Which British bank introduced the first permanent overdraft facility in 1728?

The Royal Bank of Scotland introduced the first permanent overdraft facility in 1728.

The bank was founded in Edinburgh in 1727 by royal charter, during a period when Scotland’s banking system was expanding rapidly. In its early years, it developed products that made borrowing more flexible for customers and businesses. The permanent overdraft allowed an account holder to draw beyond the account’s available balance under an agreed arrangement, rather than taking a separate short-term loan each time.

An overdraft is not the same as a conventional loan. It is linked directly to a current account, and interest is generally charged on the amount used. Modern overdrafts can have terms and fees that differ significantly from historical arrangements.

The Royal Bank of Scotland later became one of the major banks in the United Kingdom. Its historical name is often shortened to RBS, although the wider group has operated under several brands and corporate structures.