Lloyd's Bank is making huge change to fees in WEEKS impacting millions of customers – check if you're affected
LLOYDS Bank is making a huge change to fees in just weeks.
Millions of customers can expect to face higher costs as the major bank increases the price of its Club Lloyds package account.
1
Club Lloyds is a current account which provides additional benefits compared to their standard account - such as monetary rewards.
Much like a regular current account, it allows direct debits, standing orders, and other standard banking operations.
However, customers can also get their hands on lifestyle benefits, cashback rewards, and access to linked savings accounts with preferential interest rates.
Club membership currently has a monthly fee of £3, but this is waived £2,000 or more is deposited into the account each month.
But in just weeks, this is all set to change.
From June 2, this fee will rise to £5 per month, potentially adding 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.
They will pay 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.
Despite the changes, Lloyds Bank is adding some much-welcomed benefits to its club memberships.
From April 14, Club Lloyds customers will no longer be lumped with 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.
NatWest to close 53 bank branches in fresh blow to UK high street – see if your local is affected
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.
What do Club Lloyds accounts offer?
Club Lloyds (£3 a month)
Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets
Exclusive savings and mortgage rates
Earn interest on current account balance
Get up to 15% cashback on debit card purchases in selected retailers
Club Lloyds Silver (£11.50 a month + £3)
Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets
Exclusive savings and mortgage rates
Earn interest on current account balance
Get up to 15% cashback on debit card purchases in selected retailers
European and UK family travel insurance
AA breakdown cover
Mobile phone insurance
Fee-free spending and cash withdrawals abroad
Club Lloyds Platinum (£22.50 a month + £3)
Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets
Exclusive savings and mortgage rates
Earn interest on current account balance
Get up to 15% cashback on debit card purchases in selected retailers
Worldwide family travel insurance
AA breakdown cover
Mobile phone insurance
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"
Lloyds has kept its Club Lloyds fee unchanged for over eight years.
However, in July last year, the bank increased the monthly charges for its Silver and Platinum Club accounts by £1.50 a month.
This took the monthly Silver fee from £10 to £11.50 and the Platinum fee from £21 to £22.50.
This comes as the Co-operative Bank announced it would be increasing the monthly charge on its Everyday Extra package bank account in July.
Everday Extra is a current account which provides additional benefits compared to Co-op 's standard bank accounts.
It functions like a regular current account, allowing direct debits, standing orders, and other standard banking operations.
However, it also offers a range of lifestyle benefits, including mobile phone insurance, worldwide travel insurance and UK and European breakdown cover.
Currently, customers pay a monthly fee of £15, totalling £180 a year.
But starting from July 1, this fee will increase to £18 a month—an extra £36 annually.
A spokesperson for the bank said: "The subscription fee on our Everyday Extra product has remained constant since its launch in 2017.
"But due to the costs levied by our suppliers increasing during this time, we've had to make the decision to increase the fees that our customers will pay from July 1, 2025."
This follows Nationwide's announcement that it will be cutting interest rates on over 60 savings accounts from June 1.
The move comes after the Bank of England.
The base rate affects the interest rates banks offer to customers on a range of products including savings accounts and mortgages.
A lower base rate signals good news for mortgage holders but has a negative knock-on effect on savers who usually see their rates drop.
Nationwide is cutting rates on 63 of its savings accounts on June 1, from ISAs to easy access savings accounts.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
10 minutes ago
- The Independent
Demand for oral nicotine pouches growing fast, British American Tobacco says
Rising global demand for oral nicotine pouches are helping boost sales for cigarette maker British American Tobacco (BAT), which has nudged up its full-year forecast. The Velo brand is growing the fastest within its so-called 'new category', which includes non-tobacco products like vapes, the business said. The pouches come in a variety of flavours and strengths and are designed to be placed between the gum and lip so nicotine can be absorbed through the mouth. Tadeu Marroco, BAT's chief executive, said he was 'excited' by the launch of loyalty scheme Velo Plus in the US. 'Globally, Velo continues to gain volume share in this fast-growing category, driven by the US and our continued leadership position in AME (Americas & Europe),' he said, highlighting a strong performance in the UK, Scandinavia and Poland. BAT said it was expecting full-year revenues to grow between 1% and 2% following a stronger-than-expected half-year performance. It had previously forecast growth of 1%. The company continues to make the bulk of its sales from traditional cigarettes, which include the Pall Mall and Camel brands. It said the segment remained 'under pressure' with the volume of sales about 9% lower across the industry over the year to date, but that it was gaining market share for brands including Lucky Strike. Mr Marroco said BAT's vape sales were being affected by 'illicit' products in the US and Canada, which were driving down sales of legal devices. BAT has previously warned that customers turning to illegal disposable vapes was hurting sales of its own vape product, Vuse, and urged a government crackdown on the market.
The Guardian
11 minutes ago
- The Guardian
UK water industry needs ‘fundamental reset', review finds
The 'deep-rooted, systemic' problems in the UK water industry are the fault of companies, the government and industry regulators, according to a much-anticipated review, which was immediately criticised for failing to recommend bold action by sewage pollution campaigners. An interim review into the water industry written by Sir Jon Cunliffe, a former deputy governor of the Bank of England, and commission by the government found there was 'no simple, single change, no matter how radical, that will deliver the fundamental reset that is needed for the water sector'. Cunliffe, the chair of the Independent Water Commission, said public trust in the water industry had been shaken by 'pollution, financial difficulties, mismanagement [and] infrastructure failures'. Campaigners expressed disappointment that the report failed to recommend clear actions to end the crisis, which was underlined on Tuesday when Thames Water, Britain's biggest water company, said the US private equity group KKR had pulled out of a deal to inject fresh equity, leaving its future in doubt. James Wallace, the chief executive of River Action, said: 'This interim report signals some progress on regulation, but it reads more like a sales pitch to international investors and overpaid CEOs than the urgent restructuring of corrupted water companies. 'We ask the commission to learn from other countries how to ensure water companies are owned, financed and operated for public benefit.' Cunliffe was prevented by the government from considering public ownership of water in his remit. He said there was a need to change the industry and its regulatory framework in order to attract investors prepared to take on a low risk, low return stake, that was stable over time. He said: 'We have heard of deep-rooted, systemic and interlocking failures over the years – failure in government's strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest. 'My view is that all of these issues need to be tackled to rebuild public trust and make the system fit for the future.' The economic regulator Ofwat, and the environmental regulator, the Environment Agency, had lost public trust, and their work overlapped, created tensions and left gaps in regulation, he said. Cunliffe is considering a recommendation that the regulators should be streamlined, which could result in merging them. He is also considering a requirement for economic regulation to become more supervisory, in order to intervene before problems happened. But Tim Farron MP, the Liberal Democrat environment spokesperson, said the commission needed to go further and recommend that Ofwat be scrapped. 'At the heart of the sewage scandal is a regulatory system which has failed,' he said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'It's going to take more than a hose down to clean up the water industry. It's time for Ofwat to go and the commission must now make this plain.' Cunliffe's review was set up by the government amid growing public concern about record sewage spills and rising bills. He said he was considering a requirement for the economic regulator to be given powers to ensure owners of water companies did not act against the public interest. This would include tools to take over the direction of companies and intervene in changes of ownership when needed. But Giles Bristow, the chief executive of Surfers Against Sewage, said the report was a tinkering around the edges, which the public would not stand for. 'The criminal behaviour, chronic lack of investment and woeful mismanagement which has led to sewage filled seas is a direct result of our profit driven system. This interim report begins to recognise this, but as yet does not spell out the need to end pollution for profit,' he said. 'The commission's final recommendations must reshape the water industry to put public health and the environment first.' Richard Benwell, the chief executive of Wildlife and Countryside Link, said the government needed to start work now on vital reforms to cut pollution. 'The findings of failings suggest a clear direction of travel. Politicians must stop equivocating and set clear strategic direction for environmental recovery. Strong, enforceable targets are needed for water quality that can be applied across sectors,' he added.
The Independent
13 minutes ago
- The Independent
US private equity firm KKR drops bid to buy troubled British utility Thames Water
British water and sewage utility Thames Water said Tuesday that a U.S. investment firm has dropped a rescue bid for the debt-burdened company. Thames Water said private equity company KKR decided not to make a bid and its status as preferred bidder had lapsed. The utility said it is talking to 'senior creditors' about an alternative money-raising plan. 'Whilst today's news is disappointing, we continue to believe that a sustainable recapitalization of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal,' Thames Water chairman Arian Montague said. The cash-strapped company, which provides water and sewage services to 16 million people in and around London, has teetered on the edge of insolvency under about 19 billion pounds ($26 billion) in debt. The utility received court approval in March for 3 billion pounds in emergency funding to keep it from falling into government administration. KKR's withdrawal makes it more likely the British government will have to nationalize the company, at least temporarily. Environment Secretary Steve Reed said the government was 'monitoring the situation,' but 'Thames (Water) itself remains stable.' Thames Water is the focus of nationwide anger over sewage spills that have fouled lakes, rivers and beaches at a time when water and sewage companies are hiking bills to modernize aging systems and cope with the demands of climate change and population growth. Last week the company was fined almost 123 million pounds ($166 million) for releasing sewage into rivers and streams while paying dividends to its shareholders. Consumers and politicians have criticized the company, arguing Thames Water created its own problems by paying overly generous dividends to investors and high salaries to executives while failing to invest in pipelines, pumps and reservoirs. Company executives say the fault lies with regulators, which kept bills too low for too long, starving the company of vital cash to fund improvements.
