Lloyds Bank is stepping up its drive to attract affluent customers, with the launch of a new account aimed at people with income or assets of more than £100,000.
The bank’s offer of an account combining financial perks with “premium lifestyle services” is part of moves to grow its presence in this part of the market.
The Lloyds Premier account offers GP and wellbeing services, lifestyle benefits, travel perks, cashback, discounted mortgage rates and appointments with financial coaches, among its benefits.
The perks include a Bupa family GP and wellbeing subscription service, providing remote access to a range of services; a 0.2 percentage point discount on new homeowner mortgages and remortgage rates and 1% cashback on eligible debit card spending, up to £10 per month.
Customers can also receive 1.50% AER (annual equivalent rate) variable credit interest on balances between £1 and £3,999.99 and 3.00% AER variable credit interest on any part of the balance between £4,000 and £5,000, subject to terms and conditions.
The account will also offer customers “ready-made investment portfolios with zero management fees for the first year”.
The deal also offers a “Premier planning hub” within the mobile app, offering tools such as a “net worth calculator” and “wealth forecasting”.
People can also access other perks such as fee-free spending abroad on debit cards, and cinema tickets.
Jo Harris, director of consumer relationships at Lloyds, said the account will “help empower” customers to reach their financial goals.
“Lloyds Premier is a strategically important milestone in our growth ambitions for affluent customers – a part of the market where we have historically been under-represented.
“Our new Lloyds Premier account is the latest way we are delivering for our affluent customers, offering experience-led, tailored and personalised solutions in financial, health and lifestyle, while growing our presence in this part of the market.”
Under the Lloyds Premier criteria, customers must pay in £5,000 each month or have £100,000 of savings or qualifying investments with Lloyds Bank to be eligible for the account. A monthly fee of £15 will be refunded each month a customer meets the eligibility criteria.
Accounts are regularly reviewed, with customers contacted if they are not meeting the criteria, Lloyds said.
The bank estimates that customers will typically receive more than £100-worth of benefits per month, based on an account holder’s assumed average usage of benefits.
Caitlyn Eastell, a spokesperson at financial information website Moneyfactscompare.co.uk said: “It’s great to see Lloyds Bank launching an innovative account which can help consumers achieve their savings goals and effectively manage their lifestyle. Combining these perks into one account can pose as a massive timesaver and may entice customers with a busy daily schedule.
“However, it is imperative that consumers consider if the account is suitable for their needs to ensure they can get the best value and are not losing out on any of the best perks.”
Ms Eastell said that with many “lucrative ‘premier’ accounts, the terms and conditions can be quite restrictive so they should be reviewed carefully to ensure they qualify”.
She added that for current account customers more widely: “There are still a wealth of current accounts to choose from which can offer interest on balances or overdrafts. In any case, if customers are unsure which account may be best for them, they should seek independent advice.”
