Lloyds and Halifax changing bank accounts - and you could lose out on free cash
Lloyds student current account pays 2% interest, while Halifax student bank account pays 0.5% interest - but these rates are being axed from June 2
Lloyds and Halifax will no longer pay interest on student bank accounts from next month. Lloyds student current account pays 2% interest on balances between £1 and £5,000, while Halifax student bank account pays 0.5% interest on all balances above 1p.
But from June 2, the banking group will remove these rates - meaning students will no longer earn interest on money held in these accounts.
A Lloyds Banking Group spokesperson said: "Our student account comes with benefits such as a fee free overdraft as well as Everyday Offers, providing cashback when shopping at select retailers.
"We're also making changes, including some exciting new benefits, when we launch our 2025 Student Account in the coming months."
Lloyds is also hiking the monthly fee on its Club Lloyds package bank account from June 2. Club Lloyds is a current account where you pay a monthly fee in exchange for additional perks.
For example, you can choose between a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off certain food and drink brands.
You also get access to the Club Lloyds Monthly Saver which pays 6.25% gross/AER on up to £400 a month, and up to 15% cashback at selected retailers.
You currently pay £3 a month for a Club Lloyds account - but this is rising to £5 a month from June 2. The monthly fee is still waived if you pay in £2,000 or more each month.
This monthly fee also applies to Club Lloyds Silver and Club Lloyds Platinum accounts, although these also come with additional fees. You pay an additional £11.50 a month for Silver account, and £22.50 a month for Platinum.
But in some good news, Lloyds has announced that all Club Lloyds customers will be able to use their debit card to make purchases or withdraw cash anywhere in the world free of charge.
This applies when you pay in the local currency - if you choose to pay in pound sterling, you may still be charged. Club Lloyds is a type of packaged bank account that gives you additional perks in exchange for a monthly fee.
For example, you can choose between a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off certain food and drink brands.
You also get access to exclusive savings accounts, including the Club Lloyds Monthly Saver which pays 6.25% gross/AER on up to £400 a month, and up to 15% cashback at selected retailers.
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