You currently pay £3 a month for a Club Lloyds account, but this is rising to £5 a month from June 2 – although there is a way to avoid this fee
Lloyds Bank is increasing the monthly fee on its Club Lloyds package bank account next month. Club Lloyds is a current account where you pay a monthly fee in exchange for additional perks.
For example, you can choose between a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off certain food and drink brands.
You also get access to the Club Lloyds Monthly Saver which pays 6.25% gross/AER on up to £400 a month, and up to 15% cashback at selected retailers.
You currently pay £3 a month for a Club Lloyds account – but this is rising to £5 a month from June 2. The monthly fee is still waived if you pay in £2,000 or more each month.
This monthly fee also applies to Club Lloyds Silver and Club Lloyds Platinum accounts, although these also come with additional fees. You pay an additional £11.50 a month for Silver account, and £22.50 a month for Platinum.
But in some good news, Lloyds removed debit card foreign currency fees from April 14. This applies when you pay in the local currency – if you choose to pay in pound sterling, you may still be charged.
Lloyds explains on its website: “If you pay for something in pounds sterling, the provider of the currency conversion may still charge you. Some cash machine providers may also charge a fee.”
The interest-free allowance on Club Lloyds arranged overdrafts has also increased from £50 to £100. 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.”
It comes after Lloyds, Halifax and Bank of Scotland customers were hit with new overdraft charges from last month. The banking group previously had three overdraft rates, with the cheapest being 27.5% and this was available to some Club Lloyd members.
The other rates that were available were 39.9% – this was the standard rate that the majority of customers were on – and 49.9%. Under the new system, the 39.9% remains in place and continues to be the rate most customers are on, and there is also still be a higher rate of 49.9%.
But the banking group has also introduced new rates of 19.9% and 29.9%. It means someone who was on the cheapest rate of 27.5% as a Club Lloyds member, could have now been moved to the highest rate of 49.9% – but some customers have also seen their rate go down to the 19.9% rate.