Four big bank account changes coming in weeks – including fee hike and freebies

MAJOR banks are making huge changes to their fees, freebies and credit card services in the next few weeks.

For instance, Metro Bank is to stop offering credit card services for retail customers.

A number of bank account changes are on the way in the coming weeksCredit: Getty

Meanwhile, Barclays is to axe its £175 switching offer within days.

Here are all the key changes you need to know about, and we explain what they mean for you.

Barclays

£175 free cash offer pulled

Barclays is ending its £175 free cash switching deal on Friday, August 30.

If you use the Barclays app to switch the bank by that date, you could be in line for £175.

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The sign-up bonus is promised to be paid within 28 days if customers follow a four-step process.

The first of those is to open an eligible current account - that's either the Barclays Bank Account or Premier Current Account - others are not included.

If you opt for the Barclays Bank Account, you can then need to sign up to Blue Rewards in the Barclays app.

There is a £5 monthly fee for Blue Rewards - but in return Apple TV is provided along with an MLS season pass subscription for those keen on American footie.

It also includes 15 per cent cashback with participating retailers - including Greene King pubs, Domino's and Deliveroo - as well as up to 5 per cent interest on savings with a Rainy Day Saver account.

The third step is to use the current account switch service in the Barclays App to complete the transfer - and add two direct debits.

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The final step is to pay £800 into the account by August 30.

Those who already have a Barclays current account open are ineligible for the offer.

Although the offer is enticing, it always pays to read through the full terms and conditions and ensure the available accounts match your banking needs.

Axing loyalty reward

Barclays Blue Rewards customers have previously paid £5 per month in return for access to high-interest savings accounts and cashback.

How do I switch bank accounts?

SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.

Under the switching service, swapping banks should take seven working days.

You don't have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.

But they also received £5 per month back for having two or more direct debits.

The bank has now emailed customers to say that from September 4 it is removing the £5 monthly loyalty reward.

Barclays said that, following the change, Blue Rewards customers can receive fixed benefits worth up to £44 per month – an increase from £35.50 previously.

As part of the switch up, customers will now be able to access an Apple TV+ subscription and watch Major League Soccer matches with an MLS season pass subscription during the season, in addition to getting cashback and interest on savings.

The bank said it will undertake reviews to ensure Blue Rewards customers are getting fair value for their £5 monthly fee.

In cases where customers are not receiving fair value, they will be alerted and Blue Rewards and its fee will be removed, leaving customers on Barclays’ standard, fee-free account, it said.

Metro Bank

Charges for spending abroad

Metro Bank is set to introduce a 2.99% fee on all debit card transactions made outside the UK from August 29 - including in Europe, which is currently free.

And customers withdrawing cash from their bank account anywhere abroad will pay the 2.99% fee plus an additional £1.50 ATM fee.

Metro Bank, which has around 3million customers, currently allows them to spend on their debit cards and make cash withdrawals in a foreign currency in Europe free of charge.

While a 2.99% fee may not sound like much, the charges can quickly rack up as the fee is applied to every individual transaction.

For example, if you spend £20 on your card, you will pay 60p in fees.

So, if you make five £20 transactions, you'll have spent an extra £3 in fees.

And if you withdraw cash from an ATM, the charges are even higher.

By withdrawing £100 worth of foreign currency, you would incur a £2.99 charge, plus the additional £1.50 withdrawal fee.

This means you would pay an extra £4.49 for taking out £100.

Credit card to be axed

Metro Bank will stop offering credit card services for retail customers in September.

New customers can no longer apply for the bank's personal credit card, which has no fee and a single 18.9% interest rate.

All existing credit cards will stop working from September 10.

This means that you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted.

Metro Bank's business credit cards and all overdraft offers will be unaffected.

It means that customers will need to find another credit card provider to continue to make purchases in this way.

If you still have an outstanding balance on your card after this date, you can continue to make repayments as usual - there's not time limit on repaying the debt.

Once you've repaid your balance in full and it's at £0, Metro Bank will then close your account and write to you to confirm this.

You won't be forced to pay off your debt in full.

The bank says that all repayment options will continue to be available to affected customers.