A major bank will axe a key bank account perk for thousands of customers in a matter of days.
Halifax, part of Lloyds Banking Group, is getting rid of “Extras” for Rewards current account holders.
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The bank currently charges a £3 monthly fee to run this bank account and customers are given freebies in return for hitting certain targets.
For example, customers can get £5 paid into their bank account or a free cinema ticket if they either spend £500 on their debit card each month or hold a balance of over £5,000.
Halfiax has plans to close down this service come September, meaning customers who meet these targets will no longer get a reward.
To prepare for this, Halifax has told customers that from June 17 they will no longer be able to add Reward Extras to their account or renew an existing Reward Extras offer.
But it is not all bad news as the bank is axing the service to make way for a number of new features.
Currently, Halifax charges a £3 monthly fee to run this bank account and customers are given freebies in return for hitting certain targets.
For example, customers can get £5 paid into their bank account or a free cinema ticket if they either spend £500 on their debit card each month or hold a balance of over £5,000.
But the bank has plans to close down this service come September, meaning customers who meet these targets will no longer get a reward.
This includes fee-free debit card spending abroad and a £100 interest free arranged overdraft to existing and new eligible Reward account customers.
Rewards customers are currently charged a 2.99% fee for using their debit card abroad.
That means customers are currently charged an extra £2.99 for using their debit card to pay £100 abroad.
This change will come into effect on August 1.
Customers who meet the requirements will also be allowed to enter into a £100 overdraft and not face any interest.
OTHER BANK CHANGES
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, Lloyds recently hiked the cost of its Club Lloyds account from £3 to £5.
The packaged account provides extra benefits including a Disney plus subscription, cashback rewards, and access to linked savings accounts with preferential interest rates.
Skipton Building Society also recently lowered the interest on a total of 92 types of 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.
