Lloyds Bank is limiting its services for expats and has told them that now they can keep only their existing accounts.
Expats who have An “eSavings” account will not be able to switch to a different savings account with Lloyds due to a clause that requires holders to have a British address.
The rate on the eSavings account will drop from 1% to 0.55% on October 28 but expats will not be allowed to change to any higher-paying accounts with Lloyds.
Lloyds brought in new rules last year which prevent anyone who is not a British resident from opening a savings account with it. Existing savings account holders, however, will to allowed to deposit money into their accounts.
The new rules also apply to opening current accounts.
The terms and conditions of the Club current account state: “To open the account you must be 18 or over and you must be resident in the UK and either an EU National or have permission to stay in the UK for at least 12 months.
"You will need to continue to live in the UK to take advantage of the banking offers and lifestyle benefits that come with Club Lloyds."
The bank’s international banking has a “Premier International Account” that pays no interest and charges a £20 monthly fee unless a balance of more than £2,500 is kept in the account each month. Its international “Bonus Saver” account pays 0.5p% interest on balances up to £100,000. This rate falls to 0.2% after 12 months.
Lloyds said it had taken the “strategic decision” to focus its attention and resources mainly in the UK and to reduce the number of countries in which it operated.
“Among the considerations for that strategic decision are the varied legal and regulatory requirements that apply in each overseas jurisdiction. Lloyds Bank continues to provide banking options to its customers living overseas through its international private banking business,” a spokesman added.
The British Bankers’ Association said there were good reasons why banks could not always provide services to people abroad.
“Costs can be higher and it often becomes much harder to meet the 'know your customer’ checks that banks are obliged to meet. There may also be an increased fraud risk of sending documents, financial information and other correspondence to another country,” the spokesman said.
