Lloyds, Santander, Barclays make 'major' changes for millions of customers this month

Major high street banks, including Barclays and Santander, have announced significant changes that could impact millions of customers. These alterations could affect current account holders, credit card users, and some mortgage customers.

It's advisable to review these updates to determine if they will affect you, as they will alter the bank's minimum repayments and interest accrued on debt. If you're dissatisfied with any changes, it might be time to switch banks and take advantage of the numerous switching offers available to consumers.

Some of the largest changes to retail banking will be for customers at Barclays, where cuts to minimum repayments could see your debt grow, or at NatWest, where those with premium accounts are set to see higher fees just for keeping their bank account open, reports the Mirror.

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You do not have to stay with one bank just because you have been with them awhile, finding the one that best suits your finances is more important. Currently, you can even earn up to £175 just by switching to certain banks, but always ensure you read the terms and conditions first to confirm your eligibility.

Barclays

Barclaycard is reducing minimum repayments for credit card customers. This means you'll likely repay less each month, but you could end up being in debt for a longer period and pay significantly more in interest.

Currently, you pay the highest of 3.75 per cent of your balance, 2.5 per cent of your balance plus interest, or £5.

This applies to most Barclaycards, including Avios, Platinum, and Rewards. However, from July 22, this will decrease to the highest of one per cent of your balance, one per cent of your balance plus interest, or £5.

If you have a 0 per cent interest card, which is the cheapest way to repay credit card debt, you won't be affected.

Lloyds

Lloyds Banking Group, which includes Lloyds, Halifax, and Bank of Scotland, is altering the interest rate fees it charges on its overdrafts. The two standard rates that most customers are charged when they fall into their overdraft are currently 39.9 per cent and 49.9 per cent.

For those who pay £3 a month for a Club Lloyds Bank account, there is a lower overdraft fee of 27.5 per cent. However, from August, the banking group will introduce two additional overdraft rates of 19.9 per cent and 29.9 per cent.

This means that some customers will pay less for their overdraft, while others will pay more. The rate you're charged will depend on your credit history and how you use your account. The standard rate will be 39.9 per cent.

There will also be two temporary six-month rates of 34.9 per cent and 44.9 per cent, which will then increase to 39.9 per cent and 49.9 per cent. From July 1, Lloyds Bank customers with silver and platinum accounts will be able to use their cards abroad without incurring any international charges.

Nationwide

Nationwide has begun distributing its latest £100 Fairer Share bonus payment to nearly 3.9 million customers. To qualify for this payment, you must have a current account with Nationwide, as well as a mortgage or savings account.

You should receive the money by June 28. Nationwide has also confirmed a £200 member-only switching incentive today, along with a new Member Exclusive Bond for all existing members, offering a rate of 5.5 per cent AER/gross (fixed) for 18 months.

NatWest

NatWest is set to hike the monthly charges on some of its packaged bank accounts. Customers with the Reward Black account will see their fees rise from £31 to £36 a month starting June 28.

Additionally, the monthly fee for the Reward Platinum account will increase from £20 to £22.

However, the monthly fee for the NatWest Reward Silver account will stay at £10, and the £2 monthly charge for the NatWest Reward account remains unchanged. On a less positive note, NatWest is also reducing the time frame in which mortgage borrowers can secure a new rate before their current deal ends, cutting it down from six months to four.

Santander

Santander is making a similar move by shortening the period for securing a new mortgage deal from six months before your current mortgage ends to four months.

According to Martin Lewis' MoneySavingExpert.com, this change means that borrowers will have less time to shop around for a better rate before their existing mortgage expires.

Other major banks, including Barclays, Halifax, HSBC, Lloyds, and NatWest, still offer the option to lock in a new mortgage rate six months in advance.

Metro Bank

From July 8, Metro Bank is set to alter the interest rate on some of its variable savings accounts. This change will impact those who opened limited edition instant access accounts or instant cash ISAs between November 10, 2023 and February 12, 2024.

These accounts currently offer interest rates of 5.22 per cent, 4.97 per cent, 4.51 per cent, or 4.01 per cent. However, these rates will decrease to 3.95 per cent from July 8.