Customers of Lloyds TSB, NatWest and its parent, Royal Bank of Scotland, who have a "basic" current account can only use cash machines belonging to their own bank. Most current account holders can use any machine in the Link network.

Basic bank accounts are aimed at people, often on low incomes, who would have difficulty being accepted for a conventional current account. Customers with these accounts are not allowed to go overdrawn. Restricting these customers to cash machines operated by their own bank will cut the number of free ATMs that they can use by up to 80pc, experts predicted. RBS blamed the cost of allowing customers to use other banks' cash machines for its decision, which came into effect last month for new customers. The move will heighten fears that free banking could disappear from Britain's high streets.

RBS and NatWest's existing basic account customers will lose access to other banks' cash machines "over the next few months", a spokesman said. She added that the bank would be writing to those

Read more on this story: Lloyds and RBS customers barred from using rivals' ATMs - Telegraph