Lloyds, Halifax and Bank of Scotland confirm major change for customers
All new Lloyds, Halifax and Bank of Scotland customers will be given a 29.9% representative rate for their overdraft going forward - here are how the changes impact you
Lloyds, Halifax and Bank of Scotland are changing overdraft fees for millions of customers - and it may save you money. The banking group currently offers different overdraft rates, dependent on your credit score.
The different rates you can currently be offered include: 19.9%, 29.9%, 39.9% and 49.9%. The majority of customers have an overdraft rate of 39.9%.
But changes being introduced over the next few days mean all new customers will be given a 29.9% representative rate for their overdraft.
At the same time, existing customers currently paying 39.9% or 49.9% on their overdrafts will have their rate reduced to 29.9%. Lloyds will contact customers to explain the change.
An overdraft allows you to borrow money through your bank via your current account, when your account balance is zero or negative. But it can be an expensive way to borrow money - check out our tips below for how to cut your costs.
A Lloyds Bank spokesperson told The Sun: "We know many customers find it helpful to have an overdraft there for life's unexpected costs and, to make that as affordable for our customers as possible, we're lowering the interest rate most customers typically pay when they use an overdraft.
"This means the cost of using an overdraft will become cheaper for many, with Lloyds, Halifax and Bank of Scotland now offering one of the lowest representative overdraft rates on the market."
It comes after Lloyds increased the fee on its Club Lloyds package bank account from £3 to £5 a month. The monthly fee is still waived if you pay in £2,000 or more each month.
Club Lloyds is a current account that gives you additional perks for a monthly fee - for example, you can choose between a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off certain food and drink brands.
How to cut your overdraft costs
If you're struggling with your overdraft, check if you're able to switch to an account with a 0% overdraft, so you have more time to clear what you owe without being charged interest.
Make sure you check if you're likely to be eligible first before you apply. Another alternative could be to look at a 0% money transfer card.
These are a special type credit card that pays cash into your bank account, for a one-off fee. You would then use this money to pay off your overdraft, so you're not accruing more interest in overdraft fees.
You should always make sure you can pay off your 0% money transfer card before your interest-free period is up - otherwise you'll start to be charged interest, which defeats the point of using this card.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
3 hours ago
- Scottish Sun
Halifax to quietly axe key perk that could see you win £100,000 – and customers will be fuming
Plus we share how savers can be entered into draws to win thousands of pounds IN IT TO WIN IT IN IT TO WIN IT Halifax to quietly axe key perk that could see you win £100,000 – and customers will be fuming Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HALIFAX is stopping its popular Savers Prize Draw - which gives customers the chance to win up to £100,000 every month. The competition has been a key perk for savers since it launched in 2011, but the final draw is to take place in September this year. Sign up for Scottish Sun newsletter Sign up 1 Halifax is getting rid of its savers prize draw in September Credit: Getty Each month there are three prizes of £100,000, 100 prizes of £1,000 and 1,500 of £100. To be in with a chance, you have to keep £5,000 or more in a qualifying account for a month, and be registered to take part. There has also sometimes been a 'superdraw' with a much higher top prize, including one of £500,000. Halifax customers were today told the draw would be closing in a message sent out on the bank's messaging service. It said: 'Our Savers Prize Draw is coming to an end. Before it closes, you'll automatically be entered into the remaining prize draws if you qualify. 'We'll let winners know within one month of the draw taking place, so it's a good idea to make sure your contact details are up to date.' A spokesperson for Lloyds Banking Group told The Sun: "Our customers' expectations continue to change, and we are taking the opportunity to look at how we can reward customers in different ways in the future. "Our Savers' prize draw has made a huge difference to thousands of customers, with over £100million awarded since our first draw in 2011" The draw was popular because it gave people the chance of winning big money without the risk of losing anything, although the odds were unclear. It also meant missing out on savings accounts run by other banks with higher interest rates. Fresh wave of bank branches set to close for good in June If you like the idea of being in with a chance of winning a decent cash prize, without buying tickets, an alternative is buying Premium Bonds, which work in a similar way. Every £1 saved into Premium Bonds has a one in 22,000 chance of winning something, with the maximum prize being £1million every month. WHAT BANKS OFFER SIMILAR SERVICE There are plenty of other banks which offer similar services for customers. For example, the Association of British Credit Unions runs a PrizeSaver draw for customers. Credit unions are not-for-profit organisations offering local people or selected industries loans and savings accounts. You can take part if you're a member of a credit union linked to the scheme. Find out more about participating unions at You only need £1 to enter the draw and balances are capped at £200. Elsehwere, Kent Reliance runs a monthly prize draw for customers with savings of £100 or more, or with a mortgage account balance of £1,000 or more. It is one entry per person. If a joint account, then the first named account holder will be entered into the draw.
The Sun
3 hours ago
- The Sun
Halifax to quietly axe key perk that could see you win £100,000 – and customers will be fuming
HALIFAX is stopping its popular Savers Prize Draw - which gives customers the chance to win up to £100,000 every month. The competition has been a key perk for savers since it launched in 2011, but the final draw is to take place in September this year. 1 Each month there are three prizes of £100,000, 100 prizes of £1,000 and 1,500 of £100. To be in with a chance, you have to keep £5,000 or more in a qualifying account for a month, and be registered to take part. There has also sometimes been a 'superdraw' with a much higher top prize, including one of £500,000. Halifax customers were today told the draw would be closing in a message sent out on the bank's messaging service. It said: 'Our Savers Prize Draw is coming to an end. Before it closes, you'll automatically be entered into the remaining prize draws if you qualify. 'We'll let winners know within one month of the draw taking place, so it's a good idea to make sure your contact details are up to date.' A spokesperson for Lloyds Banking Group told The Sun: "Our customers' expectations continue to change, and we are taking the opportunity to look at how we can reward customers in different ways in the future. "Our Savers' prize draw has made a huge difference to thousands of customers, with over £100million awarded since our first draw in 2011" The draw was popular because it gave people the chance of winning big money without the risk of losing anything, although the odds were unclear. It also meant missing out on savings accounts run by other banks with higher interest rates. Fresh wave of bank branches set to close for good in June If you like the idea of being in with a chance of winning a decent cash prize, without buying tickets, an alternative is buying Premium Bonds, which work in a similar way. Every £1 saved into Premium Bonds has a one in 22,000 chance of winning something, with the maximum prize being £1million every month. WHAT BANKS OFFER SIMILAR SERVICE There are plenty of other banks which offer similar services for customers. For example, the Association of British Credit Unions runs a PrizeSaver draw for customers. Credit unions are not-for-profit organisations offering local people or selected industries loans and savings accounts. You can take part if you're a member of a credit union linked to the scheme. Find out more about participating unions at You only need £1 to enter the draw and balances are capped at £200. Elsehwere, Kent Reliance runs a monthly prize draw for customers with savings of £100 or more, or with a mortgage account balance of £1,000 or more. It is one entry per person. If a joint account, then the first named account holder will be entered into the draw. How to check if you've won IF you think you might have an unclaimed prize, the best way to check depends on what info you have about your Premium Bond account. You'll have been given both a Premium Bond holder's number and a National Savings and Investments number. If you know your Premium Bond holder's number, you can go to the NS&I website or download its prize checker app. Enter your holder's number and it'll tell you if you've any unclaimed prizes. If you don't know your holder's number, but have your NS&I number, you can use that number – which you'll find on any letters from NS&I – as well as your surname and password to log in to NS&I online and find your holder's number on the "account details" page. NS&I's prize checker app also accepts your NS&I number. If you don't know your holder's number or account number, you can phone NS&I on 08085 007 007 or write to it and ask for a replacement bond record to be sent to you. You should give as much detail as you can, for example your full name, address details, when and where you bought your Premium Bonds and how much they're worth. Alternatively, you can use NS&I's tracing service or the My Lost Account website, both of which can track down your Premium Bond details. They ask you to fill out info about yourself including your name, address, an estimate of how many Premium Bonds you hold and how long you've held them. If you find you do have an unclaimed prize, you'll need to write to NS&I at: NS&I, Sunderland SR43 2SB. Give as much information as you can, including your name and any information about your Premium Bonds. Prizes will then be sent to your home address as a warrant, which is like a cheque. Unfortunately, you can't have unclaimed prizes paid directly into your bank account. The process is slightly different if the Bond holder has died – you'd first need to inform NS&I of the death and then follow the steps above. Any prize money will be paid to whoever inherits the Bond holder's estate.
Times
2 days ago
- Times
I'm grieving and I made a mistake, now my £8k inheritance is lost
My mother died recently, which was the last in a sequence of horrible events after the death of my son and my own cancer diagnosis. Mum left me a small inheritance of £8,370 which was sent to my NatWest account. I planned to transfer it to an account that my husband holds with Lloyds so that he could buy a new boiler for our house. We are both pensioners and the money from my mum's estate is a lifeline to us. I made the transfer through my NatWest banking app, but I wasn't thinking clearly when I sent it instead to my Lloyds credit card, which had expired years ago. I know there's no excuse for this error but my mum's death was a dreadful experience. I am also still unwell and undergoing a series of investigations, which I hope goes some way to explain why I wasn't thinking clearly when I sent this payment. I immediately realised that the money had gone to the wrong account and felt sick to my stomach. I was in tears and spoke to NatWest to see if it could retrieve the money from Lloyds. Dealing with various Lloyds call centres has also been an absolute nightmare. I have been promised return calls that never materialise. I have been on hold for hours at a time while the operators vary from being pleasant to rude and impatient. I admit I've become frustrated and tearful at times but I have always explained the background of my situation. I made the mistake 12 days ago and the funds have now disappeared into the ether. No one will tell me where the money is or when I will get it back. I just want the money returned to my NatWest account. The stress of this situation is having a serious affect on my already poor health. I am terrified I won't see this money again, which is sorely and address supplied I was so sorry to hear of the devastating series of events that had turned your life upside down and can totally understand why you were not thinking clearly when you made this payment. Usually when money is sent to an expired account, the payment is retrieved and returned to the source. But your case was slightly different because there was an outstanding debt linked to your old credit card account. You told me this amounted to £60 but you had long forgotten about it. The problem was that this debt had been outstanding for so long that Lloyds had passed the account's history to a debt collection agency. This made it harder for Lloyds to track down the account. Plus, as the account was no longer active it was difficult for it to match your details to the information it had in its system. Thankfully when I stepped in Lloyds found the payment, and a few days later the money was back in your NatWest account. You have now also repaid the £60 debt. I felt that Lloyds should have helped you sooner, instead of leaving you in the lurch and giving you conflicting information at a time of extreme distress. It explained that because of the different teams involved in locating and returning the money, the information you were given depended on which team you were talking to. Those teams were not linked up, which is also why you didn't get the return calls you were promised. Lloyds said: 'We're here to help customers during difficult moments and we're sincerely sorry the support we gave our customer was not at the level she rightly expected. We've returned her money and made a payment in recognition that our service wasn't good enough on this occasion.' It gave you £250 compensation and has told you about several charities that may be able to give you some extra support. You said: 'It's clear that this was resolved as a result of your intervention so I can't thank you enough.' • Read more money advice and tips on investing from our experts I work for a small business that sells memorabilia and over the past five years we have used a company called Bionic to manage our gas and electricity deals. When our contract is coming up for renewal, Bionic sends us quotes from suppliers and arranges the switch on our behalf. We had an email from Bionic last September telling us that our contract with British Gas was ending in May. We decided we would shop around and get our own quotes to see if we could get a better deal. I contacted Bionic online in September to say that we no longer needed its services. The agent said we should wait until the company had sent the next quote before opting out. When we got the quotes later that month, I got back in touch using its webchat service to confirm that we didn't want to go ahead with the renewal. I made it clear that we no longer wanted Bionic to act on our behalf and, based on this conversation, I assumed that our contract with the company had been terminated. A few months later I contacted British Gas to check when our energy deal ended, but was told that Bionic had already signed us up for another three-year deal with the company. We were not sent any information about this new deal and had given Bionic sufficient notice to terminate our contract, so we can't understand how this happened. I complained to Bionic but it said it had no record of the second webchat conversation in September where I had confirmed that we wanted to opt out. We have gone back and forth with Bionic to try and get it to cancel this contract that we never agreed to, but to no Lancashire • Compare exchange rates with our currency converter Bionic told me that it had sent you an email to confirm the new contract, but this was news to you and you said you never got the email. I was surprised that Bionic had signed you up to a three-year contract without you agreeing to it, but it explained that its digital renewal service is designed so that, unless a customer gets in touch to opt out, it assumes that they are happy with the quote and automatically signs them up. One Bionic email contained a quote and gave you three days to opt out. Once that deadline was reached, you were then locked into a contract and couldn't cancel. Three days seems like a very small window of time to opt out, which I imagine could catch out some people if they missed an email, yet Bionic said that suppliers can hold prices only for a short time. I also thought it was odd that Bionic finalised your contract eight months before your contract expired. It told me that it buys in bulk up to 12 months in advance and that, because of this, its customers get discounts on deals and are shielded from the price movements in the energy market. But regardless of this, you said you had made it clear that you wanted to cancel before the contract was finalised, so why didn't Bionic act on that? It showed me a transcript of the conversation on September 17 where you said you would like to cancel, but were urged to wait until the latest quotes had come through before confirming that you wanted to opt out. You said there was a subsequent webchat on September 26 where you had confirmed that you wished to cancel, but Bionic claimed it had no record of it. It also said that it has never lost a webchat and told me that it has 'complete and accurate records of all interactions'. • Online antique buyer lost my 91-year-old mum's treasures I could not work out why your version of events was different to Bionic's, but after I stepped in, it agreed to cancel your contract. Bionic said: 'Customers can choose to opt out of our digital renewal service at any time prior to finalisation of a replacement contract. As a gesture of goodwill and a demonstration of our commitment to ensuring customer satisfaction, we are prepared to arrange the cancellation of the replacement contract.' You have now arranged a contract directly with a supplier and said: 'This is the outcome that we wanted, but it is still very frustrating that we had to go through this ordeal in the first place. I believe this would not be resolved without your input, so thank you.' • £868,409 — the amount Your Money Matters has saved readers so far this year If you have a money problem you would like Katherine Denham to investigate email yourmoneymatters@ Please include a phone number
