The bank is changing its Blue Rewards scheme (Picture: Rex/Reuters)
Money Saving Expert, the financial advice service run by Martin Lewis, has issued a warning to UK customers of Barclays, urging many to switch accounts ahead of upcoming changes.
The bank is set to overhaul its popular Blue Rewards scheme in September, meaning over 100,000 Brits could lose access to a range of benefits.
The optional add-in is available to customers who pay £800 or more into their current account each month, sign up to online or mobile banking and pay a £5 monthly fee.
Members are then eligible for an exclusive ‘Rainy Day Saver’ easy-access account, which pays 5.12% interest on up to £5,000 and has regularly topped the list of best rates since its launch in 2022.
It also offers cash rewards: £5 each month for paying out two or more Direct Debits from your current account, £5 for life insurance with critical illness, £3 for a mortgage, £1.50 for life insurance without critical illness, and £1 for a loan.
A post on the MSE website explains: ‘If you currently get the £5 current account cash reward, it means you’re effectively getting Blue Rewards for free – as the £5 reward cancels out the £5 fee. Anything else on top (such as the interest from the Rainy Day Saver account) is then a net gain.’
As of September 4, however, this will no longer be the case, as Barclays is removing the cash reward element from the product.
Instead, Blue Rewards customers will get access to to Apple TV+ and a season pass (February to October) to the US and Canada Major League Soccer (MLS) streaming service.
Customers will lose access to cash rewards come September 4 (Picture: Getty Images)
Between when this begins on June 18 and the cash rewards end date in September, it’s a double bonus. After this date, though, it effectively means you’re paying £5 per month for Apple TV+ and MLS.
Given these services are worth £8.99 and £14.99 a month respectively, MSE claims it ‘may be worth it for some’, but adds ‘most others will likely be better off’ leaving Blue Rewards.
The shake-up also includes 1% cashback on all spending between September 4 and November 30 this year, alongside cashback of up to15% when you shop with certain retailers.
The experts highlight that while this deal is attractive, a number of other high street banks have similar schemes for debit card holders – and some don’t charge a fee for the privilege either.
Plus, with interest rates on the rise across the board, the Rainy Day Saver account (which is staying the same) may not be the best value for money going forward.
Although Barclays says it’s making the changes in order to ‘reflect what its customers value’, MSE states: ‘The changes mean most should diarise to ditch the scheme from September 4.’
Amid the cost of living crisis and a fast-moving financial landscape, it’s important to schedule in regular checks to ensure your services are right for …read more
Source:: Metro
