A MAJOR bank with over 27million customers is making a huge change to fees in months.
Lloyds Bank is increasing the monthly charge on its Club Lloyds package bank account in June.
Lloyds has kept its Club Lloyds fee unchanged for over eight years[/caption]
Club Lloyds is a current account which provides additional benefits compared to their standard account.
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, cashback rewards, and access to linked savings accounts with preferential interest rates.
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.
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.
Despite the changes, Lloyds Bank is also introducing some additional benefits to these packaged bank accounts.
From April 14, Club Lloyds customers will no longer incur 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.
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.
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.
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
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 natwest.com/current-accounts/packaged-bank-accounts.html#compare-packaged-accounts.
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 uk.virginmoney.com/current-accounts/pca.
Co-op Bank
Co-op Bank’s Everyday Extra packaged bank account costs £15 a month or £180 a year.
This product offers worldwide family travel insurance for those up to the age of 79.
It also includes mobile phone and UK and European breakdown cover for the account holder.
Customers do not need to make a minimum monthly payment to qualify for the account.
To find out more, visit co-operativebank.co.uk/products/bank-accounts/packaged-bank-account.
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 halifax.co.uk/bankaccounts/current-accounts/ultimate-reward-current-account.
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.
