Latest news with #bankfees
Globe and Mail
4 days ago
- Business
- Globe and Mail
A big bank's $75 fee hike tells a story of the financial industry's arrogance
The going rate to transfer investment accounts from one bank or broker to another is roughly $150. Toronto-Dominion Bank TD-T has long been under this threshold, but not for much longer. Starting July 1, the fee for TD Canada Trust clients who move a tax-free savings account, a registered retirement savings plan or a first home savings account to another financial company will rise from $75 to $150. Account transfer fees are a mostly hidden but potent example of financial industry arrogance. After failing to earn your continuing loyalty, these companies charge you to make your escape. Open banking rules that will boost competition cannot come soon enough. TD took a business-as-usual approach when asked for details on the fee hike. 'We regularly evaluate our product offering to align with customer's needs,' the bank said in an e-mail response to questions. 'The change to the registered plan transfer fees was made based on various factors, including the costs involved in processing and moving assets to another institution, market conditions, and to align with the value we provide our customers.' TD's fee hike was highlighted in a recent LinkedIn post by Paul Teshima, Wealthsimple's chief commercial officer. Wealthsimple has built the most credible diversified banking, borrowing and investing alternative to the big banks and, guess what, it doesn't have account transfer fees. Wealthsimple has its own customer-service vulnerabilities. The interest rate on its chequing account has dropped to the lower tier among alternative banks in recent months, and its foreign exchange fees looked comparatively pricey in the latest Globe and Mail digital brokerage ranking. Lower forex costs are available if you subscribe to a $10-per-month U.S.-dollar account package. Still, Wealthsimple has a point in drawing attention to TD and other banks that charge clients to take their accounts elsewhere. In total, millions of dollars are charged to a segment of the investing public that can least afford them. Bank branches are a natural destination for people who want help investing amounts too small to interest an investment adviser. A $150 fee on a $15,000 account is a one-per-cent hit, which is significant when you consider that a return of five to six per cent is what you should expect over the long term from a diversified portfolio. That one-per-cent fee comes in addition to money already made on that $15,000 account if invested in mutual funds. Bank mutual funds have fees – measured through the management expense ratio shown in disclosure documents and fund profiles – that are typically in the 1.5-to-two-per-cent range in the balanced and equity categories. Whether you make or lose money in mutual funds, your fees are scooped off the top. Those published returns you see for funds of all types are shown on a net basis, which means fund companies have taken their cut. The money you invest in bank products enriches banks even if you hold guaranteed investment certificates. Money taken in through GIC investments is lent out at a higher rate through mortgages. All banks and brokers have long lists of account fees they charge, some reasonable and some a cash grab made acceptable by the fact that everyone in the industry does it. More competition in banking and investing would help. New investing apps from international players such as Moomoo and Webull have entered the Canadian market recently. On the banking side, the wait continues for a rulebook that will allow bank clients to securely share financial data with upstart alternative financial companies. This form of data-sharing is called open banking and it's seen as a way to kickstart competition, leading to lower fees and more personalized apps and services. Open banking seems a natural part of the federal government's efforts to improve economic productivity. Less money paid to transfer investment accounts means more money left to be invested and spent later on. As for TD, the coming increase in transfer costs is part of a series of fee changes that will increase the monthly cost of some account packages by $1. A rare exception to the higher fee trend: The cost of cancelling an e-transfer send money payment falls from $5 to zero. More of that, please. Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.
The Sun
5 days ago
- Business
- The Sun
Lloyds Bank is making huge change to fees impacting millions of customers – one week warning for those affected
LLOYDS Bank is making a huge change to fees impacting millions of customers in just one week. The high street lender plans to hike fees for customers who are signed up for its Club Lloyd's package. 1 Club Lloyds is a type of current account that provides extra benefits compared to their standard account. It runs like a typical 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. Club membership currently has a monthly fee of £3, but this is waived £2,000 or more is deposited into the account each month. However, this is set to change next week. Come June 2, this fee will be hiked to £5 for users of the service. That means customers could end up paying an extra £24 a year if they do not meet the £2,000 threshold. This change will also affect customers with Club Lloyds Silver and Club Lloyds Platinum current accounts. That's because users 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. But it is not all bad news for members. Back in April, the bank said Club Lloyd customers would no longer pay foreign currency or cash withdrawal fees when using their debit cards abroad. Lloyds Bank also increased the interest-free allowance on Club Lloyds arranged overdrafts. These services were already available for Club Lloyds Silver and Club Lloyds Platinum current accounts. An overdraft enables you to borrow money through your current account if you run out of cash. 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 OTHER BANK CHANGES This comes as the Co-operative Bank announced it would be increasing the monthly charge on its Everyday Extra package bank account in July. 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. Elsewhere, Skipton Building Society said that from June 9 a total of 92 types of savings accounts will have its interest lowered. The moves comes after rate-setters on the BoE's Monetary Policy Committee cut the base rate from 4.5% to 4.25%. said it will lower the interest on 58 of its saving accounts. That includes its Five Access Saver which will have its interest rates lowered from 3.77% AER to 3.55% come June 27.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Some UAE banks to raise minimum balance requirement from June 1, report says
Several banks operating in the UAE are set to increase the minimum balance requirement to Dh5,000, up from the previous Dh3,000 threshold established under the Central Bank's personal loan regulations. The new requirement will take effect from June 1, with one bank having already implemented these charges recently. Customers who fail to maintain the minimum balance will face a fee of Dh25, according to the new guidelines. These banks have stipulated that customers must hold a credit card or personal financing to be exempted from the minimum balance fee of Dh25. A document obtained by Emarat Al Youm details that 'fees will be waived for customers maintaining a total balance of Dh20,000 or more, those with a monthly salary transfer of Dh15,000 or more, or customers with a monthly salary transfer between Dh5,000 and Dh14,999 who also have a credit card, overdraft facility, or loan.' The document further states that 'a fee of Dh25 will be imposed on customers with a monthly salary transfer between Dh5,000 and Dh14,999 without a credit card, overdraft facility, or loan, as well as those with salary transfers less than Dh5,000.' Additionally, 'all bank customers who do not fall under the above categories will be required to pay a fee of Dh100 or Dh105, depending on the account type.' It is worth noting that the personal loan regulations issued by the Central Bank, in effect since 2011, require a minimum balance of Dh3,000 to be exempt from a fee of only Dh25.
The Sun
08-05-2025
- Business
- The Sun
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.
The Sun
07-05-2025
- Business
- The Sun
High street bank used by 2.6million customers to hike big account fee within weeks
A HIGH street bank, trusted by millions of loyal customers, is set to hike fees on a popular account in a matter of weeks. The Co-operative Bank is increasing the monthly charge on its Everyday Extra package bank account in July. 1 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." The Co-operative Bank is not the only firm increasing fees for packaged accounts this year. Lloyds Bank is increasing the monthly charge on its Club Lloyds package bank account in June. At the moment there's a monthly fee of £3, but this is waived if you deposit £2,000 or more into the account each month. Easy Income Boosters Money Making Tips You Need to Know However, 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, 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. What does Co-op's Everyday Extra account offer? Mobile phone insurance, worldwide travel insurance, and UK and European breakdown cover An overdraft available to apply for as part of your account application, or once your account is opened Easy management of your money either online or in our mobile app Availability as a sole account or a joint account. What other packed bank account options are there? If you use package bank accounts correctly, they can save you £100s off the cost of breakdown, travel, mobile and gadget insurance. When weighing up the value of these accounts it's important to review the levels of cover offered and consider whether you will use all of the benefits included. If not, then these may not be the best option for you. Here are some examples of the best package bank accounts currently available. Nationwide Nationwide 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 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. To find out more, visit Club Lloyds 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 Virgin Money Virgin Money's M Club 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. To find out more, visit Halifax 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. Customers can also receive additional rewards if they pay in at least £1,500 a month into the account. You can choose from £5 a month cash, a Vue cinema ticket, or three digital magazines. To find out more, visit 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.
