Full list of five banking changes coming before the end of the year – including Nationwide account charge hike --[Reported by Umva mag]

FIVE major banking changes are coming before the end of the year including account fee increases and savings rates dropping. Lloyds is pulling its £200 free cash switching offer in December and M&S is making some big credit card changes next month. Five major banking changes are coming before the end of the year Meanwhile, Nationwide is lowering interest rates on a number of its savings accounts while upping the fee for one of its packaged bank accounts. Here are all the key changes you need to know about, and what they mean for you. Lloyds free £200 cash switch offer ending Lloyds launched its latest switching offer last month, offering new and existing customers up to £200 free cash. You just have to open a Club Lloyds account and the money will be paid within three days of completing the switch. There is a £3 monthly fee to maintain the account, however this is waived if you pay in £2,000 or more each month. The Club Lloyds account also opens up a host of other perks, including a 12-month Disney+ subscription, Odeon or Vue tickets and a magazine subscription. Anyone looking to snap up the cash bonus will have to act soon though – Lloyds said customers have to switch between October 2 and December 10. Nationwide Flex Plus account charge Nationwide is hiking the fee on its popular FlexPlus packaged bank account from December. The account comes with a number of perks including worldwide travel insurance, breakdown cover and preferential rates on loans and overdrafts. It also comes with mobile phone insurance and account holders can use their debit card abroad without having to pay non-sterling transaction fees. Currently, FlexPlus customers pay £13 a month or £156 a year for the benefits. However, from December 1, the FlexPlus monthly fee will rise by £5 a month to £18 a month – or £216 a year. This represents a £60 a year increase compared to the current fee charged for the product. Nationwide cutting savings rates Nationwide is cutting interest rates on a host of its savings account from next month. The building society is slashing rates across the board after the Bank of England dropped the base rate from 5.25% to 5% in August. The base rate is the rate charged to high street banks which is then reflected in mortgage and savings rates. Nationwide has said it will cut rates on 24 of its savings accounts by up to 0.20 percentage points. Tom Riley, Nationwide’s director of retail products, said the building society had “worked hard to limit the impact of the recent rate cut on our savers”. Base rate (predicted) to fall Economists are predicting the BoE will cut the base rate at its next meeting in November. The Monetary Policy Committee (MPC), which sets the base rate, will also meet in December. The BoE cut interest rates to 5% in August for the first time since 2020 but has held them steady since. However, with inflation being held in check, Governor of the BoE Andrew Bailey has hinted it could be “more aggressive” in cutting rates. Any drop in the base rate spells good news for mortgage holders who will see home loan rates fall. However, it also leads to interest rates on savings accounts falling. M&S credit card changes M&S Bank is shaking up its Club Rewards scheme for credit card holders within weeks. The scheme charges customers £10 a month and opens up a host of perks including free next-day delivery and rewards points earned when using your credit card abroad. But from November 13 these perks will be ditched and instead customers will be issued more M&S vouchers. In an email sent to customers on October 10, M&S said it was increasing the amount of vouchers shoppers get from £65 to £120 a year following customer feedback. Customers will also continue to earn two rewards points for every £1 spent, it said. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website. Under the switching service, swapping banks should take seven working days. You don’t have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0%

Oct 10, 2024 - 14:56

Full list of five banking changes coming before the end of the year – including Nationwide account charge hike --[Reported by Umva mag]

FIVE major banking changes are coming before the end of the year including account fee increases and savings rates dropping.

Lloyds is pulling its £200 free cash switching offer in December and M&S is making some big credit card changes next month.

A number of bank account changes are on the way in the coming weeks — Five major banking changes are coming before the end of the year

Meanwhile, Nationwide is lowering interest rates on a number of its savings accounts while upping the fee for one of its packaged bank accounts.

Here are all the key changes you need to know about, and what they mean for you.

Lloyds free £200 cash switch offer ending

Lloyds launched its latest switching offer last month, offering new and existing customers up to £200 free cash.

You just have to open a Club Lloyds account and the money will be paid within three days of completing the switch.

There is a £3 monthly fee to maintain the account, however this is waived if you pay in £2,000 or more each month.

The Club Lloyds account also opens up a host of other perks, including a 12-month Disney+ subscription, Odeon or Vue tickets and a magazine subscription.

Anyone looking to snap up the cash bonus will have to act soon though – Lloyds said customers have to switch between October 2 and December 10.

Nationwide Flex Plus account charge

Nationwide is hiking the fee on its popular FlexPlus packaged bank account from December.

The account comes with a number of perks including worldwide travel insurance, breakdown cover and preferential rates on loans and overdrafts.

It also comes with mobile phone insurance and account holders can use their debit card abroad without having to pay non-sterling transaction fees.

Currently, FlexPlus customers pay £13 a month or £156 a year for the benefits.

However, from December 1, the FlexPlus monthly fee will rise by £5 a month to £18 a month – or £216 a year.

This represents a £60 a year increase compared to the current fee charged for the product.

Nationwide cutting savings rates

Nationwide is cutting interest rates on a host of its savings account from next month.

The building society is slashing rates across the board after the Bank of England dropped the base rate from 5.25% to 5% in August.

The base rate is the rate charged to high street banks which is then reflected in mortgage and savings rates.

Nationwide has said it will cut rates on 24 of its savings accounts by up to 0.20 percentage points.

Tom Riley, Nationwide’s director of retail products, said the building society had “worked hard to limit the impact of the recent rate cut on our savers”.

Base rate (predicted) to fall

Economists are predicting the BoE will cut the base rate at its next meeting in November.

The Monetary Policy Committee (MPC), which sets the base rate, will also meet in December.

The BoE cut interest rates to 5% in August for the first time since 2020 but has held them steady since.

However, with inflation being held in check, Governor of the BoE Andrew Bailey has hinted it could be “more aggressive” in cutting rates.

Any drop in the base rate spells good news for mortgage holders who will see home loan rates fall.

However, it also leads to interest rates on savings accounts falling.

M&S credit card changes

M&S Bank is shaking up its Club Rewards scheme for credit card holders within weeks.

The scheme charges customers £10 a month and opens up a host of perks including free next-day delivery and rewards points earned when using your credit card abroad.

But from November 13 these perks will be ditched and instead customers will be issued more M&S vouchers.

In an email sent to customers on October 10, M&S said it was increasing the amount of vouchers shoppers get from £65 to £120 a year following customer feedback.

Customers will also continue to earn two rewards points for every £1 spent, it said.

How do I switch bank accounts?

SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.

Under the switching service, swapping banks should take seven working days.

You don’t have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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