High street bank Lloyds TSB has announced it will be increasing the monthly fee for its Premier Banking service to £25 for new customers from September 18th.
Existing subscribers to the service will have the fee raised from the current £15-a-month level to the new rate in January next year.
Analysts say the news is unlikely to be greeted with any fanfare by customers as the reasons behind the increases do not appear to justify the expense.
"Lloyds' announcement to increase the monthly charges on their Premier Banking account by almost 70 per cent is likely to get a frosty response from its most affluent customers," said Nick White, head of personal finance at financial comparison site uSwitch.com.
"Increasing the monthly fee on a packaged account from £15 to £25 seems excessive, particularly as the justification for the extra £120 per year is the addition of ID theft protection and home emergency cover."
Mr White also noted that Lloyds TSB has also raised the threshold for avoiding a monthly fee for the Premier Banking service to a £7,500 credit balance, 50 per cent higher than the previous level of £5,000.To read more about banking, click here.
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