Martin Lewis and his Money Saving Expert team have issued an urgent alert to all Lloyds Bank and Halifax customers. The consumer champion, known for his appearances on BBC Sounds and ITV, has had his MSE team publish a guide detailing changes to some popular bank accounts that come into effect today (Friday August 2).
MSE’s warning reads: “Lloyds, Halifax or Bank of Scotland customer? Your overdraft fees may be rising from TODAY full help and who’s affected.”
If you’re using your overdraft, you might find yourself paying more from today (Friday 2 August).
The Lloyds Banking Group, which encompasses the three financial institutions, has stated that following their latest overhaul, most clients will face the same or lower charges. However, there are those who will incur higher costs, with certain Club Lloyds members witnessing their interest rates soar from 27.5 percent to a staggering 49.9 percent.
Previously, customers were subject to rates of 27.5 percent (applicable to some Club Lloyds account holders), 39.9 percent (the rate for the majority of Lloyds, Halifax, and Bank of Scotland customers), and 49.9 percent (also applicable to some customers across these banks), reports Birmingham Live.
The revised rates are set at: 19.9 percent, 29.9 percent, 34.9 percent (this is a temporary six-month rate before it increases to 39.9 percent), OR 39.9 percent, 44.9 percent (another temporary six-month rate that will rise to 49.9 percent thereafter), and finally, 49.9 percent.
If you’re a customer facing an interest rate hike, brace yourself for changes from Friday 2 August. On the flip side, if your rate is on the decline, you would have already seen the benefits earlier this year.
The money-saving experts at MSE advise: “Check if you can switch to an account with an interest-free overdraft. If you’re not desperate to stay with Bank of Scotland, Halifax or Lloyds, you may be better off switching to a bank with a 0 percent overdraft.”
The imminent changes will impact several accounts; for Bank of Scotland customers, the Platinum Account and Silver Account, along with the Classic Account, are set for a shake-up. Lloyds Bank is also adjusting rates for its Classic Account, Club Lloyds Account, and Silver Account, including the Club Lloyds Silver Account and Club Lloyds Platinum Account.
Halifax is making similar moves with its Ultimate Reward Current Account, Reward Current Account, and Current Account all subject to the upcoming adjustments.
