Major bank hikes fees on current accounts – are you affected?
A MAJOR bank has hiked fees on its current accounts in a move that affects thousands of customers.
The monthly cost for both the Lloyds Silver and Platinum Club accounts increased yesterday (July 1).
Customers will now be expected to pay an extra £18 per year for the accounts.
These are the changes Lloyds has confirmed:
- Club Lloyds Silver has increased from £10 a month (plus a £3 Club fee unless you deposit £2,000 each month) to £11.50 a month
- Club Lloyds Platinum has increased from £21 a month (plus a £3 Club fee unless you deposit £2,000 each month) to £22.50 a a month
You do get a range of other benefits including travel insurance, AA breakdown cover and mobile phone insurance, but you should weigh up carefully whether the benefits are worth the costs.
Lloyds accounts with no fees have not been affected by the change.
A Lloyds Bank spokesperson previously told The Sun: “Our Silver and Platinum accounts continue to offer a wide range of valuable benefits, including travel insurance, AA Breakdown cover, mobile phone insurance and, from July this year, fee-free debit card spending abroad.”
The hikes may seem small but it does mean that both the Silver and Platinum accounts will now cost an additional £18 a year.
This doesn’t include the £3 monthly fee, which is only waived if you deposit £2,000 or more into the account.
The change to current account fees isn’t the only change Lloyds customers are set to experience.
The bank is also making changes to its overdraft fees from August
The new rules will affect customers who bank with Lloyds Bank, Halifax or Bank of Scotland.
Lloyds is also making changes to the charges you pay when you use your debit card overseas.
Silver and Platinum account holders will be able to use their cards without any international charges, including for withdrawing money from cash machines.
What other bank account changes are coming?
NatWest increased the fees on some of its packaged bank accounts on Friday (June 28).
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
Customers will now have to pay an extra £60 a year on its Reward Black account after the fee rose from £31 to £36 per month.
Meanwhile, the fee on the Reward Platinum account has risen from £20 to £22 per month – an extra £24 over the course of a year.
There will be no changes to any other NatWest accounts.
First Direct is axing its text message banking service in a few months’ time.
This means thousands of customers will no longer be able to receive text notifications about their current account balance.
They will also stop receiving “mini-statements” via SMS, which include your balance and the five most recent transactions.
The service will cease for good on Saturday, August 10.
Barclays is changing the way that it calculates the monthly minimum repayments for credit card customers this month.
The bank is changing from a tiered structure, where customers pay between 2.25% and 4.25% of their overall balance, to one that calculates repayments based on each individual customer’s circumstances.
From July 22, customers will pay the highest of the following each month:
- 1% of their main credit card balance
- 1% of the main balance plus any interest, default fees or account fees
- The customer’s total outstanding balance, if this is less than £5.
The bank said that 80% of customers will be better off under the new rules.
What can I do about the account charge increases?
Customers can downgrade their account to an account with a lower monthly fee or to a non-fee account.
You can do this on the NatWest app, on the website or by heading into their local branch.
Customers unhappy with the change can also close or switch their account to another bank.
There are some switching offers available at the moment which which means you could make this move and get some extra cash.
The Sun had rounded up all the banks offering cash and freebies if you switch current accounts – and what catches to look out for.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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