Exact date in weeks bank with 27million customers to make huge change to fees
CUSTOMERS should be aware of the exact date a major bank with 27million customers will make a huge change to fees.
In a matter of weeks, Lloyds Bank is increasing the monthly charge on its Club Lloyds package bank account.
Club Lloyds is a current account which provides extra benefits compared to their standard account.
It operates like a current account, allowing direct debits, standing orders, and other standard banking operations.
However, it also offers a range of lifestyle benefits such as a Disney plus subscription, cashback rewards, and access to linked savings accounts with preferential interest rates.
Currently, customers are charged £3 a month but this is waived if you deposit £2,000 or more a month into your account.
But from June 2, the fee will rise to £5 per month.
This could potentially add up to £24 more per year for those who do not meet the £2,000 monthly deposit requirement.
This change will also affect customers with Club Lloyds Silver and Club Lloyds Platinum current accounts, as they are charged the standard Club Lloyds monthly fee in addition to their respective account fees of £11.50 per month for Silver and £22.50 per month for Platinum.
Alongside the price hike, Lloyds will introduce a number of perks.
From April 14, Club Lloyds customers will no longer incur foreign currency or cash withdrawal fees when using their debit card abroad.
This benefit is already available to Silver and Platinum account holders, but from the spring, it will become standard for all Club Lloyds customers.
From the same date, Lloyds Bank will increase the interest-free allowance on Club Lloyds arranged overdrafts.
An overdraft enables you to borrow money through your current account if you run out of cash.
Typically, there’s a fee for going overdrawn, which increases the more you borrow.
However, some banks, including Lloyds, provide interest-free buffers, meaning no interest is charged until your borrowing exceeds a specific threshold.
From April 14, Lloyds will raise this threshold, so you won’t be charged daily interest on the first £100 you borrow – up from the current £50 limit.
A Lloyds spokesperson said: “Our Club Lloyds range offers our customers lifestyle benefits including Disney+, cinema tickets, and magazine subscriptions, and access to market leading mortgage and savings rates.
“From April 14, customers will be able to spend on debit card abroad without any fees. Almost 90% of our customers get these benefits for free each month”.
OTHER BANK CHANGES
Lloyds is not the only bank that is making changes.
Chase currently offers 1% cashback on debit card spending for 12 months to new customers.
And this was also paid on all overseas transactions.
But from April 7, the deal will be slashed, with only select spending categories earning cashback – and everyday purchases will be left out.
Plus, only UK spending will be eligible – not overseas.
Under the new rules, cashback will only apply to groceries, travel, dining out, and select retail stores.
Come May, Nationwide plans to make some changes for its current account and FlexDirect users.
That includes lowering the fee for sending large amounts of money to someone in the UK through CHAPS.
CHAPS stands for Clearing House Automated Payment System and it is used by customers who need to send money between banks in the UK.
Nationwide currently charges customers £20 to send large amounts of money between UK bank accounts but it said from May it will lower this to £15.
Types of savings accounts
THERE are four types of savings accounts fixed, notice, easy access, and regular savers.
Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.
But we’ve rounded up the main types of conventional savings accounts below.
FIXED-RATE
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw, but it comes with a hefty fee.
NOTICE
Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.
These accounts don’t lock your cash away for as long as a typical fixed-term bond account.
You’ll need to give advance notice to your bank – up to 180 days in some cases – before you can make a withdrawal or you’ll lose the interest.
EASY-ACCESS
An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.
These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.
REGULAR SAVER
These accounts pay some of the best returns as long as you pay in a set amount each month.
You’ll usually need to hold a current account with providers to access the best rates.
However, if you have a lot of money to save, these accounts often come with monthly deposit limits.