dissatisfaction.
[Update: 20 May 2006] Another really awful thing about NatWest is the way their credit card payments work. At the start of the month, I am automatically billed some random amount between five and twelve Pounds. If I cancel the automatic payment, I get fined – even if I don’t owe any money. Since I almost never use the card now, that means I am building up more and more of a positive balance. Even so, they will ocassionally charge me a Pound or so of interest… seemingly at random and despite the fact that I don’t owe them any money. I’ve tried calling their telephone support line for an explanation, but I was kept on hold for ages and finally turned over to someone who didn’t seem to know anything she wasn’t reading straight off her screen. Completely unacceptable, all in all.
[Update: 12 February 2007] The NatWest Online Banking site now allows me to pay my credit card online. Previously, I couldn’t do anything but move money from my savings account to my chequing account, and not the converse. This is a distinct step forward.