closing tag is in template navbar
Time Factors Watches



TZ-UK Fundraiser
Results 1 to 15 of 15

Thread: Lloyds Bank

  1. #1

    Lloyds Bank

    I bank with Lloyds, last year they started charging for my current account, it still works out cheaper than AA and Travel Insurance just, today I got a letter that I don’t understand, they are changing my credit card from BOE base rate to their own, I don’t use the facilities but don’t understand the subtle difference.

    I know that most of the mortgage companies have managed to successfully pull the stunt of inventing their own higher base rates and not link to MLR, an I right in guessing that it’s the same thing so they are preparing to hike their rates?

  2. #2
    Craftsman Halitosis's Avatar
    Join Date
    Nov 2016
    Location
    West Lothian
    Posts
    568
    You'll undoubtedly be right in your thinking and it's unlikely this change will be to your benefit. Lloyds' base rate will be higher than the BoE's.

  3. #3
    I have had a "Gold Service" current account with Lloyds for donkeys years and maintain sufficient credit to avoid paying a fee.
    I got a change to your travel benefits letter a few days ago and it had no "summary of changes" so no idea what changed.
    My Tui holiday was cut short in 2020 and they refused me a cash refund. My policy suggested I was covered but my claim to Lloyds was refused flat.
    My last Sainsbury grocery order was refused as Lloyds decided it was "an unusual online transaction" despite me making it 52 weeks a year!
    When I complained they referred me to "Terms and Conditions of card use.
    What a shower!

  4. #4
    Quote Originally Posted by adrianw View Post
    I bank with Lloyds, last year they started charging for my current account...
    Why is that? Neither mine nor SWMBO's Lloyds current account get charges levied upon them.

    R
    Ignorance breeds Fear. Fear breeds Hatred. Hatred breeds Ignorance. Break the chain.

  5. #5
    Quote Originally Posted by ralphy View Post
    Why is that? Neither mine nor SWMBO's Lloyds current account get charges levied upon them.

    R
    AA, Travel, Various insurances, facility(never used) the original deal was provided I kept £7500 in the account everything was free, after 16 years they gave me a months notice.I didn’t move the account as any saving was marginal and the cash balance still counted toward my offset.

  6. #6
    Lloyds have closed all their ‘free if you keep x balance’ legacy enhanced benefit accounts as of this month.

    You either move it to a non benefit account, a substantially lower benefit account or start paying monthly to maintain the one you have.

    I complained, as a 30 year plus client who had complied by all their conditions at all times, and got told to choose to either downgrade, pay the new fee or leave…

    Make of that what you will.

  7. #7
    Quote Originally Posted by the.admiral View Post
    Lloyds have closed all their ‘free if you keep x balance’ legacy enhanced benefit accounts as of this month.

    You either move it to a non benefit account, a substantially lower benefit account or start paying monthly to maintain the one you have.

    I complained, as a 30 year plus client who had complied by all their conditions at all times, and got told to choose to either downgrade, pay the new fee or leave…

    Make of that what you will.
    It seems that they have forgotten that it was their customers and taxpayers that bailed them out.

  8. #8
    Master M1011's Avatar
    Join Date
    Jun 2020
    Location
    London, England
    Posts
    1,502
    Lloyds offer free current accounts, just like all the other major banks. In this country anyway, abroad it's quite normal to expect to pay for your banking service.

    If you choose to pay for a package account, then you're surely weighing up the benefits vs the cost and deciding if it makes sense for you.

    As for the confusion around paying for the account - you've always paid for the account. Keeping £7,500+ balance in the account for example benefits the bank (capital to lend out) and the opportunity cost to you was the equivalent interest you could have received on that balance in a savings account. BOE base rate has dropped through the floor so the value of your deposit is now worth less in real terms to the bank, and the opportunity cost is also a lot less as savings rates are very low. So the equation is no longer balanced. You're getting the same perks but the value of your contribution (aka maintaining a balance) has fallen significantly. Hence why they've most likely decided to charge a fee.

    Don't get me wrong, banks seek to make a profit so I'm not saying there won't be a motive there. But it seems unreasonable to expect no impact when the BOE base rate is a fifth of the rate five years ago.

    To put it another way, you might have got 3% on your £7,500 in a savings account a few years back, that's about £20 a month. Now you'll get what, a sixth of that? 0.5%? That's more like £3. So why expect the same benefit? If saving rates has risen and you could now get 6x more for your money (so equiv £120 a month value for your £7.5k balance), would you still be happy to hand that over to the bank in exchange for phone insurance and breakdown cover?

    Anyway, I've definitely over-complicated this, but hopefully there's something useful in there...

  9. #9
    Master Rod's Avatar
    Join Date
    Jun 2003
    Location
    Co. Durham
    Posts
    9,318
    Shut Lloyds account down and get into Starling Bank,... best British bank last 4 years and they are brilliant.

  10. #10
    Master M1011's Avatar
    Join Date
    Jun 2020
    Location
    London, England
    Posts
    1,502
    Quote Originally Posted by adrianw View Post
    It seems that they have forgotten that it was their customers and taxpayers that bailed them out.
    It's an interesting soundbite, but not a particularly fair reflection on that situation in my humble opinion.

    Retail banks didn't cause the financial collapse, that was squarely on the shoulders of investment banks.

    The largest mortgage provider in the UK struggled during an unprecedented housing market crisis when people stopped paying their bills and the market price of houses no longer covered the loan capital - not exactly surprising. It's good that more robust capital requirements are now in place (set by the regulator) for the future.

    It's also notable that the bail-out was recovered in full from Lloyds, so ultimately it cost us (the tax payers) nothing in the end.

  11. #11
    Quote Originally Posted by M1011 View Post
    Lloyds offer free current accounts, just like all the other major banks. In this country anyway, abroad it's quite normal to expect to pay for your banking service.

    If you choose to pay for a package account, then you're surely weighing up the benefits vs the cost and deciding if it makes sense for you.

    As for the confusion around paying for the account - you've always paid for the account. Keeping £7,500+ balance in the account for example benefits the bank (capital to lend out) and the opportunity cost to you was the equivalent interest you could have received on that balance in a savings account. BOE base rate has dropped through the floor so the value of your deposit is now worth less in real terms to the bank, and the opportunity cost is also a lot less as savings rates are very low. So the equation is no longer balanced. You're getting the same perks but the value of your contribution (aka maintaining a balance) has fallen significantly. Hence why they've most likely decided to charge a fee.

    Don't get me wrong, banks seek to make a profit so I'm not saying there won't be a motive there. But it seems unreasonable to expect no impact when the BOE base rate is a fifth of the rate five years ago.

    To put it another way, you might have got 3% on your £7,500 in a savings account a few years back, that's about £20 a month. Now you'll get what, a sixth of that? 0.5%? That's more like £3. So why expect the same benefit? If saving rates has risen and you could now get 6x more for your money (so equiv £120 a month value for your £7.5k balance), would you still be happy to hand that over to the bank in exchange for phone insurance and breakdown cover?

    Anyway, I've definitely over-complicated this, but hopefully there's something useful in there...
    I think you missed that it is an offset account
    but they did renege on a long standing written agreement, the same as a lot of people I use my offset as a tax efficient way of saving, the current account was one of the benefits. I was just answering Ralphy’s question, if you’re correct he will be getting a letter very soon.

    However my original question was about the change in credit card base rate terms,
    Last edited by adrianw; 16th September 2021 at 23:02.

  12. #12
    Master M1011's Avatar
    Join Date
    Jun 2020
    Location
    London, England
    Posts
    1,502
    Quote Originally Posted by adrianw View Post
    I think you missed that it is an offset account
    but they did renege on a long standing written agreement, the same as a lot of people I use my offset as a tax efficient way of saving, the current account was one of the benefits. I was just answering Ralphy’s question, if you’re correct he will be getting a letter very soon.

    However my original question was about the change in credit card base rate terms,
    To be honest my reply was more to the general emerging theme in the thread than you specifically, with a few folk referencing a displeasure at paying for a premium account. An offset account is pretty rare these days and a valuable benefit if you have one IMO.

    I don't know about the credit card rate query, so I'll steer clear on that one.

  13. #13
    Craftsman SydR's Avatar
    Join Date
    Nov 2019
    Location
    Lothian.
    Posts
    528
    Quote Originally Posted by Rod View Post
    Shut Lloyds account down and get into Starling Bank,... best British bank last 4 years and they are brilliant.
    I’ve recently moved to Starling, from HSBC (for a variety of reasons). The move was totally painless and I very happy so far.

  14. #14
    Master Rinaldo1711's Avatar
    Join Date
    Mar 2007
    Location
    Suffolk
    Posts
    7,912
    I’ve been with Lloyds for over 50 years and they were better in the ‘old’ days than today. I pay £21.00 per month for a Platinum account and the associated benefits. I suppose I’m a creature of habit (lazy) but I really should think about changing.

  15. #15
    Quote Originally Posted by Rod View Post
    Shut Lloyds account down and get into Starling Bank,... best British bank last 4 years and they are brilliant.
    Been with them since they launched and am more than happy, the app is superb, although not my main bank I am really impressed.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Do Not Sell My Personal Information