SHAKE UP
Major bank to ditch £5 loyalty reward as part of huge ‘makeover’ for millions of customers
Customers have slammed the decision as "disappointing"
A MAJOR bank is to axe a loyalty reward for millions of customers as it gives its scheme a huge "makeover".
Barclays Blue Rewards customers have previously paid £5 per month in return for access to high-interest savings accounts and cashback.
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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.
One Barclays current account customer described the move as disappointing”, adding: “This felt like a real benefit as a Barclays customer and it’s frustrating that it will now cost money.
"It feels like a clever way of watering down the amount that I’m getting back from my savings.
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“It’s made me think that I could switch to a different bank that won’t charge me to get those rates.”
People can potentially become a Blue Rewards member if they pay at least £800 into a nominated account every month as well as the £5 fee.
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.
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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, the bank said.
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James Hyde, of Moneyfacts said: "The monthly cash reward payment to qualifying customers effectively paid for the cost of the Barclays Blue Rewards membership: with that guarantee of cash set to be removed, members may re-evaluate whether the deal is right for them.
"As is often the case with these membership products, the true financial implications of these changes will depend on how exhaustively individuals utilise the rewards available to them, and how much they invest in associated accounts each month."
Manuel Baldasano, head of customer and digital at Barclays UK, said: “We’ve been evolving Blue Rewards based on what we know our customers value and, with entertainment high on their wish list.
"Our refreshed Blue Rewards proposition, which sits alongside our fee-free account and premier banking, means that customers can choose what works best for them."
It comes after The Co-operative Bank will scap its Everyday Rewards scheme in May.
The Everyday Rewards scheme was a free programme for all Co-operative Bank current account customers.
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.
What do other banks offer?
Several other banks, including Santander, Chase, Halifax and NatWest, reward current account customers with up to £20 month in cashback.
Cashback accounts work by paying customers free cash if they prioritise using them as their main bank account.
The amount you'll get back could be calculated as a percentage of what you spend on bills, or be fixed and require that you make a certain number of purchases or pay out several different direct debits.
With Santander Edge, account holders can get 1% back on their water, energy, council tax, mobile, phone, broadband and paid-for TV bills, as well as 1% on most supermarket and travel spending.
This means customers can earn up to £10 a month for each, or a maximum of £20 a month.
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But the exact amount of cashback you'll earn will depend on how much each of your bills are.
New Chase customers get 1% cashback (capped at £15 a month) on almost all spending for their first 12 months.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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