A major UK bank used by millions of customers across the UK is set to hike fees on a popular account within weeks.
The Co-operative Bank is increasing the monthly charge on its Everyday Extra bank account in July.
The current account, which provides additional perks compared to Co-op’s standard bank accounts, will see its monthly subscription fee increase from £15 to £18 per month on July 1.
This means the total annual fee paid for the service will jump from £180 to £216 – an increase of £36.
Everyday Extra works like a regular current account, allowing direct debits, standing orders, and usual banking operations. However, customers pay the monthly fee for additional perks.
These benefits include mobile phone insurance, worldwide travel insurance, and an overdraft.
Many other banks offer packaged bank accounts for a monthly fee – such as Monzo Max, which offers phone and travel insurance, higher interest on savings accounts, and perks such as cinema tickets for £17 per month.
The price increase comes after the Co-op launched a switch offer of £175 to entice new customers to change over.
The offer launched in May, with the bank handing out £100 to those who completed a switch to its current account and £25 per month for three months after.
In order to receive the cash incentive, customers must switch their current account to a Co-op Standard Current Account, Current Account Plus, Everyday Extra, or Privilege Premier Account.
A spokesperson from The Co-operative Bank said: ‘Our current Everyday Extra customers have recently been notified that from July 1, we will be increasing their current account fee from £15 to £18.
‘The subscription fee for our Everyday Extra product has remained constant since it launched in 2017, but, unfortunately, due to the costs levied by our suppliers increasing during this time, we’ve had to increase the fees that our customers will pay.
‘By applying for an Everyday Extra account as part of our current £175 switch incentive, customers could effectively get 9 months of additional benefits for free.’
What are the features of Co-Op’s Everyday Extra current account?
Co-op will be raising its subscription fee for its Everyday Extra account to £18 on July 1. The package account includes:
- Mobile phone insurance, worldwide travel insurance, and UK & European breakdown cover
- An overdraft available once the account is opened
To apply you must:
- Be registered with a UK Medical Practioner for travel insurance benefits
- Be between 18 and 79 years old
- Meet the UK residency eligibility criteria for insurance benefits
Co-op is not the only bank increasing fees for packaged accounts this year. Lloyds Bank is increasing the monthly fee on its Club Lloyds package bank account in June.
Currently, customers pay £3 a month for a Club Lloyds account, but this will rise to £5 per month from June 2.
The current account comes with additional perks. For example, customers can choose between a Disney+ subscription, six cinema tickets, a magazine subscription, or 25% off select food and drink brands.
You can also get access to Club Lloyds Monthly Saver – a savings account that pays 6.25% gross/AER on up to £400 a month, and up to 15% cashback at certain retailers.
The monthly fee is still waived if you pay £2,000 or more into the account each month, but for those who don’t meet the requirement, this change could potentially add up to £24 more per year.
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