Martin Lewis issues warning to Lloyds Bank customers who earn under £30,000

Martin Lewis has issued a warning to Lloyds Bank customers over how much you need to pay into an account to make a free £200 switch offer worthwile. The BBC Sounds podcast host discussed the T&Cs of Lloyds Bank's switch offer on this week's ITV The Martin Lewis Money Show.

Martin said: “To switch, you need to use the bank’s 7-day easy switching service which will close your old account for you, it will auto forward any payments to that account, it will move across any direct debits, and standing orders.

“The highest up front cash if you want the cash straight away is from Club Lloyds, it also gives you a year’s Disney Plus. Many banks want you to do a minimum monthly payment…which is their way of effectively saying they want salary going in.

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“So you convert it into salary. So with Natwest it’s £1,250 a month which is equivalent to a £16,000 salary before tax, Lloyds is the one to watch. It's £2,000 a month, which is equivalent to a nearly £30,000 a year salary, which not surprisingly will leave a few people out.

“If you’ve got less it charges you a monthly fee.” As well as the upfront switch cash, with Club Lloyds you can choose a reward each year including: 12 months' Disney+ (with ads), six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine.

On the Money Saving Expert website, Mr Lewis' team warn: "Do note there's a £3/month fee unless you pay in £2,000+ a month.You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £150/year interest). Plus, there's a 0% overdraft on up to £50.

"You can bag the free switch cash with some other accounts too, including the Club Lloyds Silver account, one of our top-pick packaged accounts which gives a range of insurance for £11.50/month." Speaking during his Martin Lewis Money Show Live Christmas special, Martin said: “If you love your bank… then stick with it. I wouldn't tell you to leave. If not, then so many banks are willing to pay you.” He added: “It's a good way to make free cash and get it in time for Christmas.”