BARCLAYS will increase the fee for customers on its Blue Rewards scheme by a third from £3 to £4 this summer.
The bonus scheme is an add-on to Barclays current accounts which offers up to £7 per month in cashback if you meet certain criteria, or even more if you have a mortgage or insurance at the bank.
AFP or licensors Barclays is about to hike the fee of its Blue Rewards scheme by a third
Some will also earn more than that if they switched an account to Barclays when it was running a promotion offering double rewards for a year.
The fee will increase to £4 from July 1, but as it’s paid in arrears, customers will be hit with the price hike from August 2.
It means someone earning £7 a month from the scheme will see their yearly earnings drop from £48 to £36.
Barclays declined to say how many of its customers are using the scheme when contacted by The Sun.
Reuters You can currently get up to £7 in cashback each month
A spokesperson said: “Since we launched Barclays Blue Rewards four years ago, we’ve added new cash rewards and have plans for more benefits soon.
“In view of this, we are changing the price from £3 to £4 a month.”How does Barclays Blue Rewards work?
The bonus scheme offers new and existing customers perks and cash rewards for banking online or using the bank’s app.
Once you’re signed up to the scheme, you’ll get a £7 reward each month if you:
Pay the monthly fee
Pay in at least £800 to your account each month
Have at least two direct debits going out of your account per month. If you only have one direct debit, you’ll get a £3.50 bonus
If you have certain Barclays products alongside your current account, you’ll get even more cashback.
For example, if you have a mortgage with the bank, you’ll earn an extra £5 a month.
Taking out home insurance nets you £3 more a month, while a personal loan will only give £1 per month.
Blue Rewards also gives you an extra 1 per cent cashback at various retailers such as Boots, B&Q and Next.
If you already pay at least £800 into a Barclays current account and have two direct debits, it’s still worth opting for the Blue Rewards scheme, as you’ll be earning money on it even if the bonus has dropped.
Yet it’s unlikely to be worth switching to Barclays only for these rewards – as always, shop around first to see what other banks are offering.
You can check out our round-up of the best current accounts for your salary here.
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In September, Barclays admitted it incorrectly told tens of thousands of customers they were not entitled to compensation for mis-sold payment protection insurance.
Meanwhile, as of December, customers of the banking giant can turn off spending at shops to help with mental health and gambling problems.
Customers with Barclays can now also add accounts from rival banks to their app.
Family-of-five say they were forced to rely on food banks after Barclays ‘error’ left them £1.5MILLION overdrawn
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