A MAJOR high street bank with 27million customers will make a huge change to fees.
Bank has announced a shake-up to its Club Lloyds package bank account.
This is atype of current accountthat provides extra compared to their standard account.
It runs like a typical current account allowing direct debits, standing orders, and other standard banking operations.
However, it also offers a range of lifestyle benefits such as aplus subscription, cashback rewards, and access to linked savings accounts with preferential interest rates.
Customers are also charged a £3 monthly fee, but this is waived if you deposit £2,000 or more into the account.
By June 2, this 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, 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.
But Lloyds is also rolling out several perks for Club customers.
From today, April 14, Club Lloyds customers will no longer pay foreign currency or cash withdrawal fees when using their debit card abroad.
Lloyds Bank will increase the interest-free allowance on Club Lloyds arranged overdrafts from today.
These services are already available for Club Lloyds Silver and Club Lloyds Platinum current accounts.
An overdraft enables you to borrow through your current account if you run out of cash.
Typically, there's a fee for going overdrawn, which increases the more you .
However, some banks, including Lloyds, provide interest-free buffers, meaning no interest is charged until your borrowing exceeds a certain threshold.
From today, Lloyds will also raise this threshold, so you won’t be charged daily interest on the first £100 you borrow – up from the current £50 limit.
OTHER BANK CHANGES
Come May, plans to make some changes for its current account and FlexDirect users.
That includes lowering the fee for sending large amounts of money to someone in the UK through CHAPS.
CHAPS stands for Clearing House Automated Payment System and it is used by customers who need to send money between banks in the UK.
Nationwide currently charges customers £20 to send large amounts of money between UK bank accounts but it said from May it will lower this to £15.
