If you had the old Lloyds Avios Rewards American Express or Lloyds Duo credit cards, you have probably been switched to the new Lloyds Avios Rewards Mastercard by now. If not, it will happen very soon.
For clarity, before you read on – the Lloyds Avios Rewards Mastercard is NOT available to new applicants. There are no Avios-earning Lloyds Bank credit cards available to new applicants.
What are you earning on your Lloyds Avios Rewards Mastercard?
There were a lot of changes from the old American Express / Mastercard double pack:
- the upgrade voucher is dead – the new Mastercard has no ‘long term spend’ bonus
- there is no longer be an annual fee, saving £24
- there IS now a foreign exchange fees of 3%
This is the earnings rate on your 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 Avios Rewards cards was so poor, this actually represents an improvement. You used to get 0.2 Avios per £1 on the Mastercard in the UK and 0.4 Avios per £1 elsewhere.
A lot of people missed the small print about Club Lloyds …..
There is an interesting bit of small print attached to the earnings rates above.
Holders of a Club Lloyds current account earn an extra 0.1 Avios per £1 (0.2 Avios per £1 for foreign transactions).
This means that a Club Lloyds accound holder gets:
0.5 Avios per £1 you spend in the UK
1.0 Avios per £1 you spend outside the UK
0.4 Avios per £1 transferred on a balance transfer
For this to kick in, you must have had a Club Lloyds current account for at least six months.
Why are we mentioning this today?
At present, there is a generous incentive available for opening a Club Lloyds current account.
Take a look at the Club Lloyds website here.
Until 5th November, Club Lloyds will give you £125 if you move your current account to them.
This applies to both the standard account and the Platinum version. Note the terms and conditions which are lengthy.
Technically, the standard account has a £3 monthly fee whilst the Platinum account has a £22 monthly fee. However, the fee for the standard account is waived if you pay in £1,500 per month.
The benefits are not bad, assuming you pay in enough to get the fee waived:
annual benefit of either 6 cinema tickets, an annual magazine subscription, or annual Gourmet Society membership
1% credit interest on balances up to £4,000 and 2% on balances between £4,000 and £5,000 as long as you have two direct debits set up on your account (you would receive £60 per year if you kept at least £5,000 in your account at all times)
The fee for the Platinum account is reduced to £19 per month if you pay in £1,500 monthly. The benefits here look OK but you may already have most of them:
worldwide travel insurance, valid up to 80 years of age (appears comprehensive)
AA breakdown cover
mobile phone insurance
…. plus the benefits of the standard account listed above.
Plus the extra Avios …..
What isn’t mentioned in the benefits above is the additional Avios earned on your Lloyds Avios Rewards Mastercard for having a Club Lloyds account.
If you are spending £2,000 per month on your Mastercard, you’d be earning an extra 200 Avios per month as a Club Lloyds account holder. This clearly isn’t lifechanging but is better than nothing.
If you use your Lloyds credit card abroad – not recommended due to the 3% fee, but perhaps your employer is paying – you will do even better due to the extra 0.2 Avios.
You can find out more about the £125 switching bonus on the Club Lloyds website here.
Want to earn more points from credit cards? – January 2022 update
If you are looking to apply for a new credit or charge card, here are our January 2022 recommendations based on the current sign-up bonus.
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals.
There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.
British Airways American Express
10,000 Avios for signing up (SPECIAL OFFER) and an Economy 2-4-1 voucher for spending ….. Read our full review
British Airways American Express Premium Plus
40,000 Avios (SPECIAL OFFER) and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee 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.
The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.
The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
45,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
30,000 points bonus – the most generous Avios Visa for a limited company 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 on your spending.
Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.