Lloyds is making a huge change for Club Lloyds members who use their cards abroad. As of April 14, all Club Lloyds customers will be able to use their Lloyds debit card to make purchases or withdraw cash anywhere in the world free of charge.
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: “When you buy things outside the UK, you may be asked to pay in pounds sterling, or in the local currency. Paying in a local currency could help you to avoid charges.
“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.”
Club Lloyds is a type of packaged bank account that gives you additional perks in exchange for a monthly fee. 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 exclusive savings accounts, including 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.
There are three different Club Lloyds tiers available. The update will benefit basic Club Lloyds customers, as this account currently does not come with fee-free spending abroad. The more expensive Club Lloyds Silver and Platinum accounts already come with this perk. Club Lloyds Silver and Platinum accounts come with £11.50 and £22.50 monthly fees, respectively.
In comparison, the regular Club Lloyds account charges a £3 monthly fee, although this is rising to £5 from June 2. This monthly fee waived if you pay in £2,000 or more each month. Lloyds is increasing the interest-free allowance on Club Lloyds arranged overdrafts to £100 from April 14.
Martin Turner, Head of Current Accounts at Lloyds said: “With Club Lloyds, your holiday spending just got easier this Easter. Customers can now use their debit card fee-free when spending worldwide. Once you land at your dream destination, you can pay for a meal, book a trip or keep the kids topped up with ice cream, by simply using your debit card or by withdrawing cash with no debit card fee.”
It comes after Lloyds made a huge change to its overdraft fees back in January this year. Previously, the cheapest rate was 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 a higher rate of 49.9% – but new rates of 19.9% and 29.9% have also been introduced It means someone who was on the cheapest rate of 27.5% as a Club Lloyds member, may now be on the highest rate of 49.9%.
But some customers have also seen their rate go down by being moved to the 19.9% rate. Lloyds told MoneySavingExpert.com the “vast majority” of people are paying less or the same – however, some customers have been moved to a higher rate.
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