Lloyds Bank, one of the UK’s largest financial institutions, has announced a monthly fee increase for its Club Lloyds accounts starting from June 2, 2024. This change could cost some customers an extra £24 per year if they don’t meet specific deposit requirements. Here’s a complete breakdown of the upcoming changes, who it affects, and how you can avoid the fee.
Key Change: Higher Monthly Fee
Currently, Club Lloyds account holders pay a £3 monthly fee unless they deposit at least £2,000 each month. From June 2, the fee will increase to £5 per month.
What This Means:
- Current Fee: £3/month (£36 per year)
- New Fee: £5/month (£60 per year)
- Annual Increase: £24
Who Pays the Fee?
Customers who don’t deposit £2,000 or more each month will pay this increased fee.
Accounts Affected by the Fee Increase
The fee increase applies to several Club Lloyds accounts:
1. Club Lloyds Account
- New Fee: £5/month (waived if you deposit £2,000+ monthly)
- Benefits:
- Choice of Lifestyle Reward – Disney+ (12 months) or 6 cinema tickets
- Exclusive savings & mortgage rates
- Interest on your current account balance
- Up to 15% cashback at selected retailers
2. Club Lloyds Silver Account
- New Fee: £14.50/month (£11.50 + £3 fee)
- Benefits:
- All Club Lloyds perks (Disney+, cinema tickets, savings & mortgage rates)
- European & UK family travel insurance
- AA breakdown cover
- Mobile phone insurance
- Fee-free spending abroad
3. Club Lloyds Platinum Account
- New Fee: £25.50/month (£22.50 + £3 fee)
- Benefits:
- All Club Lloyds Silver perks
- Worldwide family travel insurance
- AA breakdown cover
- Mobile phone insurance
New Perk: Fee-Free Spending Abroad
From April 14, 2024, Club Lloyds customers will enjoy fee-free debit card spending abroad. This can result in significant savings for frequent travelers who previously paid foreign transaction fees.
Example:
Previously, spending £1,000 abroad might have incurred a £29.50 fee (2.95%). With this change, you pay nothing extra.
How to Avoid the Fee Increase
To avoid paying the higher fee, you can:
- Deposit £2,000 or more each month into your Club Lloyds account.
- Switch to a different Lloyds account that doesn’t charge a monthly fee if you don’t need the extra perks.
- Use your lifestyle benefits to get the most value out of the fee if you can’t avoid it.
Tip: If you regularly use Disney+ (worth £95.88/year) or go to the cinema six times a year, the fee might still offer good value.
Why Is Lloyds Making This Change?
A Lloyds Bank spokesperson explained that the fee supports the valuable benefits offered by the account, like Disney+ subscriptions, cinema tickets, and cashback rewards.
The bank also highlighted that 90% of Club Lloyds customers avoid paying the fee by meeting the £2,000 deposit requirement.
Comparing the Costs & Benefits
| Account Type | Monthly Fee (Current) | Monthly Fee (From June 2) | Annual Increase | Key Benefits |
|---|---|---|---|---|
| Club Lloyds | £3 (waived if £2,000 deposit) | £5 (waived if £2,000 deposit) | £24 | Disney+/Cinema tickets, cashback, interest |
| Club Lloyds Silver | £14.50 (£11.50 + £3) | £16.50 (£11.50 + £5) | £24 | Travel insurance, breakdown cover, mobile insurance |
| Club Lloyds Platinum | £25.50 (£22.50 + £3) | £27.50 (£22.50 + £5) | £24 | Worldwide insurance, breakdown cover, mobile insurance |
Note: The base fee (£3 rising to £5) applies only if you don’t meet the £2,000 monthly deposit threshold.
Is the Account Still Worth It?
Despite the fee increase, the Club Lloyds account remains popular due to its attractive benefits. For example:
- Disney+ Premium costs £7.99/month – saving you £95.88 per year.
- Cinema tickets cost £6-£10 each – so 6 free tickets could be worth £60+.
- Cashback offers can further reduce your costs if you use your card regularly.
For frequent travelers, the fee-free spending abroad adds even more value, especially for those with Club Lloyds Silver or Platinum accounts.
Timeline of Changes
- April 14, 2024 – Fee-free debit card spending abroad begins.
- June 2, 2024 – Monthly fee increases from £3 to £5.
The upcoming fee increase for Club Lloyds accounts may cost some customers up to £24 more per year, but the value of the benefits—like Disney+ subscriptions, travel insurance, and fee-free spending abroad—can still make the account worthwhile.
To avoid the new fee, consider depositing £2,000 each month or switching to a more basic account if the perks aren’t valuable to you. With smart money management, you can continue to maximize the account’s benefits while minimizing costs.
| Visit for More News and Updates | WSOA NEWS |
FAQ’s
Why is Lloyds Bank increasing the Club Lloyds account fee?
Lloyds Bank says the fee increase supports the benefits offered, like Disney+ subscriptions, cashback, and travel insurance.
When does the new fee take effect?
The new £5 monthly fee starts on June 2, 2024.
How can I avoid paying the fee?
You can avoid the fee by depositing at least £2,000 into your account each month.
What new benefits are being added?
From April 14, 2024, Club Lloyds customers can spend abroad using their debit cards without foreign transaction fees.
How much more will I pay per year?
If you don’t meet the £2,000 deposit requirement, you’ll pay an extra £2 per month, totaling £24 more per year.
Does this affect all Club Lloyds accounts?
Yes, the fee increase applies to Club Lloyds, Club Lloyds Silver, and Club Lloyds Platinum accounts.
