Lloyds to axe popular bank account in HOURS – meaning thousands will lose vital £50 perk

LLOYDS Bank is scrapping its Select account within hours, with thousands of customers set to lose a handy £50 perk for good. From Friday, July 31, all existing Select accounts will automatically be converted into Classic accounts. The switch means customers will lose the £50 interest-free arranged overdraft buffer that came as standard with the Select account. Until now, Select customers who dipped into their arranged overdraft by up to £50 paid absolutely nothing in interest. Sign up for the Money newsletter Thank you! But once the account becomes a Classic account, that safety net vanishes, and daily interest will be charged on any arranged overdraft borrowing from the very first pound. Lloyds explains on its website: “From July 31 2026, we are changing the Select account to a Classic account. “The Classic account doesn’t offer a £50 interest-free amount on arranged overdrafts and daily interest will be charged on any arranged overdraft borrowing.” The Select account previously cost £9 a month and came with extra perks including AA breakdown family cover and worldwide mobile phone insurance. It is understood Lloyds has already written to affected customers to warn them of the change ahead of the deadline. The move follows Lloyds axing the same £50 interest-free perk from its Silver, Gold and Platinum packaged accounts back in June this year. Most read in Money But not everyone banking with Lloyds has been hit, as Club Lloyds customers still benefit from a more generous £100 interest-free buffer. Anyone who regularly relies on their overdraft, even for small amounts, is being urged to check their account now and plan ahead before charges kick in. Comment now