18 August 2006
uSwitch, the price comparison and switching website, has commented on the of the forthcoming increase of Lloyds TSB Premier Banking account's monthly fee.
The move by Lloyds TSB will mean an increase of the account's monthly fee from £15 up to £25.
Nick White, head of personal finance at uSwitch, commented that the announcement by Lloyds to increase monthly charges by almost 70% was sure to meet with a frosty response from the most affluent customers.
He said: "Increasing the monthly fee on a packaged account from £15 to £25 seems excessive, particularly as the justification for the extra £120 per year is the addition of ID theft protection and home emergency cover.
"Lloyds make no secret of the fact that they have the largest market share in packaged accounts and this seems to be a successful money making exercise. With 100,000 customers currently using this account, Lloyds could be set to make an additional £1 million in January alone when the fee is applied.
"Add to this the extra money that will be made by not waiving the monthly fee for new customers and this account will become even more profitable for Lloyds."
Compare current accounts and find the best current account for you with the uSwitch.com's free comparison service.
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