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Lloyds launches new current account

Someone using a cash machine31/3/14

By Sarah Tawton

Lloyds has launched a new current account which offers customers an interest rate of 4%, along with a range of other perks.

The Club Lloyds account will pay a tiered interest rate of up to 4% on balances up to £5,000.

The move will increase competition in the current account market, as banks bid to offer more attractive returns to savers.

Lloyds said the new account would be available for "free" to new and existing customers who use it as their main current account, if they pay in £1,500 a month and set up two direct debits.

Earn 4% interest on balances of £4,000 - £5,000

Those who do not meet these requirements can still get the current account, but will have to pay in £5 a month.

Customers will receive 1% interest on balances of up to £1,999.99, with the interest rate rising to 2% for balances between £2,000 and £3,999.99.

An interest rate of 4% will be available for those with balances of £4,000 to £5,000.

Account holders will also have access to a monthly savings account, which will pay 4% interest on savings of up to £400 a month.

They will also be able to take advantage of a mortgage rate reduction of 0.2% and a range of "lifestyle benefits".

'Everyday offers' rewards scheme

These include cinema tickets, an annual magazine subscription or access to discounts at more than 6,000 restaurants with an annual Gourmet Society membership.

Under the bank's "everyday offers" rewards scheme, customers can get up to 15% cashback on their everyday spending.

The new current account has a £100 interest-free overdraft buffer, after which the borrowing rate is 19.94%.

Meanwhile, Lloyds also confirmed plans to put its paid-for packaged accounts back on sale in branches.

The accounts have remained available online but have not been sold in branches for just over 12 months.

Packaged accounts go back on sale from Monday

Lloyds said it took them off sale in order to bring the way it sells them into line with its sister bank, Halifax.

It said the move was unrelated to efforts by regulators to clamp down on the sale of packaged accounts, amid fears that some customers were being sold unsuitable products.

Lloyds' silver account charges £9.95 a month, while its platinum account is available for £17.

The accounts will go back on sale in branches from Monday, when the new Club Lloyds current account launches.


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