With the launch of TSB Bank due later this year, Which? looks at what this will mean for the 5 million Lloyds Banking Group customers that are set to be switched.
Customers that will be switched to the new TSB Bank, along with those whose accounts will remain with Lloyds, should have been contacted by now.
Here we outline what the changes will mean for you. However, anyone who wants to change to another bank, rather than TSB, can do so using our guide to switching your bank account.
My bank account is being switched from Lloyds to TSB Bank. What do I need to know?
Lloyds says the majority of customers being transferred will retain their account numbers and sort codes, while they can still use in-branch, cash machine, internet and telephone banking services.
As a result, you shouldn’t need to change any direct debits, standing orders or PINs while fees, charges and interest rates are set to remain the same.
There will be some changes to the terms and conditions for current accounts, savings accounts and credit cards, though, but no branches are set for closure as part of the transfer and staff are set to keep their jobs.
Will I still be able to use my local branch to do my banking?
Once the changes have gone through, customers being switched to TSB Bank will no longer be able to manage their account, such as paying in a cheque, in a branch that is remaining a Lloyds.
My bank account is staying with Lloyds. How will these changes affect me?
The number of branches you can use will be reduced and if the branch you normally use is moving to TSB, you won’t be able to use it for in-branch services, such as paying in a cheque into your bank account.
I’m with C&G so how will these changes affect me?
While most mortgages and savings accounts are being switched over from Cheltenham and Gloucester branches, customers are being told they will not see any change to interest rates or repayments.
Can I opt out of the move from Lloyds to TSB Bank?
If you want to remain with Lloyds you will need to reapply for a new current account. Call 0800 028 0428 to discuss your options.
When are all of the changes happening?
Over the summer, branches and accounts included in the transfer will be renamed in TSB Bank’s name. The full transfer is due to be complete by the end of 2013.
Why is this happening?
The changes follow a ruling by the European Commission (EC) in 2009 which aims to increase competition and customer choice in the UK banking sector through the creation of a new bank.
In April, the Co-operative Bank pulled out of its planned purchase of 282 Lloyds TSB branches in England and Wales, 185 Lloyds TSB Scotland branches, as well as 164 former Cheltenham and Gloucester branches and most of its savings accounts and mortgages.
As a result, Lloyds is now going to sell all of those branches to the new standalone TSB Bank through a stock market listing.
Finding the best current account
If you are looking to switch current account, make sure you choose the best bank account for you depending on your circumstances and needs:
- Best bank accounts for credit interest – we show the best deals for current accounts that pay interest for customers that stay in credit.
- Best bank accounts for authorised overdrafts – we show the best deal for customers that go in to the red each month.
- Fee-charging bank accounts – we rate packed current accounts on the market, showing the key benefits that they include and how much they cost over a year.