DON'T BANK ON IT Natwest warns plans to charge customers to hold savings will soon become a reality - TS

NATWEST has warned it may introduce negative interest rates in a UK first, effectively charging punters to hold savings.

The bank raised the possibility in a letter to its 850,000 business customers — from big firms to the self-employed.

It warned of “charging interest on credit balances”, blaming low, and negative, global interest rates.

The move would mean customers would be paying to deposit cash.

NatWest, whose parent is the part State-owned Royal Bank of Scotland, said the plans would not affect personal account holders.

In a letter to customers, the bank says: “Global interest rates remain at very low levels and in some markets are currently negative.

“Dependent on future market conditions, this could result in us charging interest on credit balances.”

NatWest says it has no current plans to change the terms and conditions of personal account holders, introducing negative interest rates for them.

Some of its business customers last night questioned whether negative interest rates are even legal.

But experts warned they may too be affected, and other banks could follow suit. Savings guru Ray Boulger said “personal customers with large balances could be hit”.