Lloyds Bank to axe bank account key perk for thousands of customers – check if you'll have to pay more

The Sun

3 days ago

LLOYDS is scrapping a popular bank account benefit, leaving thousands of customers facing higher costs.
The high street bank will axe a £5 a month discount offered to thousands of Club Lloyds Platinum customers.
1
The Club Lloyds Platinum account is a premium bank account offering benefits like travel insurance, mobile phone insurance, breakdown cover, and access to lifestyle perks and savings accounts.
It costs £22.50 a month, plus a £5 Club Lloyds fee, which is refunded if you pay more than £2,000 into the account each month.
However, thousands of account holders also get a £5 monthly discount on the £22.50 fee.
To qualify, you must either deposit £4,300 or more into the account each month (£5,500 for joint accounts) or keep savings of £75,000 or more in eligible accounts during the month.
This discount helps reduce the cost for those who meet the conditions, saving over £60 a year if eligible for the discount throughout the year.
However, Lloyds has confirmed that this discount will be phased out, with customers receiving their final £5 refund on August 4 – provided they meet the eligibility criteria in July 2025.
After that, all account holders will need to pay the full £22.50 monthly fee, which costs £270 a year.
A spokesperson for Lloyds Bank said: "Our packaged bank accounts continue to offer great value for money, as they come with a host of perks including fee free spending worldwide, insurance, lifestyle benefits, cashback and much more.
"We've also recently launched our Lloyds Premier account, which brings together the best in financial perks and premium lifestyle services we have to offer.
"Customers will have the £15 a month fee refunded when they pay in £5,000 each month, or have £100,000 of savings or qualifying investments with Lloyds."
Switch bank accounts for free perks
When considering the value of packaged bank accounts, it's important to review the level of cover provided.
Think about whether you will actually use all the benefits included.
If you won't, your current provider might not be the best choice for you.
Fortunately, there are other packaged bank accounts available that cost less than the Club Lloyds Platinum account. This includes two cheaper options offered by Lloyds Bank itself.
Club Lloyds Accounts
Club Lloyds (£5 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 + £5)
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 + £5)
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
Alternatively, Nationwide 's FlexPlus packaged bank account costs £18 a month and offers a host of additional services and perks.
These benefits include worldwide travel insurance, mobile phone insurance, breakdown cover, and preferential rates on loans and overdrafts.
The account does not require a minimum pay-in, and customers get worldwide travel insurance for family trips of up to 31 days.
Mobile phone insurance is also provided for all members in the same household, and it covers for loss, theft, damage and faults.
Additionally, account holders can use their debit card abroad without incurring non-sterling transaction fees.
FlexPlus customers also get vehicle breakdown cover in the UK and the rest of Europe even if somebody else is driving.
NatWest's Reward Silver account costs £10 a month and offers European travel insurance for trips of up to 22 days.
Customers also get free mobile phone insurance and can use their debit card abroad without incurring extra charges.
Those looking for worldwide travel insurance can apply for a Reward Platinum account which costs £22 a month.
This account also includes UK breakdown cover.
Virgin Money's Club M packaged bank account is one of the cheapest on the market, costing £12.50 a month or £150 a year.
It comes with free gadget insurance, worldwide family travel insurance and UK and European breakdown cover.
The gadget cover protects both mobile phones and other tech, such as tablets and laptops.
Customers do not need to make a minimum monthly payment to qualify for the account.
According to the bank, equivalent policies would cost upwards of £500 a year, so customers save £350 with this account's perks.
Meanwhile, Halifax's Ultimate Reward package bank account costs £19 a month or £228 a year.
Customers do not need to make a minimum monthly payment to qualify for the account.
The product comes with free gadget insurance, worldwide family travel insurance, UK breakdown cover and home emergency cover.
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.
What else is happening at Lloyds Bank?
Customers of Lloyds Bank, Halifax and Bank of Scotland will soon lose the ability to deposit their cheques at any of the 11,500 Post Office branches nationwide.
From December 31 this year, Lloyds Banking Group will withdraw this service for all customers.
In June, millions of Lloyds, Halifax and Bank of Scotland customers saw their overdraft costs fall.
Existing customers currently paying 39.9% or 49.9% on their overdrafts have had their rates reduced to 29.9%.
If your interest rate dropped from 49.9% to 29.9%, the cost of borrowing £1,000 over 12 months would fall by £299.
Meanwhile, if your interest rate falls from 39.9% to 29.9%, the cost of borrowing the same amount over 12 months would fall by £100.
Meanwhile, the high street bank stopped paying interest on money held in their student bank accounts on June 2.
Lloyds Bank also hiked the the monthly Club Lloyds charge in June.
On June 2, the £3 monthly fee rose to £5 per month, adding up to £24 more per year for those who do not meet the £2,000 monthly deposit requirement.
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.