Lloyds Bank has confirmed plans to overhaul one of its popular accounts in a blow to millions of customers.
The high street financial institution is set to increase the monthly fee for its Club Lloyds account from £3 to £5, starting June 2.
The change could cost customers who do not meet minimum deposit requirements an additional £24 per year.
Club Lloyds, which serves as a premium current account, offers lifestyle benefits, cashback rewards and access to preferential interest rates on linked savings accounts.
The fee increase marks the first change to Club Lloyds charges in over eight years.
The account continues to function like a standard current account, allowing customers to set up direct debits and standing orders whilst accessing additional perks.
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Lloyds Bank has announced a major change to one of its most popular accounts
GETTYDespite the fee increase, Lloyds Bank has announced plans to introduce new perks for Club Lloyds customers from April 14.
Account holders will no longer face foreign currency fees or cash withdrawal charges when using their debit cards abroad.
This benefit, previously exclusive to Silver and Platinum accounts, will become standard for all Club Lloyds customers. The bank is also enhancing its overdraft offering by doubling the interest-free allowance.
Customers will be able to borrow up to £100 without incurring daily interest charges, up from the current £50 threshold.
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GETTYThe monthly fee will continue to be waived for customers who deposit £2,000 or more into their account each month.
A Lloyds spokesperson said: "Our Club Lloyds range offers our customers lifestyle benefits including Disney+, cinema tickets, and magazine subscriptions, and access to market leading mortgage and savings rates.
"From April 14, customers will be able to spend on debit card abroad without any fees. Almost 90 per cent of our customers get these benefits for free each month."
The bank's range of lifestyle benefits remains unchanged, with customers continuing to enjoy various entertainment perks.
It should be noted that these fee changes will also impact Club Lloyds Silver and Platinum account holders.
These customers pay the standard Club Lloyds fee on top of their respective account charges.
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PASilver account holders currently pay £11.50 monthly, while Platinum customers are charged £22.50.
Both premium accounts saw a £1.50 monthly increase in July last year.
This previous adjustment raised Silver account fees from £10 to £11.50 and Platinum fees from £21 to £22.50.
From June, these customers will face the additional £2 increase in their Club Lloyds fee component.
