Lloyds and Bank of Scotland, both part of Lloyds Banking Group, have announced the removal of foreign debit card fees for student account holders, effective from July 30, 2026. This change means students will no longer face the current 2.99% non-sterling transaction fee or the 50p flat charge for each overseas purchase. Cash withdrawals outside the European Economic Area (EEA) currently incur a 2.99% currency conversion fee plus a £1.50 charge, which will also be waived.
New Student Account Benefits
Students who open a new Student Account or switch an existing account between July 30 and October 30, 2026, can enter a cash prize draw for a chance to win a year's worth of tuition fees. The accounts come with no monthly fee, an interest-free arranged overdraft of up to £1,500 in years 1 to 3, and up to £2,000 in years 4 to 6. Additionally, account holders can earn cashback on everyday spending with selected retailers and access the bank's highly rated app, used by 10 million customers, with 24/7 secure in-app support.
Impact on Students
This move is a significant win for thousands of students who frequently travel or study abroad. A Lloyds Banking Group spokesperson confirmed: "From 30 July 2026 enjoy no debit card fees from us when you use your card abroad. We’re rated 5 stars by Moneyfacts for ease of opening a current account." Students must be aged 17 or over or have a 4-digit UCAS code confirming their place on a course to apply. Only one student bank account is allowed at a time, but other types of accounts may be opened separately.
Branches in Birmingham
Both banks have branches in Birmingham, making the new policy accessible to local students. The change aligns with broader trends in the banking sector to reduce fees for younger customers and enhance digital banking services.
