UK banking

BRITAIN’S banks are giving away free cash payments of up to £200 each – and customers need to do one thing to be eligible to claim the money.

The extraordinary deals are being offered by major UK banks such as Lloyds and NatWest as part of the fight to boost customer numbers.

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Nationwide is also among the list of banking giants handing out the free cash payments for changing bank accounts.

The deals are part of switching incentives, and also come with extra perks like cashback and savings rates well above the average.

Nationwide Building Society

The first bank on the list is giving out a handsome sum of £175 to customers who complete a full switch through the Current Account Switch Service (CASS).

Those joining can pick from three accounts: FlexPlus, FlexFirect or FlexAccount.

The FlexDirect account offers 5 per cent AER interest on balances up to £1,500 for the first 12 months.

It also offers 1 per cent cashback on debit card spending with a maximum of £5 per month.

Combining this with the switching bonus, cashback and interest, smart savers could horde up to £400 in free payments in the first year of joining.

Nationwide’s Director of Group Retail Products Tom Riley said: “It’s never been more rewarding to be a Nationwide member and that’s why we want to help more people benefit by offering this switching offer.”

The building society consistently ranks top for customer service and has already attracted over a million new customers through CASS since 2013.

Lloyds Bank

For a £200 free cash payment, Lloyds Bank is giving away bonuses to customers who make a switch.

People who move their existing account to a Club Lloyds or Lloyds Premier account can get the free cash.

But the payment comes on condition they set up three or more direct debits.

Lloyds Bank is one of the UK’s largest financial services organisations and serves tens of millions of Brits.

NatWest

For account holders switching with NatWest, customers can get up to £175 on one condition.

Those choosing a Select or Reward account can get the free cash.

But they must pay in £1,250 first.

And customers also need to login to the mobile app within 60 days.

Other major banks

RBS, part of NatWest Group, is also offering £175 for switching to a Select or Reward account, as long as they pay £1,250 and login to the app in 60 days.

First Direct is offering £175 for switching to its popular 1st Account.

Customers must pay in £1,000 minimum, set up two direct debits or standing orders, and make five debit card payments within 45 days.

The Co-operative Bank’s switch deal stands at £100, with customers able to make another £75.

Customers need to meet the same requirements as First Direct switchers over the next three months.

What energy bill help is available?

There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

Several energy firms have schemes available to customers struggling to cover their bills.

But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

You don’t need to be a British Gas customer to apply for the second fund.

EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill.

Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

Get in touch with your energy firm to see if you can apply.

Financial expert Kate Steere said Nationwide’s package may be the best in value over 12 months, factoring in interest and cashback.

She said: “If you max out the savings and cashback alongside the switching bonus, you could be looking at nearly £400 in your first year.”

Lloyds is offering the highest single payout though, standing at £200 upfront.

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SEVERAL major high street bank brands are set to slash opening hours at hundreds of branches within days, The Sun can reveal.

Lloyds Banking Group, which operates Lloyds, Halifax, and Bank of Scotland, is set to shake-up opening hours at all 757 of its branches from September 29.

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The move is being branded as a step towards consistency and improved staff wellbeing, but it will also mean less time for customers to access in-person banking services.

Under the new rules, branches will open later and close earlier than many currently do.

Weekday opening times will shift from 9am to 9.30am, with an even later start of 10am on Wednesdays to allow for dedicated staff training and development.

Closing times, which currently vary between 4.30pm and 5pm depending on the branch, will now be standardised to between 3.30pm and 4.30pm.

This means customers who previously had access to branches for longer hours will now lose up to 90 minutes of service each day.

Saturday hours are also being reduced, with branches opening at 9.30am instead of 9am.

Most will close by either 1pm or 3pm, cutting 30 minutes from morning banking services.

These changes will result in a net reduction of banking hours across the week.

For example, customers who rely on branches that currently open at 9am and close at 5pm could lose significant time for banking tasks.

The reduction in opening hours reflects a broader trend in the banking industry, as more customers shift to online and mobile banking.

With fewer people visiting branches in person, banks are cutting back on physical service times.

The changes are set to come into effect on September 29, with staff already being informed of the adjustments.

Customers who rely on in-branch services are being advised to check the new opening hours before planning their visits.

You can check your local branch’s operating hours by visiting branches.lloydsbank.com.

Lloyds Banking Group was contacted for comment.

How do I switch bank accounts?

SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.

Under the switching service, swapping banks should take seven working days.

You don’t have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.

Other bank changes

Lloyds, Halifax, NatWest and Bank of Scotland is also closing a total of 119 branches over the next few months.

Last month, the Co-operative Bank announced plans to reduce opening hours at some of its branches by up to three hours a day.

In addition, 18 of these branches will close for one weekday each week.

Starting in January 2026, up to 25 of the affected branches will also shut on Saturdays.

However, the bank has confirmed that none of its branches will be permanently closed as part of these changes.

In June, Santander cut opening hours in half at 36 branches.

This move came as part of a broader restructuring, which also includes the closure of 95 branches and the conversion of 18 to “counter-free” service desks.

In April, Nationwide revised the opening times at 12 high street branches.

This means the days when your local branch would normally be closed have now been shifted to different days of the week.

HOUSEHOLDS across the country are being warned to brace for a financial squeeze as the cost of government borrowing skyrockets to levels not seen since 1998.

This now directly threatens to push up mortgage rates and could usher in a new wave of tax hikes.

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The pound has tumbled in response to the growing unease, highlighting investor concern over the UK’s economic stability. 

At the heart of the issue are government bonds, known as “gilts,” which the government issues to borrow money.

These bonds offer investors a return, referred to as the “yield.”

In recent weeks, gilt yields have been rising rapidly, making it more expensive for the government to borrow.

This morning, yields soared further, with 30-year gilts reaching 5.72% – the highest level in nearly 30 years – while 10-year gilts climbed to 4.85%.

This spike signals that investors are nervous.

They are demanding a higher return to lend to the UK, worried about stubborn inflation and a gaping £51billion hole in the nation’s finances.

The rise in government borrowing costs is putting serious pressure on household budgets in two key ways

Firstly, it’s driving up mortgage rates.

The link between government gilt yields and mortgage rates is direct and unavoidable.

Lenders use “swap rates,” which closely track gilt yields, to set the prices of fixed-rate mortgage deals.

As these rates climb, fixed mortgages become more expensive.

Since August 1, two-year swaps have risen from 3.56% to 3.74%, while five-year swaps have gone from 3.63% to 3.83%.

Major lenders like Barclays have already started increasing rates, and even a small rise can add significantly to monthly payments on a typical £200,000 mortgage.

With swap rates continuing to rise in recent weeks, experts warn that mortgage rates are likely to increase further.

Separately, Chancellor Rachel Reeves faces a difficult challenge in her Autumn Budget, scheduled for November.

Higher borrowing costs are eating into public funds, and many economists believe tax increases will be necessary to fill the financial gap.

Although the government has promised not to raise income tax, national insurance, or VAT for “working people,” other tax measures are reportedly being considered.

One proposal is applying National Insurance to rental income, which critics fear could result in landlords passing on the cost to tenants through higher rents.

Another idea being debated is replacing stamp duty with an annual property tax, which could affect homeowners.

There are also rumours of reducing pension tax relief or cutting the tax-free lump sum, moves that could generate billions but might hurt savers.

Plus, there’s speculation about lowering the VAT threshold, which would bring more small businesses into the tax system.

This could increase their costs and potentially lead to higher prices for consumers.

Reeves is expected to make economic growth the centrepiece of her next Budget, warning that Britain’s economy is “stuck” and in need of bold solutions.

What can you do about it?

None of the proposed changes have been confirmed yet, and the government hasn’t ruled them out either.

However, any new measures won’t take effect until after the Budget in November.

It’s important not to make rash decisions based on speculation.

If changes are announced, you’ll have time to act and protect your finances before they come into effect.

For instance, if stamp duty is replaced by an annual property tax from a certain date, you could move house before the deadline to avoid the extra cost.

Similarly, if the government introduces capital gains tax on high-value properties, you might consider downsizing to a smaller home before the change is implemented.

 Rob Morgan, chief analyst at Charles Stanley, said: “Taking pre-emptive action can outright backfire.

“Last year some people were concerned about restrictions around taking tax free cash from pension and took withdrawals they wouldn’t have otherwise made.

“This removed the money from a tax-efficient environment and potentially stored up tax issues that will come back to haunt them.

“Instead, it’s best to wait to see what happens, consider the consequences, and take advice as required before acting.”

Most of the proposed measures are likely to affect only the very wealthy, so you may not be impacted at all.

If you’re concerned, there are steps you can take to prepare and safeguard your finances.

Check your financial health

If you are worried about your finances then you should speak to a financial adviser.

They will be able to offer you advice about your situation and explain if any of the measures will affect you.

You can find one using unbiased.co.uk – but remember, you will pay a fee.

It’s good practice to sit down and take stock of your finances every six months and work out a plan.

Work out all your bills and outgoings and what income you have and factor in any changes, such as bills going up or new income streams.

Think about what you need to do to make the most of your money. For example, do you need to prioritise paying off debts or saving for a house deposit.

Our guide to paying less tax legally could help you avoid giving away more cash to the tax man than necessary.

Review your mortgage deal

If your mortgage deal is coming to an end soon, act now.

Locking in a fixed rate could shield you from rising rates and market uncertainty.

Aaron Strutt, of mortgage broker Trinity Financial, said “For the moment there have not been significant price hikes but it’s probably worth locking in a mortgage rate if you are buying somewhere or due to remortgage, to try and keep away from any market turbulence.”

If you are coming to the end of a fixed deal, most lenders let you lock in a new rate up to six months beforehand, which can be worth doing.

If rates fall after you agree a new deal, some lenders will let you sign a new one at a lower rate.

Think when investing

Gold prices surged to a record high of $3,546.99 per ounce (£2,643.82) on Wednesday, marking its seventh consecutive daily rise.

Investors are flocking to the precious metal as a safe haven amid inflation fears and fiscal uncertainty.

However, financial advisers suggest maintaining a balanced and diverse investment portfolio as a better strategy for managing market volatility.

A small allocation to gold (5-10%) can be useful, but it shouldn’t be the core of your investment plan, according to Charles Stanley.

Don’t forget a will

If you’re concerned about potential changes to inheritance tax, it’s essential to have a will in place.

Without a will, your estate will be subject to intestacy rules, which could result in a higher inheritance tax bill.

This is especially important for unmarried couples, as they won’t automatically inherit from each other, even if they’ve lived together for years.

Check how to make one in our guide.

Make your savings work harder

More than 31million bank customers have £186billion in savings accounts earning just 1.5% interest, according to banking app Spring.

These accounts generate £2.3billion a year in interest, but savers could earn over three times more by switching to accounts offering up to 5% interest, The Sun can reveal.

The average bank customer has around £10,000 in savings, according to Raisin.

If that £10,000 is kept in an easy access account earning 1.5% interest, it would generate just £150 in interest each year.

But switching to Cahoot’s 5% easy access account would boost that to £500, earning you an extra £350.

If your savings account pays less than the current inflation rate of 3.8%, it’s time to look for a better deal.

IF you’re wondering where your money’s going each month, it might not be big bills or bad luck to blame but small, repeated mistakes that add up fast.

From letting your savings sit in low-interest accounts, to underestimating the real cost of long mortgage terms, financial experts warn that common habits could be quietly emptying your bank accounts.

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We asked money experts and behavioural scientists to reveal the biggest habits that are holding people back.

1. Not knowing what’s coming in and going out

It’s hard to feel in control of your money when you don’t know where it’s actually going.

Many people assume they have a rough idea, but the reality is that forgotten subscriptions, auto-renewing services and small daily purchases quickly add up.

Without visibility, your budget can slowly unravel, and by the time you realise, you’ve slipped into the red.

Vix Leyton, consumer expert at Thinkmoney, says the fix starts with routine: “Take time to know what your outgoings are and what is coming in.

“Some apps, like Thinkmoney, offer a snapshot of what you’re spending, and can even ringfence bill money for you so you don’t accidentally end up facing penalties and late fees.”

Even a five-minute weekly check-in can help avoid nasty surprises and highlight where cutbacks are needed.

2. Living without a savings buffer

It’s hard to save money – but not having a buffer can leave you exposed to high credit when you need cash quickly.

Whether it’s a broken boiler, a car that won’t start or a sudden cut in hours at work, not having a cushion means falling back on credit cards or payday loans just to stay afloat.

The result is a constant feeling of stress, and a budget that can be thrown off by the smallest shock.

Thomas Mathar, behavioural researcher and host of The Money:Mindshift Podcast, says a little slack goes a long way.

He said: “Even a modest buffer, like one month’s rent, can give you the breathing space to make better decisions and avoid high-cost debt.

“It’s not just about the numbers, it’s about having mental and financial slack when life throws you a curveball.”

3. Letting debt pile up month after month

More and more people have credit card debt, which means it can be easy to think it’s business as usual, especially when the minimum payments are low.

But ultimately, you’re paying interest to the bank instead of putting that money toward your own goals. Over time, that can add up to hundreds or even thousands of pounds in lost savings.

“Too many people accept credit card debt as a normal state of affairs. It’s not,” says Mathar.

“Paying down high-interest debt quickly is one of the most powerful things you can do for your long-term well being. It’s buying yourself back freedom, and peace of mind.”

If you’re juggling multiple debts, focus on the most expensive ones first and look into 0% balance transfer options if your credit score allows.

4. Having psychological armour to support you

In the age of side hustles and flashy online success stories, it’s tempting to ditch steady work for riskier pursuits.

But without a reliable income it’s hard to build long-term security.

Inconsistent earnings often mean falling behind on bills, using credit to bridge the gap, and struggling to plan ahead.

Mathar warns that it’s important to have some sort of regular income, even if you’re pursuing other hustles on the side.

He says: “A steady income isn’t just about covering bills, it’s psychological armour.

“When you’re living month-to-month or under-earning compared to your potential, the stress compounds.

“You don’t need to chase big money, but you do need income that’s ‘good enough’ to support a resilient, happy life.”

5. Leaving savings in a dead-end account

You might feel good about putting money aside, but if it’s sitting in an easy-access account earning barely any interest, your savings are losing value in real terms.

With inflation still high, the cost of leaving cash in low-yield accounts is higher than many realise.

Adam French, head of news at Moneyfactscompare.co.uk, says this mistake is all too common.

Adam said: “The likes of HSBC, Lloyds Bank, Santander, NatWest and Barclays all have easy access accounts paying around 1.1 to 1.2 per cent interest, far below the typical returns savers could expect, which is currently 3.51 per cent.”

The top performing options can pay even more, and shopping around and switching accounts only takes a few minutes online.

6. Not making the most of your ISA allowance

More savers than ever are being hit with tax bills they could have avoided.

Frozen tax thresholds mean that even modest savers can end up over the personal savings allowance, paying tax on any interest they earn.

That means, if you’re not using your ISA allowance, you’re potentially giving money away for free.

French explains: “Saving and investing are some of the best ways to build wealth over time.

“But it’s important that savers are aware of their tax liability on any profits they make – which can add up over the course of a few years.

Plenty of savers can avoid this tax bill by making use their yearly ISA allowances.

You can save or invest up to £20,000 a year tax-free, and every pound sheltered from tax is a pound that keeps working for you.

7. Only saving for retirement, and nothing else

Putting money into a pension is smart, but it shouldn’t be your only savings plan.

Many people now take career breaks, retrain, care for relatives or start businesses, and those transitions need funding too.

Mathar says ignoring this reality can leave people exposed.

“We don’t live three-stage lives anymore – education, work, retirement… A ‘transition fund’ – even just a few months’ salary – makes those big life pivots possible without financial panic.”

8. Being too harsh on yourself when things go wrong

Money mistakes happen. But too often, people fall into a cycle of guilt and avoidance, especially if they’re already struggling.

That mindset can stop you from facing your finances or reaching out for help, which only makes things worse in the long run.

Mathar believes the solution starts with self-empathy. “Here’s the truth: we’re all a bit messed up when it comes to money.

Our brains are wired for short-term wins, not long-term planning.

The goal isn’t to be perfect with money; it’s to build enough slack, mental and financial, so that one mistake or setback doesn’t knock you flat.”

9. Not overpaying your mortgage when you could

With mortgage rates still high and household budgets under pressure, many borrowers are choosing longer terms to keep monthly payments manageable.

But unless you’re also making overpayments, that strategy can come at a serious long-term cost.

French says small changes now can lead to huge savings later: “Overpaying by £200 per month on that same £250,000 40-year mortgage could shave almost 13 years off the mortgage term, saving them around £123,000 in interest payments.

“This is all without being tied to having to consistently make higher payments every single month – boosting the flexibility of their budget and their financial resilience.”

Most lenders allow up to 10 per cent overpayment each year.

Even £50 a month can help you become mortgage-free sooner and pay far less in interest overall.

A SUPERMARKET giant has made a huge change to its shops, in a boost for customers who want to pay with cash.

Morrisons has introduced 40 cash machines into its supermarkets across the UK, making it the UK’s largest non-bank network.

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A further 13 ATMs are set to launch in the coming months to make it even easier for customers to access cash.

Shoppers can use the ATMs to withdraw and pay in money as part of their regular shop.

The ATMs are now available in the following Morrisons supermarkets:

• Acocks Green
• Speke
• Eccles
• Witham
• Aldershot
• Swadlincote
• Failsworth
• Blyth
• Bideford
• Swinnow Road
• Grays Buxton
• Bishop Auckland
• Wednesbury
• Hull (Holderness Road)
• Colwyn Bay
• Bromsgrove
• Kirkby
• Ilkeston
• Dover
• Cardonald
• Bellshill
• Leyland
• Letchworth
• Carmarthen
• Castle Bromwich
• Malton Nelson
• Chippenham
• Coalville
• Oswestry
• Redcar
• Crossmyloof
• Hyde
• Partick
• Oxted
• Ebbw Vale
• Sidcup
• Small Heath
• New Milton

So far, more than £1million a month has been paid into banks using these ATMs.

The machines are operated by NoteMachine and were delivered thanks to a partnership with Cash Access UK, a company funded by major high street banks to bring cash services to communities.

Ben Mildred, treasury manager at Morrisons, said: “We’re proud to be helping make banking more accessible by offering cash deposit services in our stores.

“Customers have told us they like the flexibility and convenience the cash deposit ATMs offer and so we are pleased to be rolling them out to more stores in the coming weeks.”

The news comes after UK banks closed more than a third of branches over the past five years, leaving customers without access to banking services.

Lloyds, Halifax, NatWest and Bank of Scotland are set to shut more than 100 bank branches by the end of the year.

Elsewhere, Santander is set to close 95 branches and reduce hours at another 50.

Other ways you can access cash

There are still several ways you can access basic banking services without having to travel to another town with a branch.

If all the banks in your town have closed then you may be able to get a banking hub.

Banks visit the hub on a rotating basis, and take it in turns to use the site on different days of the week.

You can use them to withdraw cash, pay in money, check your balance and pay bills.

Another option is to visit one of the Post Office’s 11,684 branches to do basic banking tasks such as paying in or withdrawing cash.

But you will still need to visit a branch to open a new bank account, take out a personal loan or mortgage.

You can find your nearest Post Office by visiting postoffice.co.uk/branch-finder.

Many banks also offer a mobile banking service, which is when they bring a bus to your area to provide services you can usually get at a physical branch.

Other banks use buildings such as village halls or libraries to offer mobile banking services.

You should check your bank’s website to see what mobile services are available and when they might next be in your area.

New super ATMs are being rolled out across the UK where branch closures have left residents unable to access essential banking services.

These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

SHOPPERS who use Apple Pay or Google Pay may be at higher risk of fraud, consumer group Which? has warned.

It said the use of one-time passcodes by banks could be making people with digital wallets an easy target for scammers.

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A survey by the consumer champions found that the majority of banks are still using these security features, putting consumers at risk.

Unlike contactless cards, there is no £100 spending cap on cards added to Apple and Google Pay, so fraudsters can quickly drain victims’ accounts once they gain access to it.

Scammers normally trick people into divulging their card details by setting up a fake transaction, Which? said.

People will think they’re paying for a bargain product advertised online, or they might fall victim to a phishing message.

A common example is parcel delivery scams, where you’re asked to pay a nominal amount for re-delivery.

Scammers monitor the transaction in real time, inputting the victim’s card details into a digital wallet on their own phone.

Many banks will then ask for a one time passcode (OTP) to verify the cardholder, which the scammer then asks the victim for to complete the “transaction”.

The fraudsters are then able to drain the victim’s bank account.

Which? surveyed 15 banks and card providers about their digital wallet setup process between April and May this year, and found the majority still use OTPs sent through text message as one of the options for adding cards to a digital wallet.

Of the 14 providers that allow cards to be added to wallets (Capital One is the exception), just two banks confirmed they do not use OTPs, while a third appeared not to when Which? researchers tested the process.

Barclays, Co-op, HSBC (with its sister banks First Direct and M&S Bank), Santander and Virgin Money said they currently use SMS OTPs, though they are not the only verification option.

Starling said it still uses OTPs for setting up Apple Pay alongside other options, but it removed them from Google Pay in 2022.

TSB said it is working to set up in-app verification, but is using OTPs in the meantime.

American Express, Lloyds Banking Group and NewDay (which operates the John Lewis Partnership Credit Card) – did not outline which verification methods they use.

When Which? tested the set up processes for cards, Amex did use SMS and email OTPs, while Halifax did not and instead offered several “more robust methods” including in-app approval.

Chase and Monzo said they have never used OTPs for setting up digital wallets.

It comes after Cifas, UK Finance and the Cyber Defence Alliance previously warned about the link between OTP use and digital wallet fraud.

Providers can also limit how many wallets a card can be added to overall, or within a certain time period, but most banks do not implement these restrictions.

Virgin Money allows an individual card to be added to a maximum of five devices.

Starling with a total limit of 15 devices, while Monzo customers can only add their Monzo cards to a digital wallet twice in a 24-hour period and three times every 30 days.

However, Which? said that even with these limits in place, consumers can still fall victim to scammers as they only need to add one card to a digital wallet to start spending.

Which? Money deputy editor Sam Richardson said: “For millions of us, digital wallets are a quick, easy and secure way to make payments, but weaknesses in card providers’ security means they can also be a gift to scammers.

“Banks have known for years that using one time passcodes (OTPs) to verify account holders is leaving consumers vulnerable.

“It’s clear further investment is needed to make the digital wallet set-up process fit for the threats consumers face in 2025.

“In the meantime, we’d caution shoppers to always think twice before sharing their payment details – or OTPs – online.

“If you think you’ve been a victim of a scam, contact Action Fraud and your bank immediately.”

Apple told Which? it is not responsible for approving or rejecting the addition of a card to Apple Pay, or for approving or rejecting transactions.

It said that it takes users’ security seriously and Apple Pay has been designed in a way to protect users’ personal information. 

A Google spokesperson said: “Security is core to the Google Wallet experience and we work closely with card issuers to prevent fraud.

“For example, banks notify customers when their card has been added to a new digital wallet, and we provide signals to help issuers detect fraudulent behaviour so they can decide whether to approve added cards.” 

An American Express spokesperson said: “Privacy and security are a priority for American Express.

“We have controls designed to protect customer accounts and guard against unauthorised fraudulent activity, and if we identify activity that may be fraud, we will take protective actions.” 

Barclays said that the verification method used for adding a card to a digital wallet will depend on the user journey. It said it does not currently have plans to phase out use of OTPs.

Co-Op Bank said it monitors for fraudulent registrations through its fraud detection systems and has multiple strategies in place to detect digital wallet fraud. It does not currently have plans to phase out use of OTPs.

HSBC said it has no immediate plans to phase out OTP delivery for adding cards to digital wallets, however, it keeps its digital wallet provisioning process under review.

Lloyds said it has invested millions of pounds in multi-layered fraud defences, and continues to regularly review its authentication methods.

Nationwide said that it has multiple layers of protection in place to keep its customers safe from fraud including warning messaging, AI models and sophisticated internal analytics. It is currently exploring alternatives to OTPs.

Natwest said it regularly reviews its customer experience and authentication to ensure security, and said it is reviewing how it uses OTPs.

NewDay declined to comment.

Santander said it is looking at other forms of authentication, and other security measures, which may be less visible to a user than the mechanism used for two-factor authentication.

Starling said it currently only uses OTPs for Apple Pay, and removed this option from Android phones in 2022.

TSB told Which? that it is working closely with card and wallet providers to implement approval via the TSB Mobile App. In the interim, OTP verification is accompanied by the necessary risk verification, alongside fraud controls to keep customer details safe.

Virgin Money said its fraud team has heightened monitoring and controls around digital wallet fraud. It also said that it is looking at in-app verification as an option but has no current plans to phase out use of OTPs.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

A BIG high street banking chain is axing a lifeline service for all customers within weeks.

M&S Bank is stopping customers from paying off their credit card bills in-store, by cheque, or using bank giro credit – a move campaigners say will make life harder for older and vulnerable people.

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The bank, run as a joint venture between HSBC and M&S since 2004, had already paused in-store credit card payments back in April.

Now, the decision has been made permanent, according to This is Money.

To make matters worse, a letter sent to customers confirmed that from October, payments by cheque or giro credit will no longer be accepted at banks, building societies, or post offices.

The decision has caused a stir, with critics claiming it’s yet another blow to older people who are being left behind in an increasingly digital world.

Baroness Ros Altmann, a pensions expert, said: “You’re pushing away your most loyal, older customers who’ve probably shopped with you for decades.

“It might only be a minority who use these methods, but with M&S Bank’s huge customer base, it’s still a lot of people.

“These changes tend to hit older folks hardest.

“Many don’t have access to online banking or smartphones, and some prefer cash to help them budget better.”

M&S Bank currently offers credit cards, personal loans, travel insurance, store payment cards and a buy now pay later credit to over three million UK customers.

Caroline Abrahams, Age UK’s charity director, also raised concerns.

She highlighted research showing that 27% of people still manage their accounts through branches, while 31% feel uneasy about banking online.

“Reducing payment options will limit some older people, especially those who aren’t online or who prefer cash,” she said.

M&S Bank has defended the decision, saying only “1%” of customers use these older payment methods.

A spokesperson said: “Most customers are choosing to use digital channels for their banking needs.

“We’ve introduced a pay-by-bank option via the M&S Bank app, alongside direct debit and bank payments, to make things easier for them.”

They added that the axed options were “legacy payment methods” and pointed out that customers can still pay at a bank, but giro forms will no longer be printed with statements.

M&S Bank used to offer current accounts prior to 2021.

However, the bank closed this product offering on August 31, 2021, in a shock move that also resulted in the closure of all 29 in-store bank branches on July 2 of the same year. 

Since the shake-up, the bank has completely shifted its focus to credit cards, insurance and reward offerings.

What other banking changes are coming?

NatWest is making changes to its business current accounts by increasing fees for cash payments, cheque transactions, and certain online transfers.

From August 30, cash payments into and out of business accounts will see their fees surge from 70p per £100 to 95p per £100. 

Cheque payments, whether processed by hand or via mobile, will also jump from 70p to 75p per cheque.

The bank is also increasing some charges related to its BACS payment system.

The BACS system is a UK payment network used by businesses to make electronic bank-to-bank transfers, such as Direct Debits and Direct Credits.

The fee for processing each individual payment or instruction, will soon rise from 18p to 21p.

The cost to process a file containing multiple payments or instructions will also increase slightly from £5.25 to £5.35.

Meanwhile, Santander is closing its 123 Lite current account, which offers up to 3% cashback on household bills for a £2 monthly fee, on August 21.

Customers affected by the closure will be automatically switched to Santander’s Everyday Current Account.

This account has no monthly fee but does not include cashback benefits.

Plus, new customers applying for the bank’s Edge Credit Card will now face a monthly fee of £4, an increase from the previous £3.

Plus, customers of Lloyds Bank, Halifax and Bank of Scotland will soon lose the ability to deposit their cheques at any of the 11,500 Post Office branches nationwide.

From December 31 this year, Lloyds Banking Group will withdraw this service for all customers.

A MAJOR bank with millions of customers is make a huge change to dozens of bank accounts starting within days.

The Co-operative Bank is cutting interest rates on 36 savings accounts, delivering a fresh blow to savers.

It comes just days after the Bank of England lowered the base rate from 4.25% to 4%, marking the fifth interest rate cut since 2020.

The decision means lower mortgage payments for homeowners but often leads to smaller returns for savers.

That’s because the base rate impacts the interest rates banks offer on savings accounts and loans, including mortgages.

The Co-operative Bank has wasted no time, announcing that interest rates on dozens of accounts will be reduced starting on August 14 and October 22.

On August 14, the Base Rate Tracker accounts will see reductions, with interest rates dropping from 4% to 3.75% and from 3.75% to 3.5%.

For example, if you had £1,000 deposited for 12 months, the interest earned at 4% would have been £40.

After the rate drops to 3.75%, you would earn £37.50 – a difference of £2.50.

Similarly, with the rate falling from 3.75% to 3.5%, the interest earned would decrease from £37.50 to £35, meaning £2.50 less over the year.

From October 22, various other accounts will experience cuts, including the Future Fund, which will see its rate fall from 1.53% to 1.46%, and the Online Saver, dropping from 2.12% to 2.06%.

Other affected accounts include the Smart Saver, Select Access Saver 5, and Privilege Premier Savings, with reductions ranging from 4.15% to 3.9% and 3.53% to 3.4%. 

Cash ISA holders will also be impacted, with Cash ISA 2 rates falling from 3.25% to 3%.

Fortunately, several savings providers still offer returns of up to 5%.

With the average bank customer holding around £10,000 in savings, according to Raisin, switching could be a smart move.

To help you get the best returns, we’ve listed the top savings rates for each account type below.

What’s on offer?

If you’re looking for a savings account without withdrawal limitations, then you’ll want to opt for an easy-access saver.

These do what they say on the tin and usually allow for unlimited cash withdrawals.

The best easy access savings account available is from Cahoot, which pays 5% – and you only need to pay a minimum of £1 to set it up.

This means that if you were to save £1,000 in this account, you would earn £50 a year in interest.

Meanwhile, West Brom Building Society’s easy access account offers customers 4.55% back on savings worth £1 or more.

If you’re okay with being less flexible about withdrawals, a top notice account could be a great option.

These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a a fixed-bond.

RCI Bank UK’s 95 day notice account offers savers 4.7% back with a minimum £1,000 deposit, for example.

This means that if you were to save £1,000 in this account, you would earn £47 a year in interest.

Meanwhile, GB Bank’s 120-day notice account offers 4.58%, requiring a minimum deposit of £1,000.

If you want to lock your money away and keep the same savings rate for a set time, a fixed bond is a good choice.

The best fixed rate currently offered is Vanquis Bank’s one-year fixed bond, which pays 4.44%, requiring a minimum deposit of £1,000.

Meanwhile, Atom Bank’s one-year fixed bond offers 4.42% back on a deposit of £50 or more.

This means that if you were to save £1,000 in this account, you would earn £44.20 a year in interest.

If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends.

Principality Building Society’s Six Month Regular Saver offers 7.5% interest on savings.

It allows customers to save between £1 and £200 a month.

Save in the maximum, and you’ll earn £25.81 in interest.

While regular savings accounts look attractive due to the high interest rates on offer, they are not right for all savers. 

You can’t use a regular savings account to earn interest on a lump sum.

The amount you can save into the account each month will be limited, typically to somewhere between £200 and £500.

Therefore, if you have more to save, it would be wise to consider one of the other accounts mentioned above.

A WARNING has been issued to savers missing out on hundreds of pounds ahead of a key Bank of England (BoE) decision this week.

People risk the cash blow because they’re leaving money in low-paying easy access accounts.

The latest data from Moneyfactscompare.co.uk reveals someone with £10,000 in savings could earn an extra £300 by switching to an account with a higher interest rate.

Adam French, from the comparison site, said savers were in danger of their hard-earned cash “languishing” by making the mistake.

“Simply switching a £10,000 savings pot away from a high street bank’s easy access account to a market-leading one-year fix can leave you £300 better off in 12 months’ time.

“Not a bad return for a few minutes’ work, if you aren’t going to need access to the money sooner.”

The warning comes ahead of the BoE’s Monetary Policy Committee (MPC) meeting on Thursday (August 7) where it will decide what to do with the base rate.

The base rate is charged to high street banks and other lenders and usually reflected in savings and mortgage rates.

Any fall is good news for mortgage holders who tend to see rates plummet, but it spells bad news for those with savings accounts.

The bank is widely expected to cut the base rate, which currently sits at 4.25%.

The MPC, made up of nine members, last met in June when it decided to keep interest rates unchanged.

Six members voted to keep rates at the existing level while three members voted for a cut to 4%.

The BoE uses the base rate to control inflation, with a hike designed to discourage spending and keep prices in check.

The current Consumer Price Index (CPI) measure of inflation is 3.6%, over the BoE’s 2% target.

However, the MPC is under pressure to lower interest rates to get the stagnating economy growing.

How to make your savings work harder

You can’t do anything to control what the BoE does with the base rate, but you can make your savings work harder.

One way to do this is by locking your savings into a fixed-term account.

These accounts pay out an interest rate for a set period of time, from anywhere between six months and five years.

Fixed-rate savings accounts generally offer better interest rates in exchange for you not being to withdraw any cash.

Just bear in mind you may have to pay a charge for any early withdrawals.

Second, it’s worth making the most of ISAs which allow you to save money without having to pay tax on any interest earned.

You can spread a total of £20,000 across various ISA types including Cash ISAs and Stocks and Shares ISAs.

And of course, shop around for the best deals so you’re not left with a low-paying savings account.

Comparison sites like moneyfactscompare.co.uk and moneysavingexpert.com can help you find the best account suited to you.

A MAJOR high street bank has become the latest British lender to quit the Net Zero Banking Alliance, the bank said on Friday.

Barclays argued that the departure of several global lenders has left it no longer fit to support the bank’s green transition.

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Barclays’ decision to quit the foremost banking alliance focused on tackling climate change follows on from HSBC and several major US banks.

It also raises questions about the ability of the group to influence change in the sector going forward.

The bank said in a statement on its website: “After consideration, we have decided to withdraw from the Net Zero Banking Alliance.”

It added that its commitment to be net zero by 2050 remained unchanged and that it still saw a commercial opportunity for itself and its clients in the energy transition.

Earlier this week Barclays published the first update on its sustainability strategy in several years.

It said the bank made £500 million in revenue from sustainable and low-carbon transition finance in 2024.

Jeanne Martin, co-director of corporate engagement at responsible investment NGO ShareAction called the decision to leave the Net Zero Banking Alliance “incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting.”

Barclays said the alliance was no longer fit for its purpose: “With the departure of most of the global banks, the organisation no longer has the membership to support our transition.”

The Net Zero Banking Alliance, a global initiative launched by the United Nations Environment Programme Finance Initiative, lists more than 100 members on its website – including leading international financial institutions.

A spokesperson for the alliance said it remains focused on “supporting its members to lead on climate by addressing the barriers preventing their clients from investing in the net-zero transition.”

It comes after it was announced that Barclays is slashing interest rates on its popular Rainy Day for the third time in less than seven months.

From August 4, the interest rate for balances up to £5,000 will fall from 4.61% to 4.36%.

The Rainy Day Saver account, which offers easy access to funds, has been a favourite among Barclays‘ 20 million customers.

It is designed for balances up to £5,000, with savers earning the higher rate on the first £5,000 – currently 4.61%.

Savings above this threshold earn just 1% interest, but customers benefit from instant access to their money at any time.

At the current rate, holding £5,000 in the account would earn you £230.50 in interest over 12 months.

However, when the rate drops to 4.36%, this will fall to £218 – a loss of £12.50 per year.

Once boasting a competitive 5.12% interest rate earlier this year, Barclays has steadily chipped away at its appeal.

In February, the rate dropped to 4.87%, followed by another cut in April to 4.61%.

In February, the bank reduced the rate to 4.87%, followed by another cut in April to 4.61%.

Now, just months later, rates are set to drop again, leaving savers questioning whether to stick with the account or explore better options elsewhere.

How Barclay Card Changes Could Affect You

ANALYSIS by Consumer Reporter, James Flanders:

Barclaycard’s change to its credit card repayment structure sounds great if you don’t dig into the details.

After all, Barclaycard says it’s “making the changes to give you greater flexibility each month”.

In practice, it means that if you can’t afford to pay off your balance in full at the end of each statement period, you can repay much less under the minimum repayment option than you have done previously.

If you only pay the minimum amounts on occasion, this is super useful.

But if you rely on this type of repayment plan in the long term, it could will cost you hundreds of pounds extra in interest.

It could also negatively affect your credit file as it’ll take you much longer to clear your debt.

More interest will be applied to your outstanding balance, too, as less is paid down each month.

For example, if you have a balance of £5,000 on a Barclaycard at 24% interest, where you only make the minimum payments and don’t spend on the card.

Under the old “2.5% of the balance plus the interest charged” rule, it would take around 14 years to clear the balance.

In total, you’d expect to pay about £3,500 in interest.

But with the new “1% of the balance plus the interest charged” calculation, it will take over 30 years to clear the same balance.

You’d then end up paying a whopping £8,500 in interest.

Before taking out a new credit card or increasing the amount you borrow, it’s vital to consider the consequences.

You should only borrow money if you can afford to pay it back.

It’s always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft.

If you use a credit card, I’d recommend that you always pay off your balance in full at the end of each statement period.

Lenders have a responsibility to help customers who are in debt.

If you’re in a debt crisis, your first point of call should be your lender.

They might help you out by offering you a reduced interest rate or a temporary payment holiday – so check in with your lender if you’re struggling.

A major bank will axe a key bank account perk for thousands of customers in a matter of days.

Halifax, part of Lloyds Banking Group, is getting rid of “Extras” for Rewards current account holders.

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The bank currently charges a £3 monthly fee to run this bank account and customers are given freebies in return for hitting certain targets.

For example, customers can get £5 paid into their bank account or a free cinema ticket if they either spend £500 on their debit card each month or hold a balance of over £5,000.

Halfiax has plans to close down this service come September, meaning customers who meet these targets will no longer get a reward.

To prepare for this, Halifax has told customers that from June 17 they will no longer be able to add Reward Extras to their account or renew an existing Reward Extras offer.

But it is not all bad news as the bank is axing the service to make way for a number of new features.

Currently, Halifax charges a £3 monthly fee to run this bank account and customers are given freebies in return for hitting certain targets.

For example, customers can get £5 paid into their bank account or a free cinema ticket if they either spend £500 on their debit card each month or hold a balance of over £5,000.

But the bank has plans to close down this service come September, meaning customers who meet these targets will no longer get a reward.

This includes fee-free debit card spending abroad and a £100 interest free arranged overdraft to existing and new eligible Reward account customers. 

Rewards customers are currently charged a 2.99% fee for using their debit card abroad.

That means customers are currently charged an extra £2.99 for using their debit card to pay £100 abroad.

This change will come into effect on August 1.

Customers who meet the requirements will also be allowed to enter into a £100 overdraft and not face any interest.

OTHER BANK CHANGES

The Co-operative Bank announced it would be increasing the monthly charge on its Everyday Extra package bank account in July.

Currently, customers pay a monthly fee of £15, totalling £180 a year.

But starting from July 1, this fee will increase to £18 a month—an extra £36 annually.

Elsewhere, Lloyds recently hiked the cost of its Club Lloyds account from £3 to £5.

The packaged account provides extra benefits including a Disney plus subscription, cashback rewards, and access to linked savings accounts with preferential interest rates.

Skipton Building Society also recently lowered the interest on a total of 92 types of savings accounts.

How do I switch bank accounts?

SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.

Under the switching service, swapping banks should take seven working days.

You don’t have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.

SANTANDER is slashing interest rates for two of its savings accounts from today – and customers should check if they’re affected.

The major bank is cutting savings rates from June 3 (today) on its Good for Life ISA and Rate for Life accounts.

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The interest rate on the Good for Life ISA account will drop from 4.5% to 4.25%, while the rate for the Rate for Life account will drop from 4.75% to 4.5%.

Those who have saved less than £1,000 in the Rate for Life account will still continue to earn the same rate (1%) on these balances.

It comes after the Bank of England (BoE) cut the base rate from 4.5% to 4.25% last month – the fourth cut since 2020.

The base rate is used by banks to determine the interest rates offered to customers on savings and borrowing costs.

While a rate cut is good news for borrowers, it’s usually bad news for savers, who will usually see savings rates fall when the base rate is cut.

This means they will earn less on their cash.

For example, the average easy access savings rate was 2.78% on May 8, when the base rate was cut.

Now it has dropped to 2.72%, according to comparison site Moneyfacts.

Santander is not the only bank cutting rates on savings accounts. HSBC has also cut rates on eight of its savings accounts today.

Nationwide Building Society cut savings rates on 63 of its accounts on Sunday, from easy-access ISAs to children’s accounts.

NatWest cut savings rates on four of its accounts last Friday.

Meanwhile, rates on three of its savings accounts and a kids’ current account will be slashed from July 15.

How to get the best savings rate

As savings rates tumble, now is a good time to check what the interest rate is on your existing account.

Around £280billion is sitting in accounts paying zero interest, according to latest data from the BoE.

If you have an interest rate below the rate of inflation – which is currently 3.5% – then consider moving your money elsewhere, otherwise the spending power of your savings is eaten away.

Use price comparison sites such as moneysavingexpert.com or moneyfactscompare.co.uk to browse the best savings accounts on the market.

The best easy access savings rate (based on a balance of £1,000) is offered by Atom Bank at 4.5 per cent.

Experts are predicting that more cuts to the base rate this year are likely, so it may be worth considering locking up your money in a fixed rate savings account if you can afford to do so.

The best one year fixed rate savings account is offered by Hampshire Trust Bank at 4.45%.

However, be aware that you usually can’t make withdrawals out of fixed term savings accounts, even in an emergency.

Anne Bowes from The Private Office said: “Review your savings accounts and switch if you are being paid an uncompetitive rate.

“Double check the terms and conditions of any account you are looking to open – or indeed close – as some accounts may have very short-term bonuses or restricted access.

“That means you might not earn as much interest as you hoped, or get hold of the money in as timely a manner as you were expecting.”

How to switch banks

For customers not happy with the latest shake-up, you may want to consider switching banks.

Switching bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).

Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.

Under the switching service, swapping banks should take seven working days.

You don’t have to remember to move direct debits across when moving, as this is done for you.

All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.

There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.

You should get in touch with your existing bank for any old statements.

When switching current accounts, consider what other perks might come with joining a specific bank or building society.

Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.

And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.

A MAJOR building society is set to slash interest rates on 37 of its personal savings accounts within days.

Newcastle Building Society is dropping rates on dozens of variable rate savings accounts from June 5.

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It comes after the Bank of England (BoE) cut its base rate from 4.5% to 4.25% earlier this month.

The base rate is the rate charged by the BoE to smaller high street banks on loans, with any fall usually mirrored in savings rates.

Newcastle Building Society is reducing rates on the 37 personal savings accounts by 0.25 percentage points.

The Double Access Saver/ISA (Issue 4) will drop from 4.05% to 3.80%, for customers eligible for a bonus interest rate.

Meanwhile, the Newcastle Cash Lifetime ISA (Issue 3) will fall from 2.70% to 2.45%.

The Newcastle Junior Cash ISA will be cut from 3.75% to 3.50% and the Regular Saver Plus from 2.50% to 2.25% for anyone receiving the bonus interest rate.

Customers with fixed-rate savings accounts won’t see interest rates fall from June 5.

Interest rates on two variable rate savings accounts – the Loyalty Saver (Issue 1) and Quadruple Access Saver/ISA (Issue 1) – will also not change as they have only been available to customers since April 24.

You can view the table above to find out how the interest rate on your savings account has changed.

Or, you can visit www.newcastle.co.uk/savings/manage-your-savings-account/interest-rates and click on “Current and Closed Issue Variable Savings Interest Rates”.

The Sun asked Newcastle Building Society to comment.

MAJOR BANKS CUTTING RATES

A host of banks are reducing interest rates on savings accounts as the BoE continues to cut its base rate.

HSBC is cutting rates on eight of its savings accounts from June 3, and joins NatWest and Nationwide who are both doing the same.

Nationwide is cutting interest rates on over 60 savings accounts from June 1 including a number of ISAs and easy access accounts.

NatWest is also cutting rates on a number of accounts from the end of this month.

It comes after the BoE cut its base rate from 4.50% to 4.25% on May 8.

The central bank raises its base rate to discourage people from spending and encourage them to save, which in turn is designed to make inflation fall.

It lowers its base rate when inflation is under control, meaning people are encouraged to spend and pump money into the economy.

A lower base rate signals good news for those with mortgages who see the interest rates charged on them fall.

However, it’s usually bad news for those with savings accounts as banks slash interest rates.

If you’ve got a savings account with an interest rate set to drop, it might be worth shopping around for a better deal now.

Check out comparison sites like moneysavingexpert.com and moneyfactscompare.co.uk to browse the best out there.

According to Moneyfacts, Chip is offering the best rate on an easy access savings account, with a rate of 4.77%.

Meanwhile, the best easy access cash ISA is also with Chip and offering a rate of 4.99%.

Always look beyond just the headline interest rate on any savings account though.

Some offer additional perks which can make them more cost-effective and suited to you, based on your circumstances.

For example, some offer you access to free TV subscriptions or cheaper or free cinema tickets.

Different types of accounts pay out interest at different times too while others will offer a bonus interest rate which falls after a set period.

Some savings accounts penalise you for making withdrawals over a certain limit.

Meanwhile, ISAs can be effective for saving cash as any interest earned on them is tax-free.

Read more below about the different types of savings accounts and what they offer.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

MILLIONS of bank customers face being left stranded after a damning report revealed 6,000 branch closures over the past decade.

A whopping 13million customers used bank branches last year, according to the Financial Conduct Authority (FCA).

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The data shows that most users remain “reliant on bank branches for essential services,” despite the move toward online banking.

The FCA report revealed that an eye-watering 9.7million people visited a specific site at least once a month.

Experts fear that the trend of branch closures will leave customers stranded with around 3.3million account holders never banked online.

Around 63 per cent of those are over the age of 85, which raises further concern, according to the FCA.

The report also found that people from low-income households – as well as those with cancer, multiple sclerosis, or HIV — were less likely to engage with digital banking.

Caroline Abrahams, charity director at Age UK, said: “The disappearance of face-to-face banking risks cutting a significant minority of the older population out of an essential service, making it difficult if not impossible for them to maintain their independence.”

The main reasons people avoided online banking were concerns about security and a preference for speaking to someone face-to-face.

A staggering 21 per cent of account holders surveyed said their regular bank branch had closed.

Consumer group, Which?, showed that more than 6,000 branches have shut in the past decade.

Jenny Ross, money editor at Which? said: “As the UK’s bank branch network continues to be cut to the bone, more people are finding it difficult to access banking services.”

 Former pensions minister Ros Altmann added: ‘Millions of British citizens cannot and do not use online or mobile banking, and indeed don’t even have a smartphone.

Despite the rising bank closures, Nationwide has committed to keeping all of its branches open until 2028.

The major bank has seen the number of customers rise by 4 per cent, which appears to be partly driven by other bank closures.

Which bank branches are closing in June?

Halifax:

• Bitterne: 400/402 Bitterne Road SO18 5RS – June 9
• Bournemouth: 335/337 Wimborne Road BH9 2EA – June 4
• Felixstowe: 85 Hamilton Road IP11 7BQ – June 2
• Fleetwood: 4 Poulton Street FY7 6LR – June 22
• Gainsborough: 32 Lord Street DN21 2DQ – June 2
• Launceston: 1 Southgate Street PL15 9DP – June 3
• Leek: 16 Derby Street ST13 5AB – June 4
• Letchworth: 1 Commerce Way SG6 3DN – June 3
• Littlehampton: 68 High Street BN17 5EA – June 23
• London (North West): 469 Kingsbury Road NW9 9ES – June 2

Bank of Scotland:

• Bathgate: 50 Hopetoun Street EH48 4EU – June 30
• Cowdenbeath: 349/351 High Street KY4 9QJ – June 24
• Linlithgow: Regent Centre Blackness Road EH49 7HU – June 23

Lloyds:

• Alcester: Stratford Road B49 5AX – June 25
• Ashbourne: Compton DE6 1DY – June 24
• Dorchester: 1-2 High West Street DT1 1UG – June 19
• Launceston: 13 Broad Street PL15 8AG – June 3
• Liverpool: 188-190 Breck Road L5 6PX – June 4

Over the rest of the year, another 40 branches are closing.

These include locations in Bristol, London, Bolton, Edinburgh and Coventry.

Here is the full list…

Halifax:

Barrow-in-Furness: 133-135 Dalton Road LA14 1HZ – September 10
Bexleyheath: 131 Broadway DA6 7HF – October 23
Blackpool: 283/287 Lytham Road FY4 1DP – October 29
Bolton: 23/27 Knowsley Street BL1 2DG – November 20
Brentwood: 12 High Street CM14 4AE – September 10
Bristol: 15 Kings Chase Shopping Centre BS15 8LP – October 8
Carmarthen: 121/122 Lammas Street SA31 3AE – October 6
Castleford: 68 Carlton Street WF10 1DB – September 8
Cirencester: 10/12 Cricklade Street GL7 1JH – September 25
Crewe: The Market Centre CW1 2HU – October 14
Derby: 39 East Street DE1 2BL – October 23
Epsom: 51-52 The Ashley Centre KT18 5DB – September 15
Erdington: 221 High Street B23 6SS – September 24
Folkestone: 70-72 Sandgate Road CT20 2AA – October 9
Hayes: 45/47 Station Road UB3 4HH – October 6
Hexham: 20 Priestpopple NE46 1XH – November 5
Hove: 86/87 George Street BN3 3YE – October 20
London (South East): 165/169 Eltham High Street SE9 1TT – October 29
London (South East): 9-13 Powis Street SE18 6HZ – October 1
London (South West): 6 St Johns Hill SW11 1RU – September 23

Bank of Scotland:

Edinburgh: 206 St John’s Road EH12 8SH – October 29

Lloyds:

Biggleswade: 35 High Street SG18 0JD – November 5
Blandford: 6 Market Place DT11 7EE – November 10
Bristol: 16 Highridge Road BS13 8HA – November 6
Bury: 45 The Rock BL9 0JP – October 21
Chard: 27 Fore Street TA20 1PS – November 11
Coventry: 531 Foleshill Road CV6 5JN – November 4
Dunstable: 12 High Street North LU6 1JY – November 4
East Grinstead: 1/3 London Road RH19 1AH – November 12
Fakenham: 27 Norwich Street NR21 9AH – July 1
Falmouth: 11-12 Killigrew Street TR11 3RA – November 13
Feltham: 40 The Centre TW13 4AX – November 4
Ferndown: 84 Victoria Road BH22 9JB – November 17
Hexham: Priestpopple NE46 1PA – November 5
Kidderminster: 1 Vicar Street DY10 1DE – October 16
Leeds: 1 Cross Gates Centre LS15 8ET – August 20
Leeds: 52 Town Street LS12 3AE – September 8
Leominster: 9 Corn Square HR6 8LT – November 18
London (East): 180 – 182 High Street E17 7JH – October 22
London (South West): 12 Mitcham Road SW17 9ND – October 8
Loughton: 11 The Broadway IG10 3SW – November 12
Manchester: 64 Old Church Street M40 2JF – November 5

Since June 2022, Lloyds Banking Group has shut 537 bank branches across its three brands.

It has previously said all workers at the affected branches will be offered jobs elsewhere in the company.

UK banks and building societies have closed about 6,293 branches since January 2015, according to research by Which?.

This works out as almost two branches shutting every day for the past decade.

Barclays is the individual bank that has reduced its network the most, with 1,227 branch closures.

What to do if your local bank is set to close

If your nearest branch is closing, you should still be able to access banking services without going to another town.

For example you could check if there is a Post Office near you.

Here you’ll be able to do basic banking tasks, although you won’t be able to open a new bank account or take out personal loans or mortgages.

You can find your nearest Post Office branch by visiting postoffice.co.uk/branch-finder.

Many banks also offer a mobile banking service where they bring a bus to your area that offers services you can usually get at a physical branch.

Other banks use buildings such as village halls or libraries to offer mobile banking services.

You may want to contact your bank to see what mobile services they have available.

Another option is to check if there’s a super ATM near you.

These have been rolled out across the UK where branch closures have left residents unable to access essential banking services.

These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash.

Banking hubs are also being opened across the country with 250 set to be available by the end of 2025.