Lloyds want you to ditch your free current account - and pay £60

30 April 2014

Vantage account holders at Lloyds are being persuaded to get rid of their free current account and replace it with another current account which could charge up to £60 a year. WHAT A GREAT DEAL!

club lloyds

The ‘incentive’ is rather dubious, too –basically if you don’t quit your Vantage account and take the new ‘Club Lloyds’ account, you’ll have your interest rates cut to as low as 0.5% - or, if you have less than £1000, you won’t earn any interest at all.

But if you become a fully paid up member of Club Lloyds, you might find yourself getting charged. Because unless you have a minimum of £1,500 in your account, you'll incur a fee of £5 a month.

By calling it ‘Club Lloyd’s’ - as if it’s some kind of exclusive country club featuring smiling people with boat shoes and lemon yellow jumpers casually draped round their shoulders - Lloyds think that you will automatically want to take them up on their lousy deal. But if you earn less than £22500 a year, you’d be better off keeping your money in a jam jar at the bottom of your wardrobe.

But it’s OK – because it’s easy to switch to a host of better deals out there, some of which offer cash incentives to join, rather than charging you £60 just to stay...

TOPICS:   Banking   Consumer Advice   Investments   Economy

4 comments

  • Paul
    This is disgusting charge the people who have the least money more for having a bank account. I switched from natwest to nationwide as they where charging me £6 a month for using an agreed overdraft. Pay nationwide 10 a month but get break down cover, phone insurance and £100 fee free overdraft!
  • JonB
    "...if you don’t quit your Vantage account and take the new ‘Club Lloyds’ account, you’ll have your interest rates cut to as low as 0.5%." So they're not forcing people to switch then, just "incentivising" the switchers? Sounds like a non-story.
  • Bob
    Better yet, almost all of their current accounts, so everything but the Islamic, Club and Under 19s, now pay "N/A" interest, or 0%, including the 2 with monthly fees. Not that it was much better at 0.1%. Its almost as if they dont want customers, or its part of some insidious plan to get all of the Lloyds customers to move to TSB and then wind up the bank….
  • Ind
    This is a little odd to me. Can anyone clarify that if you have a balance of over £5,000 you get no interest paid at all? Or is it that interest is paid up to the £5,000 limit?

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