Lloyds Bank will discontinue its Select current account on Friday, 31 July 2026, automatically migrating all existing holders to a Classic account. The switch removes the account's key benefit: a £50 interest-free overdraft buffer.
Changes effective from July 31
The bank has begun notifying customers of the upcoming change. From 31 July 2026, Select account terms and conditions will cease, and the Classic account will take effect. The Classic account does not offer the £50 interest-free amount on arranged overdrafts; instead, daily interest will be charged on any arranged overdraft borrowing.
Lloyds stated: 'From 31 July 2026, we are changing the Select account to a Classic account. The Classic account doesn’t offer a £50 interest-free amount on arranged overdrafts and daily interest will be charged on any arranged overdraft borrowing.'
Overdraft costs explained
Customers currently benefit from a representative 29.9% EAR (variable) on arranged overdrafts, with interest rates determined by individual account management and credit information. There are no unarranged overdraft fees or charges.
Using the current Select account, borrowing £500 would cost £2.24 for 7 days, £9.60 for 30 days, and £19.44 for 60 days. However, these figures include the £50 interest-free amount. After migration to Classic, the interest-free amount disappears, meaning overdraft costs will be higher for periods extending beyond 30 July 2026.
Lloyds advises: 'Please note: This example currently shows the cost including the £50 interest‑free amount. After the Select account is changed to a Classic account on 31 July 2026 there will be no interest-free amount, so if the number of days shown goes beyond 30 July 2026, the actual overdraft costs will be higher than what the example shows. To see what your overdraft costs would be without an interest-free amount, use the cost calculator and select Classic.'
Alternative accounts available
For customers seeking additional benefits, Lloyds offers Silver and Platinum accounts. These packaged accounts include all Select account features plus extra perks for a monthly fee. The Silver and Platinum accounts charge a monthly maintenance fee but provide extras such as travel insurance, breakdown cover, and mobile phone insurance.
Lloyds operates branches across the UK, including in Birmingham, and competes with Santander, HSBC UK, NatWest, and Nationwide. Customers affected by the Select account closure have until 30 July 2026 to utilise the £50 interest-free overdraft benefit before it is withdrawn.
