Lloyds TSB Bank

June 18, 2012 06:39 ET

Lloyds TSB to Introduce New Interest and Fee-Free Planned Overdrafts to Help Customers Avoid Charges

LONDON, UNITED KINGDOM--(Marketwire - June 18, 2012) - Lloyds TSB is set to introduce or increase interest and fee-free amounts on planned overdrafts across its range of mainstream current accountsi. Therefore, customers could avoid incurring any charges should they dip into their planned overdraft at any point in the month.

With effect from 2 October 2012, subject to application and approval, customers can benefit from:

- The introduction of an interest and fee-free planned overdraft amount of £25 on the Classic account, which has no monthly account fee

- The introduction of an interest and fee-free planned overdraft amount of £50 on the Silver account

- An increased interest and fee-free planned overdraft amount of £150 on the Gold account (currently £100)

- An increased interest and fee-free planned overdraft amount of £300 on the Platinum account (currently £250)

Lloyds TSB and Bank of Scotland will be the only major high street banks to offer an interest and fee-free planned overdraft amount across their full range of mainstream current accountsii.

With effect from 2 October 2012, Lloyds TSB will also be increasing overdraft interest rates and the monthly overdraft usage feeiii across its range of free and paid-for current accounts for customers who exceed their interest and fee-free facility.

Jatin Patel, director of current accounts for Lloyds TSB, said:

"Lloyds TSB already offers a variety of benefits for current account customers, such as a competitive credit interest rate of up to 3% AER through Vantage and a number of added value services on our Added Value Accounts. With the introduction of interest and fee-free overdraft facilities across our whole range of mainstream current accounts, all customers can now also enjoy peace of mind that should they dip into their planned overdraft in the month they can avoid incurring charges. This is another of a series of free tools we have introduced on our current accounts to help customers manage their finances and avoid incurring fees."

Additional free tools provided by Lloyds TSB to enable customers to manage their finances and avoid incurring fees include:

- Text alerts to advise customers when they are getting close to their overdraft limit

- Money Manager - an online service which provides guidance to customers on how they are spending their money

- A free mobile banking app which provides customers with the ability to manage their money on the go.

(i) Excluding the Premier account, which continues to offer customers a £500 interest and fee-free Planned Overdraft (subject to application and approval).
(ii) The interest and fee-free overdraft amount is in addition to the £10 buffer Lloyds TSB offer on all current accounts. The buffer means that customers who slip into a planned or unplanned overdraft by £10 or less can avoid charges. If they go over the buffer they will be charged on the full amount. By contrast, interest and fee-free overdrafts mean that customers will only ever be charged on amounts above the interest and fee free limit.
(iii)


Monthly fee Current overdraft interest rate
(% EAR)
New overdraft interest rate
from 02.10.12 (%EAR)
Classic Free 19.28 19.94
Select £8.95 18.86 19.94
Silver £9.95 18.86 19.94
Gold £12.95 17.32 19.94
Platinum £17.00 14.28 17.28
Premier £25.00 12.43 15.43
* EAR is the Equivalent Annual Rate. This is the actual annual rate of an overdraft. It does not take into account other fees and charges.
Current fee Fee from 02.10.12
Monthly overdraft
usage fee
£5 £6

Customers are not charged for setting up a Planned Overdraft and will only pay overdraft fees and interest if they use an overdraft. All overdrafts are subject to application and approval.

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