Lloyds vs. Barclays - How do they compare: fees, rates and features

Looking for a new bank account? Perhaps you’re tired of your current bank and are looking to switch. Or you might be new to the UK and want to open your first bank account.

You’ll have lots of options to choose from, as the UK has hundreds of banks and financial institutions. Here, we’ll focus on two of the UK’s biggest banks, Lloyds vs. Barclays.

We’ll pit these two banking giants against each other on the things that matter. This includes accounts, features, fees, security and much more.

We’ll also look at international transactions. This includes how much each bank charges in fees and interest rates for overseas transfers and travel spending. This can be a real deal breaker, especially if you travel a lot or have family in other countries.

We’ll even show you an alternative which could save you money - the Wise multi-currency account.

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But first, let’s get some background on both Lloyds and Barclays.

Lloyds vs. Barclays - An overview

Before diving into accounts, fees and everything else, it can be useful to know a little about each bank first.

Lloyds Bank is one of the oldest and largest banks in the UK, with a history dating all the way back to 1765. It’s part of the leading financial services company, Lloyds Banking Group.

It’s a retail bank, serving personal and business customers, as well as offering private and international banking.

While you can manage your money with online and mobile banking, just like pretty much every major bank these days, Lloyds also has a network of 1,000+ high street branches¹ in the UK.

Along with current and savings accounts, it also offers mortgages, loans, credit cards and wealth management services.

Now, onto Barclays. It’s another British banking giant, a universal bank dating back to 1690. The bank also operates globally, through Barclays International.

In the UK, Barclays serves both personal and business customers. It has a wide range of current and savings accounts, borrowing solutions, credit cards, investments and insurance.

The bank has over 1000 high street branches throughout the UK.² Although like other banks, it has been closing a number of branches in recent years. And as you’d expect from a major bank, Barclays also offers both online and mobile banking.

Lloyds vs. Barclays - Accounts

Lloyds Bank has a wide range of different current accounts to choose from, including:³

• Classic Account - a current account for free everyday banking, with an overdraft facility available if needed.
• Club Lloyds - an account with a monthly fee and extra rewards, including credit interest and an annual lifestyle benefit
• Silver - a perk-packed current account with a monthly fee, with benefits including European travel insurance, mobile insurance and breakdown cover.
• Club Lloyds Silver - an account package with a monthly fee, which combines all the best features of Club Lloyds and Silver
• Platinum - a step up from the Silver account, including benefits such as worldwide travel insurance, mobile insurance and breakdown cover, all for a monthly fee.
• Club Lloyds Platinum - with the highest monthly fee, this account includes all the best features of the Club Lloyds and Platinum accounts.

There are also special accounts for students and young people. All Lloyds accounts come with access to online and mobile banking, and a debit card as standard.

As for Barclays, it has just two current accounts available, neither of which have a monthly fee.

These are:⁴

• Barclays Bank Account - a standard current account featuring everything you’ll need for day-to-day banking. This includes an optional arranged overdraft if needed.
• Barclays Premier Current Account - a premium account offering extra benefits, including exclusive rates on mortgages and savings accounts. You’ll need an income of at least £75,000 to be eligible for this account.

Alongside these everyday banking products, Barclays also has student and graduate accounts, foreign currency accounts and a children’s account.

Lloyds vs. Barclays - Fees

One of the main things you’re going to be looking for in a new bank account is affordability.

So, let’s take a look at what Lloyds and Barclays charge for things like opening and managing an account. And just as importantly, whether there are fees for everyday services such as using your debit card.

Monthly fees

There are no charges to open an account with either Barclays or Lloyds.

Barclays doesn’t charge monthly fees for any of its accounts, but some of Lloyds premium accounts do come with a charge:³

Lloyds Bank account	Monthly fee
Classic	Free
Club Lloyds	£3 - waived if you pay in £2,000+ a month
Silver Account	£10
Platinum	£21
Club Lloyds Silver	£10 + £3 Club Lloyds fee (waived if you pay in £2,000+ a month)
Club Lloyds Platinum	£21 + £3 Club Lloyds fee (waived if you pay in £2,000+ a month)

Pricing/Fees correct as of 03-May-2023

Everyday banking fees

Even if you’ve got your eye on an account with no monthly fees, it’s still worth scouring the small print for other charges. You need to know whether you’ll be charged for things like using your debit card or making a transfer sending payments.

Here’s what you can expect to pay for everyday banking with Barclays and Lloyds:

Transaction	Lloyds Bank (Classic)⁵	Barclays (standard Bank Account)⁶
Faster Payments within UK	No fee	No fee
CHAPS payment	£30	Free - online banking £25 - branch/phone banking
ATM cash withdrawal (UK)	No fee (although some ATM operators may charge their own fee)	No fee (although some ATM operators may charge their own fee)
Debit card payments (UK)	No fee	No fee

Pricing/Fees correct as of 03-May-2023

Lloyds vs. Barclays - International money transfer

Want to use your new bank account to send money overseas? This can be an essential facility for people with family in other countries, or for those who work abroad or travel a lot.

Unfortunately, banks are not usually the cheapest way to make an international transfer - or the quickest. It’s crucial to check out the fees for foreign transactions, as you could find it prohibitively expensive.

Let’s run through what Lloyds and Barclays charge to send money overseas, focusing on both the upfront fee and the exchange rate.

International transfer fees

Lloyds Bank charges the following for transfers outside of the UK:⁵

• No fee for payments made in euros
• A flat fee of £9.50 to make payments in any other currency.
• There may also be correspondent bank fees of between £12 and £20, depending where the transfer is heading to.

To receive money from overseas, you’ll pay:⁵

• No fee if the payment comes from within the EEA and is in euros.
• For other currencies, it’s £2 to receive up to £100 from overseas, and £7 for amounts over £100.

In comparison, Barclays charges:⁶

• No fee for SEPA payments or Direct Debits. These are transfers made in EUR to EEA countries.
• £25 for all other international transfers, arranged via branch or telephone banking
• No fee for international transfers arranged via online banking.
• However, Overseas Delivery Charges may apply to all transfers.

Receiving money from overseas into your Barclays account costs nothing if it’s a euro payment from the EEA, or if it’s under £100. But get paid more than £100 and the fee to receive it will be £6.⁶

Exchange rates

When it comes to the overall cost of sending money overseas, it’s not just the transfer fee that matters. You also need to look closely at the exchange rate you’re offered.

Even if there’s no upfront fee, a poor exchange rate can mean less of your money arrives at its destination.

You can check whether you’re getting a good deal by comparing the rate you’re offered with the mid-market exchange rate. This is what banks use to trade currency with each other, and it’s known as one of the fairest rates you can get.

Both Lloyds Bank and Barclays are likely to add their own mark-up to the mid-market rate. This means you get a slightly worse rate for the currency conversion, and your recipient receives a little less at the other end.

Neither bank publishes its mark-up, as rates can change all the time. However, with both banks, you can check the latest exchange rates for your transfer before sending.

Wise: a cost-saving alternative for managing your money internationally

For a number of reasons, banks aren’t always the best option for sending money internationally.

This is partly because they use the SWIFT network to get your money across borders. This can be slow, and involve multiple banks - some or all of which may apply their own extra fee. What’s more, banks nearly always add a mark-up to the mid market exchange rate.

If sending and receiving international payments is something you’ll really need, Wise could be a cheaper alternative. You can send money worldwide with Wise for low, transparent fees. Best of all, you’ll always get the mid-market exchange rate with no costly margins on top. And never any hidden fees.

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Wise makes it fast, convenient and affordable to manage your money internationally. It’s ideal for travelling too, as there’s even a Wise card for spending just like a local.

_Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Lloyds vs. Barclays - Cards

Your new debit card will be essential for everyday spending, but some are better than others.

Both Lloyds Bank and Barclays offer a free contactless Visa debit card as standard with most current accounts.

Lloyds Bank offers an extra perk with its debit cards. You’ll get 15% cashback when you sign up with its Everyday Offers program and spend with selected retailers.⁷

Barclays has a similar offer, but only for Premier Current Account holders (who meet the eligibility criteria to open an account). With this account, you can get a black debit card with a boosted upper limit of £1,000 for cash withdrawals.⁸

Using your debit card overseas - withdrawal fees and limits

Both Lloyds Bank or Barclays allow you to use your debit card in countries outside the UK. You can use your card to make purchases, and to withdraw cash from ATMs.

It’s usually fee-free to use your debit card in the UK, but charges apply overseas. There may also be limits to how much you can spend or withdraw, per day or month.

Here are some of the key fees you need to know about for holiday spending with both Lloyds and Barclays:

Provider	Overseas ATM fee	Daily withdrawal limit	Overseas card purchases fee
Lloyds Bank	£1.50 + 2.99% foreign currency transaction fee⁵	£500⁹	£0.50 + 2.99% foreign currency transaction fee⁵
Barclays	2.99%⁶	£300 for personal accounts £1,000 for Premier customers (default limits - can be increased)¹⁰	2.99%⁶

Fees & limits correct as of 03-May-2023

If you’d rather swerve the fees, and get a better exchange rate at the same time, consider taking the Wise card with you on your travels. It automatically converts your money to the local currency at the mid-market exchange rate, for just a small conversion fee. Or if you already have the currency in your Wise account, it’s free.

Lloyds vs. Barclays - Security

Last but by no means least, we come to security. So, how safe is your money with Lloyds and Barclays?

The first thing to know is that both are fully regulated and licensed UK banks. They both also offer up to £85,000 protection under the Financial Services Compensation Scheme (FSCS). This ensures that even if either bank fails, your money will still be protected up to this threshold.

Lloyds offers all the high-level security features you’d expect of one of the UK’s biggest banks. This includes built-in security in the Lloyds Bank mobile app, a solid Fraud Guarantee and secure biometric account access.

Barclays also uses sophisticated technology and procedures to protect you and your money.

Plus, it has a guarantee for online and mobile banking, where it’ll refund any money stolen by fraudsters as long as you’ve taken reasonable steps to keep your account safe.¹¹

So which is better - Lloyds or Barclays?

It all depends what you’re looking for in a bank and a new account, but Lloyds and Barclays are pretty similar.

Both offer online and mobile banking, and a wide choice of accounts. This includes some with rewards and extra benefits. You’ll need to pay a monthly fee to access these with Lloyds, while with Barclays you’ll need to meet stricter eligibility requirements.

You’ll find both banks a little costly for spending and withdrawing cash abroad. So if this is a service you need, make sure to check out Wise. With low fees and fair exchange rates, it could save you a bundle on international transfers and holiday spending.

Check out Wise today 😍

Hopefully after reading this guide, you’ll have all the info you need to compare the two - and other providers - and find the right bank for you.

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Sources used:

1. Lloyds Banking Group - Who We Are
2. Scrape Hero - Location reports - Barclays UK
3. Lloyds Bank - Current Accounts
4. Barclays - Current Accounts
5. Lloyds Bank - Classic Account fee information document
6. Barclays - Fee Information for Barclays Bank Account
7. Lloyds Bank - Classic Account
8. Barclays - Premier Banking - Current Accounts
9. Lloyds Bank - Personal banking terms and conditions
10. Barclays - Using cards - ATM limit
11. Barclays - Online and mobile banking guarantee

Sources last checked on date: 03-May-2023