Lloyds starts to close its Lloyds Duo Avios and Lloyds Avios Rewards American Express cards
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Lloyds Bank is sending out letters to holders of the legacy Lloyds Duo Avios credit cards announcing that the cards are closing in 2-3 months time. The exact date was not given.
This is the first stage of a process. Letters will be following to holders of the Lloyds Avios Rewards American Express and Mastercard double pack.
The Lloyds Duo Avios American Express and Mastercard package will be replaced with a new Lloyds Avios Rewards Mastercard. There will be no American Express element.
I have been told that existing Lloyds Avios Rewards Amex and Mastercard holders will be moved to the same product although, until we see that letter, this isn’t certain. My understanding is that, for Lloyds Avios Rewards cardholders:
the upgrade voucher is dead (you will be allowed to earn one for your current card year)
there will no longer be an annual fee
there will be foreign exchange fees
However, this is an article for another day when we see the first of the letters. Today I want to focus on how the changes impact holders of the Lloyds Duo Avios credit cards.
This is the earnings rate on the new Lloyds Avios Rewards Mastercard:
0.4 Avios per £1 you spend in the UK
0.8 Avios per £1 you spend outside the UK
0.4 Avios per £1 transferred on a balance transfer
Because the Mastercard element of the old Duo Avios cards was so poor, this actually represents an improvement. You currently get 0.2 Avios per £1 on the Mastercard in the UK and 0.4 Avios per £1 elsewhere.
The big drop is on the balance transfer rate, which was previously 1.5 Avios per £1. A lot of readers did exceptionally well from this offer, because Lloyds would often have periods when there was no balance transfer fee. You could move a balance for free from another credit card, pick up 1500 Avios per £1000, and then immediately pay off the amount before any noticeable interest was incurred!
Based on the leaked information we saw recently, I would expect that holders of a Club Lloyds current account will earn an extra 0.1 Avios per £1 (0.2 Avios per £1 for foreign transactions). This takes you up to 0.5 Avios per £1 for UK spending and 1 Avios per £1 for foreign spending. For this to kick in, you must have had a Club Lloyds current account for at least six months.
And if you had the £50 fee premium version?
I don’t know. I haven’t heard from a reader who had that version. I would imagine that the premium card is being scrapped and that everyone is being moved to the free version outlined above. This would mean the end of the 2-4-1 voucher, although that is not a major loss as it was restricted to Economy travel. This is only an educated guess at this stage.
Is the card worth keeping as a Mastercard?
If you want to earn Avios, yes. It is more generous than the Tesco Clubcard Mastercard (0.3 Avios per £1). The HSBC Premier cards are better (0.5 Avios per £1 on the free card, 1 per £1 on the paid card) but HSBC Premier has tough income and asset criteria and requires you to have a current account with them.
However ….. if you are happy to walk away from Avios, you can’t beat the new Virgin Atlantic Mastercard. The free card has a 5,000 mile bonus and offers a whopping 0.75 miles per £1 – almost double what the new Lloyds Avios card earns. The annual fee card has a 15,000 mile bonus and offers 1.5 miles per £1.
What is the best replacement American Express card?
If you have been using the American Express element of the Lloyds Duo Avios cards for your daily spending, you will need a replacement. Assuming that you want to keep earning Avios, here are your FIVE options ranked in order of sign-up bonus:
American Express Platinum Sign-up bonus: 30,000 Amex Membership Rewards points = 30,000 Avios
(£450 per year, earns 1 Avios per £1, my Amex Platinum review)
British Airways Premium Plus American Express Sign-up bonus: 25,000 Avios
(£195 per year, earns 1.5 Avios per £1, representative APR 76.0% variable including £195 fee based on a notional £1200 credit limit, my BA Premium Plus review)
American Express Preferred Rewards Gold Sign-up bonus: 20,000 Amex Membership Rewards points = 20,000 Avios
(free, earns 1 Avios per £1 with a 10000 point bonus for spending £15000 in a year, representative APR 57.6% variable including the annual fee (free in year 1) based on a notional £1,200 credit limit, my Amex Gold review)
Starwood SPG Amex Sign-up bonus: 30,000 points = 10,000 Avios
(£75 per year, earns 1 Avios per £1 jumping to 1.25 Avios per £1 if you convert in chunks of 60,000 points, representative APR 39.7% variable including fee based on a notional £1200 credit limit, my Starwood Amex review)
Amex Rewards Credit Card Sign-up bonus: 0 – 10,000 Amex Membership Rewards points = 0 – 10,000 Avios
(free, earns 1 Avios per £1, APR and sign-up bonus depends on which of the three versions you get, my Amex Rewards review)
In my view, these are the best two options:
British Airways Premium Plus American Express – the No 1 attraction is the 2-4-1 voucher that you receive for spending £10,000 each year. This is valid on Avios redemptions in ALL classes and saves you, for eg, 150,000 Avios on two Club World peak day tickets to San Francisco. Coupled with a high earnings rate, all serious Avios collectors should have one of these.
(If you travel solo, though, ignore it as the 2-4-1 has no value to you. Similarly, if you cannot spend £10,000 per year on the Amex to trigger the voucher then look elsewhere and save £195. You also need to be certain that you can generate enough Avios per year to use the 241 voucher effectively – although reading HFP will make that easier!)
American Express Preferred Rewards Gold – this card offers the most generous sign-up bonus for a free card. You receive 20,000 Amex points for signing up (=20,000 Avios) and there is no fee for Year 1 (£140 thereafter). You also receive two Lounge Club airport lounge passes among other benefits.
These cards work well if you fall into a specific niche:
British Airways American Express – the free BA Amex has a decent (for a free card) rate of 1 Avios per £1. However, do not get this card if you are planning to spend the £20,000 required to earn the 2-4-1 voucher – this article explains why the free BA American Express card can be a bad deal.
American Express Platinum – you should consider applying for this card if you think you can get value from the travel benefits. Focus on the 30,000 Avios sign-up bonus, the Priority Pass for airline lounge access, Eurostar lounge access, the Starwood hotels Gold card (which also gets you Marriott Gold following the merger), Hilton Honors Gold, Shangri-La Jade, Melia Rewards Gold and the Radisson Rewards Gold cards. Many people find that they end up keeping the card despite their initial intentions because of the value of the travel insurance, lounge access and other perks. For day to day spending, 1 point (= 1 Avios) per £1 is a bit of a joke considering the annual fee.
Starwood SPG American Express – the day-to-day earnings rate of 3 points (= 1 Avios) per £1 isn’t bad and you get the flexibility to convert to 40+ different airlines as well as using your points for Starwood or Marriott hotels. You also get an enhanced conversion rate of 1.25 Avios per £1 when you convert in chunks of 60,000 points. The sign-up bonus is 30,000 points, which converts to 10,000 Avios. The £75 annual fee is refunded pro-rata if you cancel. For long term use, this card would be exceptional if it was free but the £75 fee curtails its value.
Amex Rewards Credit Card – this is the only ‘free for life’ Amex card which earns Membership Rewards points. You get 1 point per £1 and these convert 1:1 into Avios BUT you can also use them for other airline schemes or transfers to Hilton, Radisson and SPG / Marriott. This card is better than the free British Airways American Express if you won’t spend £20,000 to trigger the 2-4-1 voucher because, whilst both are free and earn 1 Avios per £1, Amex Rewards gives you alternative reward options. The downside of the Amex Rewards Credit Card is that holding it stops you getting a sign-up bonus if you take out an Amex Gold or Amex Platinum card.
PS. If you are reading this but are not a regular Head for Points visitor, why not sign up for our FREE weekly or daily newsletters? They are full of the latest Avios, airline, hotel and credit card points news and deals to improve how you travel. To sign up, visit this page of the site or click any of the ‘Subscribe’ links on this page. Thank you.

Want to earn more points from credit cards? – February 2025 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard
Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus
30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express
50,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard
18,000 bonus points and 1.5 points for every £1 you spend Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers:

American Express Business Platinum
50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold
20,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Pro Visa
10,500 points (=10,500 Avios) plus good benefits Read our full review

Capital on Tap Visa
NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

British Airways American Express Accelerating Business
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback when you spend at least £2,000 per month.

Barclaycard Select Cashback Business Credit Card
Get 1% cashback when you spend at least £2,000 per month* Read our full review
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