Foreign currency transaction fees scrapped for Club Lloyds subscribers
Lloyds Bank has introduced a major advantage for its Club Lloyds customers, eliminating foreign currency fees on transactions made abroad. This new benefit, effective from April 14, enables clients to make debit card payments, withdraw cash from ATMs, or obtain cash over the counter without incurring a foreign transaction fee.
The Club Lloyds account comes with a monthly fee of £3, which will rise to £5 starting June 2. However, customers depositing £2,000 or more monthly can have this fee waived, allowing them to enjoy perks like reduced cinema tickets, magazine subscriptions, and even Disney Plus subscriptions, all without the extra cost. The removal of foreign currency fees is expected to make banking with Lloyds more appealing for frequent travelers, as it now aligns with various 'challenger' banks such as Monzo, Starling, and Chase, who have implemented the same policy.
Club Lloyds is among a growing number of packaged bank accounts that offer premium perks alongside regular banking services. For instance, Club Lloyds account holders can benefit from preferential rates on savings accounts, boasting interest rates up to 6.25%, positioning them among the top savings accounts currently available. It is essential to note that these benefits come at a cost, with the platinum package costing £22.50 a month.
Halifax Clarity credit card, Barclaycard Rewards credit card, and NatWest credit card are among the other cards that do not charge foreign transaction fees, offering travelers additional options. Revolut has also altered its rules for some premium customers, removing extra weekend currency exchange fees for Premium, Metal, and Ultra clients, while charging reduced fees for Plus account holders.
When abroad, tourists often ponder whether to pay in the local currency or stick with sterling. Research by NatWest indicates that holidaymakers could be losing £17 million annually by opting to pay in sterling instead of using the local currency. This discrepancy arises due to poor merchant currency conversion rates when paying in sterling, which exceed market rates. Paying in local currencies helps travelers avoid these unfavorable exchange rates and potentially only incur foreign currency fees from their banks. It is advisable to carefully review the terms and conditions of any card being used abroad to avoid unexpected charges.
- The Club Lloyds account, with its reduced cinema tickets, magazine subscriptions, and Disney Plus subscriptions, offers savings on entertainment, but clients should be aware that the monthly fee increases from £3 to £5 starting June 2.
- With the elimination of foreign currency fees, Club Lloyds competitive savings accounts offering up to 6.25% interest rates, and its alignment with various 'challenger' banks like Monzo, Starling, and Chase, this bank is making its financial services more appealing to frequent travelers, potentially encouraging property and business transactions abroad.
