Martin Lewis’ MSE issues warning over bank account that ‘most should now ditch’ as it axes key perk
MARTIN Lewis’ MSE has warned Brits over a bank account that “most should now ditch” after it axed a key perk.
Barclays recently announced that it was getting rid of its £5 monthly loyalty reward given to Blue Rewards customers.
Members would receive the payment for having two or more direct debits.
Since the bank confirmed it was axing the perk, Martin Lewis’ MSE has urged Brits to ditch the reward scheme.
In a recent newsletter, the MSE team explained that the bank is overhauling its loyalty scheme and replacing it with Apple TV+.
“The changes mean most should ditch the scheme from Wednesday 4 September,” they added.
Barclay’s decision to cancel its £5 monthly loyalty scheme has infuriated customers, with one saying: “This felt like a real benefit as a Barclays customer and it’s frustrating that it will now cost money.
“It feels like a clever way of watering down the amount that I’m getting back from my savings.
“It’s made me think that I could switch to a different bank that won’t charge me to get those rates.”
However, Barclays has announced that after the change, Blue Rewards customers will receive fixed benefits worth up to £44 per month, an increase from the previous £35.50.
People can become a Blue Rewards member if they pay at least £800 into a designated account every month, in addition to a £5 fee.
The change also means customers will be able to access an Apple TV+ subscription and watch Major League Soccer matches with an MLS season pass subscription during the season, as well as getting cashback and interest on savings.
Barclays has said it will conduct reviews to ensure Blue Rewards customers are getting a fair deal for their £5 monthly fee.
If customers aren’t receiving fair value, they will be notified and Blue Rewards and its fee will be removed, leaving customers on Barclay’s standard, fee-free account, the bank said.
Barclays is advising customers: “If you’re happy with these changes and still want to be a Blue Rewards member, you don’t need to do anything.
“If you feel Blue Rewards is no longer right for you, you can cancel your membership. If you’d like to cancel before the changes happen, you’ll need to do it in the Barclays app or Online Banking on or before 3 September.
“If you cancel before 5pm on the last day of a month, we won’t charge you the next fee.”
You can cancel by logging into the app, clicking on “rewards” and then “cancel Blue Rewards”.
Manuel Baldasano, head of customer and digital at Barclays UK, said: “We’ve been evolving Blue Rewards based on what we know our customers value and, with entertainment high on their wish list.
“Our refreshed Blue Rewards proposition, which sits alongside our fee-free account and premier banking, means that customers can choose what works best for them.”
What do other banks offer?
A few other banks, such as Santander, Chase, Halifax and Natwest, reward current account customers with up to £20 per month in cashback.
Cashback accounts function by paying customers free cash if they prioritise using them as their primary bank account.
The amount you receive back could be calculated as a percentage of what you spend on bills, or be set and need you to make a specific number of purchases or pay out several different direct debits.
With Santander Edge, account holders can get 1% back on their water, energy, council tax, mobile, phone, broadband and paid-for TV bills, as well as 1% on most supermarket and travel spending.
This means customers can earn up to £10 a month for each or a maximum of £20 a month.
But the exact amount of cashback you’ll earn will depend on how much each of your bills are.
New Chase customers get 1% cashback (capped at £15 a month) on almost all spending for their first 12 months.