Lloyds Bank has said its packaged account customers will be able to use their debit cards abroad for no fee from July.

Silver and Platinum account customers will be able to use their card free of charge, anywhere around the world.

Silver accounts cost £11.50 a month, while platinum users are charged £22.50.

The move comes as Lloyds debit card data shows increasing customer demand for card spending overseas.

In the first three months of 2024, debit card spending on foreign currencies had reached 45.7 per cent of the total seen in 2023, with spending outside of the UK hitting 44.2 per cent of what was recorded for the whole of last year.

”We’re giving our customers one less thing to think about when they’re travelling, by introducing free unlimited worldwide debit card usage, with our range of bank accounts that come with additional benefits," said Helen Bierton, everyday banking director, Lloyds Bank. "No more transferring money between different accounts or using multiple cards– customers can simply keep using their debit card as normal when they’re overseas, whether that’s buying holiday treats or withdrawing cash.

"It’s a great addition to the benefits already offered with these accounts, including European or worldwide family travel insurance.”

Lloyds recently warned customers to be vigilant when booking their holiday after publishing figures revealing that online scams have risen seven per cent in the past year.

Research by Lloyds Bank found that people lose around £765 on average to holiday scams, with those ages 35 to 44 accounting for a quarter of victims.

Lloyds said that around half of holiday scams start via Facebook, including Facebook Marketplace, but fraudsters are increasingly using legitimate booking sites to obtain money from their victims including Airbnb and Booking,com.

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