Martin Lewis has issued a warning for Lloyds Bank customers regarding stricter monitoring of accounts. The banking group confirmed it checks customer accounts, particularly for those holding Premier accounts.
Bonus Offers and Requirements
The issue arose after Mr Lewis was questioned on his BBC podcast about one of Lloyds' bonus payment deals. The bank is offering two cash rewards for switching current accounts, with only days left to take advantage. One bonus is a £500 payment for switching to a new Lloyds Premier account.
However, the account comes with significant requirements: customers must deposit at least £5,000 monthly or hold a minimum of £100,000 in savings or investments with Lloyds. A podcast listener asked Mr Lewis about a potential loophole—whether paying in £1,000 and repeatedly withdrawing and re-depositing it five times would meet the £5,000 requirement.
Loophole Unlikely to Succeed
Mr Lewis explained that Premier accounts are designed for high earners and that banks have stricter processes and monitoring. He said: "Premier accounts are designed and designated for high earners. They tend to have stricter processes and stricter monitoring, so it's much more difficult." He added that the bank would likely detect the repeated deposit strategy quickly.
"I think they would spot it relatively quickly and within a few months, they would get in touch and say I don't think this is the right account for you," Mr Lewis said. He noted that the bank might ask for the £500 bonus to be repaid if the customer was found ineligible.
Lloyds Confirms Monitoring
Lloyds Bank confirmed that when applying for a Premier account, applicants must agree to either deposit £5,000 monthly or hold £100,000 in savings or investments. The bank does monitor how customers use their accounts. If it determines an account is unsuitable, it will contact the customer to discuss alternatives.
Additionally, Lloyds is offering £200 for switching to a new Club Lloyds account. For both offers, accounts must be opened online, in branch, or by phone by April 30 to qualify.
