Martin Lewis' MSE warns Barclays customers to 'ditch' bank account

Martin Lewis' Money Saving Expert has issued a "ditch it" warning to Barclays customers. Barclays is overhauling its 'Blue Rewards' loyalty scheme for 100,000s of customers by scrapping monthly cash payments and adding Apple TV+ instead.

Customers can get a £5 monthly reward for paying out two or more Direct Debits on your current account, plus £5 for life insurance with critical illness, £3 for a mortgage, £1.50 for life insurance without critical illness and £1 for a loan.

MSE explained: "If you currently get the £5 current account cash reward, it means you're effectively getting Blue Rewards for free – as the £5 reward cancels out the £5 fee. But this will no longer be the case from 4 September 2024, as you'll still have to pay the fee but won't get a cash reward to cover it. So you'll be paying £60 a year for Blue Rewards – and this is unlikely to be worth it for most people."

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James Hyde, from Moneyfactscompare.co.uk, said: "The monthly cash reward payment to qualifying customers effectively paid for the cost of the Barclays Blue Rewards membership: with that guarantee of cash set to be removed, members may re-evaluate whether the deal is right for them."

A current Barclays customer said: "This felt like a real benefit as a Barclays customer and it's frustrating that it will now cost money. It feels like a clever way of watering down the amount that I'm getting back from my savings."

They also considered switching banks, stating: "It's made me think that I could switch to a different bank that won't charge me to get those rates." James added: "The benefits of Apple TV and (an) MLS season pass may be tempting for some, while up to 15% cashback is available when the debit card is used at selected retailers.

"As is often the case with these membership products, the true financial implications of these changes will depend on how exhaustively individuals utilise the rewards available to them, and how much they invest in associated accounts each month."