Major high street banks including Barclays, Lloyds, and Santander are set to implement significant changes that could affect millions of customers in the next month.
These alterations will have an impact on current account and credit card holders, with some mortgage customers also potentially affected. It’s worth taking the time to review these updates to see if they’ll affect you.
If you’re not happy with any changes, it might be time to switch banks and take advantage of the numerous switch offers currently available, reports the Mirror. You do not have to stay with one bank just because you have been with them awhile, finding the one that best suits your finances is more important.
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At present, you can receive up to £175 for switching banks – but always ensure you read the terms and conditions first to confirm your eligibility.
Barclays
Barclaycard is reducing minimum repayments for credit card customers. This means you’ll likely repay less each month, but you could end up being in debt for a longer period and pay significantly more in interest.
Currently, you pay the highest of 3.75% of your balance, 2.5% of your balance plus interest, or £5.
This applies to most Barclaycards, including Avios, Platinum, and Rewards. However, from July 22, this will decrease to the highest of 1% of your balance, 1% of your balance plus interest, or £5.
If you have a 0% interest card, which is the cheapest way to repay credit card debt, you won’t be affected.
Lloyds
Lloyds Banking Group, which includes Lloyds, Halifax, and Bank of Scotland, is altering the interest rate fees it charges on its overdrafts. The two standard rates that most customers are charged when they fall into their overdraft are currently 39.9% and 49.9%.
For those who pay £3 a month for a Club Lloyds Bank account, there is a lower overdraft fee of 27.5%. However, from August, the banking group will introduce two additional overdraft rates of 19.9% and 29.9%.
This means that some customers will pay less for their overdraft, while others will pay more. The rate you’re charged will depend on your credit history and how you use your account. The standard rate will be 39.9%.
There will also be two temporary six-month rates of 34.9% and 44.9%, which will then increase to 39.9% and 49.9%. From July 1, Lloyds Bank customers with silver and platinum accounts will be able to use their cards abroad without incurring any international charges.
Nationwide
Nationwide has begun distributing its latest £100 Fairer Share bonus payment to nearly 3.9 million customers. To qualify for this payment, you must have a current account with Nationwide, as well as a mortgage or savings account.
You should receive the money by June 28. Nationwide has also confirmed a £200 member-only switching incentive today, along with a new Member Exclusive Bond for all existing members, offering a rate of 5.5% AER/gross (fixed) for 18 months.
NatWest
NatWest is set to hike the monthly charges on some of its packaged bank accounts. Customers with the Reward Black account will see their fees rise from £31 to £36 a month starting June 28.
Additionally, the monthly fee for the Reward Platinum account will increase from £20 to £22.
However, the monthly fee for the NatWest Reward Silver account will stay at £10, and the £2 monthly charge for the NatWest Reward account remains unchanged. On a less positive note, NatWest is also reducing the time frame in which mortgage borrowers can secure a new rate before their current deal ends, cutting it down from six months to four.
Santander
Santander is making a similar move by shortening the period for securing a new mortgage deal from six months before your current mortgage ends to four months.
According to Martin Lewis’ MoneySavingExpert.com, this change means that borrowers will have less time to shop around for a better rate before their existing mortgage expires.
Other major banks, including Barclays, Halifax, HSBC, Lloyds, and NatWest, still offer the option to lock in a new mortgage rate six months in advance.
Metro Bank
From July 8, Metro Bank is set to alter the interest rate on some of its variable savings accounts. This change will impact those who opened limited edition instant access accounts or instant cash ISAs between November 10, 2023 and February 12, 2024.
These accounts currently offer interest rates of 5.22%, 4.97%, 4.51%, or 4.01%. However, these rates will decrease to 3.95% from July 8.
