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.
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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%.
Leeds Building Society 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.
