Lloyds and Bank of Scotland Announce New Monthly Fees for Customers

In the UK, Lloyds and Bank of Scotland are planning to implement new charges for certain customer accounts starting January 14, 2025. This change will affect clubs and societies that currently enjoy fee-free banking through the "Treasurer's Account." Previously, these non-profit organizations could access banking services without incurring costs, allowing them to focus resources on community projects. Under the new system, organizations with annual turnovers below £249,999 will be moved to a new "Community Account" with a monthly fee of £4.25. Furthermore, there will be additional charges for electronic payments beyond a limit of 100, adding a 20p fee for each payment over the threshold. The evolution of these fees aligns with market trends, according to representatives of Lloyds Banking Group, although the full impact on affected customers has not been disclosed. Communication regarding these changes began in mid-October, well ahead of the implementation date to ensure transparency. Organizations in the lower turnover bracket will see annual fees total £51, while those in a higher turnover category will face charges of £102. Despite these changes, smaller charities relying on Treasurer's Accounts will still be able to apply and continue utilizing them as they exist currently, indicating a possible effort to maintain support for these organizations. The banks have paused applications for Treasurer's Accounts specifically for clubs and societies until the new frameworks are fully integrated. This step indicates a shift in the banking landscape, where traditional free banking options for non-profits are increasingly challenged by the need for banks to adapt to economic pressures and market conditions.