Major bank to raise current account 'club' fees while offering £175 switching bonus

• Lloyds Bank is increasing the Club Lloyds account fee from £3 to £5 per month starting in June

• Customers who don’t meet deposit requirements could pay an extra £24 per year

• The account offers perks like a Disney+ subscription, cinema tickets, and interest on savings

• Lloyds has launched a £175 switching offer for customers who move their account before April 1

• The switch bonus is paid within three days, but those who have received a similar offer since April 2020 are ineligible

A major UK bank has announced changes to one of its popular accounts, impacting millions of customers.

Starting Monday June 2, the monthly fee Lloyds’ Club Lloyds account will rise from £3 to £5. The increase could see customers who fail to meet minimum deposit requirements paying an extra £24 per year.

Club Lloyds, a premium current account, provides lifestyle benefits, cashback rewards, and exclusive interest rates on linked savings accounts. The fee increase is the first adjustment to Club Lloyds charges in over eight years.

Despite the change, the account still operates like a standard current account, enabling customers to set up direct debits and standing orders while enjoying additional perks.

Club Lloyds account holders can select from a range of annual perks, including a 12-month Disney+ subscription worth £59.88.

Alternatively, customers can choose six Vue or Odeon cinema tickets, potentially saving up to £65.94, depending on location and screening times.

Other benefits include a magazine subscription or a digital Coffee Club and Gourmet Society membership.

The account also offers the opportunity to earn up to £90 per year in credit interest, with 1.5% paid on balances up to £4,000 and 3% on balances between £4,000 and £5,000.

A personalised morning news round-up with NationalWorld Today - sign up here.

But while Club Lloyds fees are rising, in other news, Lloyds has just introduced a new £175 switching offer for customers who transfer their current account before April 1.

The cash reward will be paid within three days of completing the switch, making it one of the fastest-paying deals available.

Both new and existing customers can claim the offer by switching to a Club Lloyds account through the Current Account Switch Service. To be eligible for the £175 switch offer, customers must transfer at least three active direct debits to Lloyds.

A monthly deposit of £2,000 is required to avoid the standard £3 account fee, which of course will rise to £5 in June. The switch must be completed through the Current Account Switch Service, which will automatically close the customer's old account.

Customers who have received a switching bonus from Lloyds Bank, Halifax, or Bank of Scotland since April 2020 are not eligible for this offer.

What do you think about Lloyds' fee increase and switching offer? Will you be sticking with Club Lloyds or looking for a better deal elsewhere? Share your thoughts in the comments section.