Lloyd's withdrawing free accounts for community groups

ActingTreasurer

As a community group with limited banking needs we have been able to obtain free banking from the major high st banks for many years, for a long time with Nat West and now with Lloyds. But having switched to Lloyds on the basis of a free current account 2 years ago for an updated online account (needed after all banks closed their local branches) we have now received notice from Lloyds that they will introduce a standing charge from January 2025. They have provided no justification for this new charge and indeed the cost of their service must have reduced significantly with the substantial branch closures of recent years. The behaviour of the bank appears underhand and grasping. Is anyone else being troubled by this?

wmb194

ActingTreasurer said:

As a community group with limited banking needs we have been able to obtain free banking from the major high st banks for many years, for a long time with Nat West and now with Lloyds. But having switched to Lloyds on the basis of a free current account 2 years ago for an updated online account (needed after all banks closed their local branches) we have now received notice from Lloyds that they will introduce a standing charge from January 2025. They have provided no justification for this new charge and indeed the cost of their service must have reduced significantly with the substantial branch closures of recent years. The behaviour of the bank appears underhand and grasping. Is anyone else being troubled by this?

What's the charge?

Stitcher40

Today there has been a change on free banking for clubs and societies.This free account has been changed to a community account.  Now with a £4.35 pm cost plus extra charges.  I googled for free banking for clubs and societies, and it comes up, but it is not available.  Similarly HSBC and Barclays offer free banking, but know they are not free. So going to close my 3 accounts, which work on. A break even basis, and find a way around it. Turnover was less than£1000 pa, with very few transactions.  This sort of policy will lead to clubs using personal accounts, which is not the way to go.  Or keeping money in a box under the bed!

And having taken the money out before 31 December, then have to get a form signed and sent in by post!

penners324

Barclays & Metro offer fee free community accounts

Eco_Miser

Virgin Money offer free club and association accounts, provided you have less than 10 transactions a month.

TheBanker

ActingTreasurer said:

As a community group with limited banking needs we have been able to obtain free banking from the major high st banks for many years, for a long time with Nat West and now with Lloyds. But having switched to Lloyds on the basis of a free current account 2 years ago for an updated online account (needed after all banks closed their local branches) we have now received notice from Lloyds that they will introduce a standing charge from January 2025. They have provided no justification for this new charge and indeed the cost of their service must have reduced significantly with the substantial branch closures of recent years. The behaviour of the bank appears underhand and grasping. Is anyone else being troubled by this?

It is not underhand - they are giving you proper notice of the change. The bank is not obliged to justify their charges, but if they were I expect they would say that these accounts cost the banks money to operate, they are generally not profitable due to low balances and there isn't the same opportunity to cross-sell other products as there is with personal banking services. It does not follow that closing the branch means lower costs, given the costs associated with ensuring compliance with Financial Crime and Money Laundering regulations will have increased over the same period.

I understand that NatWest offer free banking to community organisations, provided that one of the parties has a personal banking relationship with them. Is a switch back to NatWest an option? I believe you can use the Post Office for cash/cheque deposits if there isn't a convenient branch any more.

penners324

I recommend writing to the press and your MP.

It's the only way to shame the banks into continuing to operate fee free accounts for Community organisations.

HSBC did this 4 years ago, now Lloyds....

TheBanker

penners324 said:

I recommend writing to the press and your MP.

It's the only way to shame the banks into continuing to operate fee free accounts for Community organisations.

HSBC did this 4 years ago, now Lloyds....

May I ask why you think these accounts should be free? They cost the bank money to operate. 

retiredbanker1

.....And they were a bu**er  to run - normally elderly signatories who died but other signatories did not inform bank etc then find they cannot access account due to not having sufficient signatories on the account - the mandate they gave the bank-- rant over!
Here's to an increased dividend in 2025.

Banoose

Our Science group has a community account with Lloyds. We, also, will be looking for an alternative . The bank have our money. I presume they invest it . Now they want to charge us too ! We generally only make payments to charities from it once or twice a year. 

We gain no interest from their holding our money. Soon it will all be digital and our ability to choose anything related to finance will be gone . 

Where to put that money? 

Many will be asking the same question . Generally we have fallen into the trap of digital . 

penners324

TheBanker said:

penners324 said:

I recommend writing to the press and your MP.

It's the only way to shame the banks into continuing to operate fee free accounts for Community organisations.

HSBC did this 4 years ago, now Lloyds....

May I ask why you think these accounts should be free? They cost the bank money to operate. 

Why shouldn't banks operate free accounts for charities & Community groups?

All the hard work these organisations do in the community should not be degraded by banks unseemly profits. The banks make plenty of fees from big businesses