Full list of bank account changes coming in weeks

BRITISH bank accounts are making major changes to their banking, savings and credit card services in the next few weeks.

For instance, Barclays is making big changes to its minimum repayment rules, while Lloyds customers could see overdraft fees rise.

Meanwhile, First Direct is scrapping text message banking and Metro Bank is slashing interest rates.

Here are all the key changes you need to know about, and we explain what they mean for you.

Barclays

Credit card repayments

Barclays is changing the way that it calculates the monthly minimum repayments for credit card customers in July, as revealed by The Sun.

The bank is changing from a tiered structure, where customers pay between 2.25% and 4.25% of their overall balance, to one that calculates repayments based on each individual customer’s circumstances.

From July 22, customers will pay the highest of the following each month:

• 1% of their main credit card balance
• 1% of the main balance plus any interest, default fees or account fees
• The customer’s total outstanding balance, if this is less than £5.

The bank said that 80% of customers will be better off under the new rules.

However, if you only make minimum monthly repayments, your balance will clear much more slowly, meaning you’ll pay substantially more interest overall.

If you can afford to, you should consider overpaying each month to clear the debt faster.

APR

Barclays has also said it will change the APR that it charges some customers. 

While Barclays said the majority of customers will see their APR stay the same or decrease, The Sun understands some customers on “historic rates” will see an increase of up to 9.9 percentage points.

Barclays customers should read communications carefully to see how their rates might change. You should get at least two months’ notice for increases.

Compare the new rate carefully with competitor products to see if you can get a better deal elsewhere.

Lloyds Banking Group

Overdrafts

Lloyds banking group is making changes to its overdraft fees from August.

The new rules will affect customers who bank with Lloyds Bank, Halifax or Bank of Scotland.

Currently, the average Lloyds Banking Group customer pays 39.9% in interest, although some account holders with premium accounts pay less.

For instance, Club Lloyds members currently pay just 27.5%.

However, from August customers will be placed into one of four tiers, paying either 19.9%, 29.9%, 39.9%, or 49.9%.

Some of the increases will be introduced in stages, for instance, anyone moving to the highest tier will see a 5% increase in August and then another hike in January 2025.

Club Lloyds members that are being shifted to the 39.9% rate will face a 7.5% hike in August followed by 5% next year.

Lloyds has said it will determine which tier someone is placed on based on their credit information and monthly account activity.

But if your rate is rising you will have 60 days’ notice, which means you may be able to switch providers to get a better deal.

Overseas debit card fees

Lloyds Bank is also making changes to the charges you pay when you use your debit card overseas.

From July 1, silver and platinum account holders will be able to use their cards without any international charges, including for withdrawing money from cash machines.

However, these packaged accounts don’t come free. From July the silver account will set you back £11.50 per month, while the Platinum accounts cost £22.50 each month.

You do get a range of other benefits including travel insurance, AA breakdown cover and mobile phone insurance, but you should weigh up carefully whether the benefits are worth the costs.

Metro Bank

Metro Bank has warned that its limited-edition account savings rates will fall below 4% from July 8.

Customers who opened limited edition instant access accounts or instant cash ISAs between November 10, 2023 and February 12, 2024, will be affected.

Currently, these accounts will be earning one of four rates: 5.22%, 4.97%, 4.51, and 4.01%.

Customers have been given at least two months’ notice by the bank.

With several accounts available paying more than 4%, and Metro Bank savers should shop around to make sure they are getting the best return possible on their nest eggs.

Nationwide

Nationwide has announced three new customer benefits – including a switching bonus and a share payment for members who meet certain criteria.

The first is its Member Exclusive Bond, which offers a rate of 5.5% AER for 18 months and will be available to all 16 million existing members. 

The rate is 1.25% higher than Nationwide’s existing 1-year Fixed Rate Bond. 

For the maximum investment of £10,000, that means £125 extra interest over a year and £193 over 18 months.

The bond can be opened in a branch, via the banking app or through internet banking. 

The building society has also announced its second Fairer Share Payment, which will distribute £385 million to its members.

To qualify, you need to use Nationwide for everyday banking and have a qualifying savings or mortgage product too.

We revealed last weekend how millions of customers are unhappy after discovering they don’t qualify.

The Fairer Share Payment is £100 and will be paid directly into current accounts of eligible members this month. 

Finally, for customers who had a Nationwide product before March 31 this year but who currently do not use Nationwide for their everyday banking, it is offering a £200 switch offer. 

Shawbrook Bank

Shawbrook Bank has increased the interest rate on its three-year fixed rate cash ISAs to 4.4% AER.

This is one of the best fixed rates available if you’re prepared to lock your savings away.

It’s also increased rates on its one-year fixed ISA to 4.8% and on its five-year fix to 4.11%.

Interest can be paid monthly or annually, but you can only open one cash ISA each year. You’ll need a minimum deposit of £1,000 too.

First Direct

First Direct is axing its text message banking service in a few months’ time.

This means thousands of customers will no longer be able to receive text notifications about their current account balance.

They will also stop receiving “mini-statements” via SMS, which include your balance and the five most recent transactions.

The service will cease for good on Saturday, August 10.

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