Lloyd’s Bank is making huge change to fees in WEEKS impacting millions of customers – check if you’re affected

LLOYDS Bank is making a huge change to fees in just weeks.

Millions of customers can expect to face higher costs as the major bank increases the price of its Club Lloyds package account.

Club Lloyds is a current account which provides additional benefits compared to their standard account – such as monetary rewards.

Much like a regular current account, it allows direct debits, standing orders, and other standard banking operations.

However, customers can also get their hands on lifestyle benefits, 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.

But in just weeks, this is all set to change.

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.

They will pay 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 adding some much-welcomed benefits to its club memberships.

From April 14, Club Lloyds customers will no longer be lumped with 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.

This comes as the Co-operative Bank announced it would be increasing the monthly charge on its Everyday Extra package bank account in July.

Everday Extra is a current account which provides additional benefits compared to Co-op‘s standard bank accounts.

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, including mobile phone insurance, worldwide travel insurance and UK and European breakdown cover.

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.

A spokesperson for the bank said: “The subscription fee on our Everyday Extra product has remained constant since its launch in 2017.

“But due to the costs levied by our suppliers increasing during this time, we’ve had to make the decision to increase the fees that our customers will pay from July 1, 2025.”

This follows Nationwide’s announcement that it will be cutting interest rates on over 60 savings accounts from June 1.

The move comes after the Bank of England slashed the base rate from 4.75% to 4.5% in February.

The base rate affects the interest rates banks offer to customers on a range of products including savings accounts and mortgages.

A lower base rate signals good news for mortgage holders but has a negative knock-on effect on savers who usually see their rates drop.

Nationwide is cutting rates on 63 of its savings accounts on June 1, from ISAs to easy access savings accounts.