Drummonds and Child & Co: what they are and who runs them

Drummonds and Child & Co are two of the oldest names in British banking, both now run as private banking services rather than high street branches. They offer relationship managed current accounts, savings, lending and wealth services, with day to day banking by phone, app and a named contact rather than over a counter.

They sit in the same banking group as NatWest and Royal Bank of Scotland, which matters most for one practical reason: money held across those brands counts together towards a single compensation limit if the bank fails.

This page explains what each brand offers, how charges work, who can bank with it, how to open an account, how the two names sit alongside NatWest and Royal Bank of Scotland, and how your money is protected.

Two historic private banking names

Drummonds and Child & Co are private banking brands with long histories in London. They are not separate banks in the sense of holding their own banking licence; they operate within a larger group, in the same way that other groups run several brands under one authorised firm. The Bank of England's explanation of the compensation scheme gives the clearest example of how this works in practice: HSBC operates under brands including HSBC Private Banking and First Direct, all under the same firm².

That structure is the single most important thing to understand about these two names. It means the brand on your statement is not the same thing as the firm that holds your money. When you are working out how much of your balance is protected, you look at the firm, not the brand.

Both brands are private banking services, which in practice means a relationship managed service rather than a branch network. The day to day experience is closer to telephone and online banking with a named contact than to walking into a local branch. If you are looking for a standard current account with a branch on the high street, the current accounts guide covers how those work.

Accounts and services each brand offers

Private banking services of this kind typically cover current accounts, savings, lending including mortgages, and investment or wealth management arranged through the group. The exact product set available to you depends on the relationship and on what the bank offers at the time, and the terms are set out in the account documentation you receive.

What is consistent across the group is the underlying banking infrastructure. Online banking with most banks lets you check your balance at any time of day or night, check your bank statements, transfer money between your accounts, send money to people you know, and set up or cancel direct debits and standing orders¹. Most banks also provide smartphone and tablet apps, so once you have set up online banking you can download the app for your device¹.

For savings held with either brand, the savings guide explains how interest is calculated and what to check. For borrowing, the mortgages guide and the loans guide set out how lenders assess affordability and what the costs are. Where a private banking service arranges investments, the investing guide covers the basics of charges and risk.

How the charges work

Private banking charges are not usually a single headline fee. They tend to be made up of several parts, and the mix depends on what you hold and what you use.

• Account fees, where they apply, are set out in the terms for the specific account.
• Lending carries interest, and the rate depends on the product and your circumstances.
• Investment services carry their own charges, which compound over time. Charges on investment products are calculated on a forward-looking basis and can include transaction costs, gearing costs and performance fees where these are paid⁸.
• Arranged services, such as insurance through a broker, carry the broker's own terms; brokers help personal and business customers manage risk through access to suitable insurance⁹.

The practical point is that the charges document you are given is the one that applies, rather than a single figure quoted anywhere else. Where a regulated broker is involved, you are protected by the Financial Services Compensation Scheme in respect of that advice¹⁰.

Who can bank with Drummonds or Child & Co

Private banking is not a mass market product. These services are designed for customers with substantial assets or borrowing needs, and access is generally by arrangement with the bank rather than by filling in an online form.

If you are not sure whether a private banking service is the right route, it helps to understand what the alternative looks like. Standard current accounts are covered in the current accounts guide, and basic bank accounts, which the largest banks have to offer fee free, are a separate category again. The banks designated to offer basic bank accounts include NatWest Group, which covers the RBS and Ulster brands, alongside Barclays UK, The Co-operative Bank, HSBC UK, Lloyds Banking Group including Halifax and Bank of Scotland brands, Nationwide Building Society, Santander UK, TSB and Virgin Money¹¹.

That designation matters if you are on a low income or have a poor credit history, because a basic bank account lets you pay in wages, salary, benefits and tax credits directly, pay in cheques and cash, pay bills by direct debit, and withdraw money from cash machines¹². It is a different product from a private banking relationship, and it is worth knowing it exists.

Banking day to day: app, online, phone and the London offices

Day to day banking with either brand runs through telephone, online and mobile channels, with a relationship manager as the main point of contact for anything more complex.

Setting up online banking follows the same pattern as other banks. You register through the bank's website, enter your personal details, answer identity verification questions, enter an activation code sent by post or text, and set up a username and a secure password or passcode¹. Once that is done, the app gives you balance checks and payments on a phone or tablet¹.

The regulator sets expectations about what these channels must let you do. Under the rules on availability of services, telephone, internet and mobile banking must support checking the balance, accessing a transaction history, sending money within the UK, setting up a standing order, sending money outside the UK, paying in a cheque and cancelling a cheque⁷.

How to open an account or switch to either bank

Opening an account with a private banking service usually starts with a conversation rather than an application form. Where a form is needed, the process is the same as for any bank account: you fill in an application form in a branch, online, or sometimes over the phone, and provide proof of identity including your full name, date of birth and address¹².

If you are moving an existing account across, the practical steps are the same as any switch:

1. Check what direct debits and standing orders are attached to the old account.
2. Make sure any salary or benefit payments are redirected.
3. Keep both accounts open long enough for payments in transit to clear.

Where you are opening an account because of a change in circumstances, such as a separation, there are support routes. The Child Maintenance Service can give you a letter for your bank explaining why a particular type of account is needed, and can give your bank details to the other parent¹³. That is a specific case, but it illustrates a general point: if a bank asks for evidence of why you need an account, there is usually a route to provide it.

How the two brands sit alongside NatWest and Royal Bank of Scotland

Drummonds and Child & Co sit in the same group as NatWest and Royal Bank of Scotland. For most readers the only consequence that matters is the compensation limit, which is calculated per firm rather than per brand.

The group structure is visible in how the brands are listed in official documents. NatWest Group is designated under the Payment Accounts Regulations to offer basic bank accounts, and that designation covers the RBS and Ulster Bank brands¹¹. The same group appears in the list of designated providers as NatWest Group including RBS and Ulster brands, alongside Barclays UK, The Co-operative Bank, HSBC UK, Lloyds Banking Group including Halifax and Bank of Scotland brands, Nationwide Building Society, Santander, TSB and Virgin Money UK¹⁴.

The group also appears in regulatory coverage documents as National Westminster Bank plc and The Royal Bank of Scotland plc, described as UK wide¹⁵. None of this changes what you can do with your account. It changes how much of your money is protected, which is covered below.

Service standards and how to complain

If something goes wrong, the first step is always to complain to the bank itself and give it a chance to put things right. That is the standard route for any financial firm, and it applies here as much as anywhere.

If you are not satisfied with the response, the Financial Ombudsman Service can look at the complaint. It is free to consumers, and its remit covers banking and payment services including current accounts, savings accounts, direct debits, money transfers, electronic payment platforms, cheques and banker's drafts⁵. The ombudsman decides cases on the relevant law and regulations, the regulator's rules, guidance and standards, and any industry codes of practice, and where appropriate good industry practice¹⁶.

The ombudsman publishes annual complaints data, which is a useful way to see how a firm compares on complaint volumes and outcomes¹⁷. Where a complaint concerns a mortgage, the ombudsman also covers areas such as interest-only mortgages¹⁸. Where it concerns consumer credit, its remit covers payday loans, the affordability of lending, and the quality of goods bought or hired with credit¹⁹.

For complaints about insurance sold alongside a banking relationship, the ombudsman's remit covers travel insurance and similar products²⁰.

FSCS protection: how customers' money is covered

The Financial Services Compensation Scheme is the UK's financial compensation scheme. It protects customers of authorised financial services firms if they fail or have stopped trading²¹. It is funded by a levy on the authorised firms whose customers it protects².

The limits and the rules are not set by the scheme itself. They are set by the UK regulators, the Financial Conduct Authority and the Prudential Regulation Authority³. The scheme follows rules set by those regulators⁴.

The critical point for anyone banking with Drummonds or Child & Co is that the limit applies per person, per authorised firm, not per brand. Where several brands operate under the same firm, balances across those brands are added together. That means money held with Drummonds, Child & Co, NatWest and Royal Bank of Scotland counts towards one limit rather than separate limits for each name.

Protection extends beyond deposits. The scheme protects mortgage advice²², and it covers insurance in certain circumstances, paying 90% on warranty claims and 100% on employers' liability claims²³. Where you have been given regulated advice by a broker, that advice is protected by the scheme¹⁰.

If you think you have been a victim of fraud, the scheme publishes guidance on what to do²⁴. Suspicious calls, emails and texts can be reported to Report Fraud on 0300 123 2040⁶.

Where to get free help

Several free and impartial services exist if you need help with a banking problem or a complaint.

• Financial Ombudsman Service: free to consumers, and can help with complaints about banking and payments⁵. It can also help people with complaints about claims management companies²⁵.
• MoneyHelper: free guidance on money matters, including when to use an insurance broker¹⁰.
• StepChange: support and signposting towards the ombudsman where relevant²⁶.

If you are dealing with a claims management company and are unhappy, you can ask for a copy of their complaints procedure or check their website, contact them with your complaint so they have a chance to put things right, and keep a record of your complaint²⁷. If you remain unhappy, you can complain to the Financial Ombudsman Service about the service you have received, for example the results of your claim or the fees charged²⁷.