Lloyds Bank is increasing fees for small business owners from next month, with the general account maintenance fee rising from £8.50 to £10 per month — an increase of £18 annually. The changes take effect from July 10 and apply to all existing business accounts from the July billing period, as well as new accounts opened before the deadline.
Cash and Cheque Fee Increases
The cost of paying in or withdrawing cash is also rising, from £1.50 per £100 to £1.60 per £100. This applies to transactions at branch counters, cash machines, Nightsafe, or through third parties like the Post Office. Additionally, the fee for paying in a cheque increases from £1 to £1.20. However, fees for cash deposited via Immediate Deposit Machines or Automated Deposit Machines remain at 85p per £100, and cheques deposited through these machines or the Business Mobile Banking app will also be charged at 85p each.
Scrapping of Electronic Payment Fees
In a move to offset some of the increases, Lloyds is eliminating fees for electronic payments made through its Online for Business platform. Previously, the bank charged 20p per transaction after the first 100 free payments, including direct debits, faster payment debits, standing orders, internet bulk payments, and online or Phonebank payments. This change aims to provide more predictable costs for businesses.
Exemptions and Context
The maintenance fee will not apply to pledged accounts. Lloyds provides banking services to nearly one million businesses across the UK. A Lloyds Bank spokesperson told The Sun: “Businesses want clear, straightforward banking that works for them, and we’re making changes to give customers more predictable costs that are easy to understand. Over one million businesses trust us with their finances and by simplifying everyday banking charges, we’re helping businesses better anticipate their costs and manage their finances with confidence.”
This fee hike follows a previous increase last year on the Club Lloyds package bank account, where the monthly fee rose from £3 to £5. That fee is waived if customers pay in £2,000 or more each month. Club Lloyds offers perks such as a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off certain food and drink brands, along with access to a monthly saver account paying 6.25% gross/AER on up to £400 per month and up to 15% cashback at selected retailers.
