The banks customers, including those with credit card debt, could generate an income of £1.79 million from the scheme.
Nick White, director of financial services at price comparison and switching website uSwitch commented on what he said has been a “turbulent week” for banks, noting that industry analysts are beginning to predict the end of free banking.
Research firm Defaqto claimed free banking for those with credit card debt and other consumers could disappear over the next two years as banks hit out against regulatory pressures.
“Lloyds TSB’s latest move sends alarm bells ringing and indicates that consumers may also lose the luxury of fee-free credit cards in the very near future,” Mr White added.
The bank claims the fee will apply to just one per cent of their credit card customers that ‘display low usage’, but its has not outlined the criteria that are used to define this term.