Lloyds Bank has recently announced a significant change to the debit card benefits for Silver and Platinum account customers, with the new policy set to take effect on July 1. This change will allow customers to utilise their debit cards worldwide without incurring extra charges.
The decision to implement this change was made in response to the increasing demand for card spending overseas, as revealed by the bank’s debit card data. In the first quarter of 2024, spending on foreign currencies using Lloyds debit cards accounted for 45.7% of the total spending in 2023. Additionally, spending outside the UK made up 44.2% of the total spending in 2023.
Helen Bierton, everyday banking director at Lloyds Bank, articulated the bank’s motivation behind this new offering. She stated, “We’re giving our customers one less thing to think about when they’re travelling, by introducing free unlimited worldwide debit card usage, with our range of bank accounts that come with additional benefits. No more transferring money between different accounts or using multiple cards – customers can simply keep using their debit card as normal when they’re overseas, whether buying holiday treats or withdrawing cash.”
Bierton also highlighted the added benefits that come with Silver and Platinum accounts, such as European or worldwide family travel insurance. According to Lloyds Bank data, Euros and US Dollars are the most commonly used currencies for debit card transactions, accounting for 80% of all currencies bought. Spain, France, the USA, and Ireland were the top four countries for debit card spending outside of the UK. These countries collectively represented over three-fifths (62%) of total overseas debit card spending.
Furthermore, Lloyds Bank reported a decline in cash withdrawals abroad, as customers are increasingly relying on their debit cards. Cash withdrawals (excluding ATMs) decreased by 41% between 2019 and 2023, while debit card usage overall saw a 42% increase over the same period.
Commencing on July 1, 2024, Silver accounts will cost £11.50 per month, while Platinum accounts will cost £22.50 per month. Both accounts include valuable perks such as travel insurance (European and worldwide), AA family breakdown cover with roadside assistance, and mobile phone insurance.
In conclusion, Lloyds Bank’s decision to offer free unlimited worldwide debit card usage for Silver and Platinum account customers is a significant development that aims to provide greater convenience for customers traveling abroad. With the added benefits that come with these accounts, customers can now enjoy their travels without the hassle of additional fees or multiple cards.