Lloyds Bank Offers Customers Exclusive Two-Year Fixed Energy Tariff
Lloyds Bank is providing its customers with access to a two-year fixed energy tariff through its banking app, offering a potential cost-saving measure as energy prices are set to increase.
Lloyds Bank customers can now access an exclusive two-year fixed energy tariff from Eon Next through their banking app. The offer, available in the Bill Switcher section of the app's Rewards Hub until October 12, aims to help customers manage rising energy costs.
The tariff fixes annual energy costs at £1,697 for an average household paying by direct debit. This rate is £26 lower than the energy price cap set to rise to £1,723 for the average dual-fuel household on October 1. However, the fix applies to the unit price of energy rather than the total bill, meaning higher usage will result in higher overall costs.
With predictions from energy market analyst Cornwall Insight suggesting a further 16% increase in the price cap by January, potentially reaching £1,999 annually, fixed tariffs are becoming increasingly attractive. The exclusive Eon Next tariff offers potential savings of £302 against this January prediction, while other deals, such as an 18-month fix from Fuse Energy, could save up to £324 annually.
For customers who have not fixed their energy deals in over a year, they are likely on variable tariffs that track the energy price cap. The upcoming increases to the cap, both in October and a projected larger hike in January, make comparing current deals a prudent financial step.
Beyond the energy deal, Lloyds Bank is also offering incentives for switching to its Club Lloyds rewards account, including £200. This account has a £5 monthly fee, which is waived if customers deposit at least £2,000 monthly. The Rewards Hub also provides other benefits such as cashback at selected retailers and entry into prize draws, including a monthly draw for £2,026 for eligible customers who deposit £1,000 monthly and activate the offer.
When evaluating energy tariffs, it is advisable to consider the unit cost of energy and estimate personal energy usage to determine the true cost of a fixed deal. The energy market remains volatile, with prices influenced by geopolitical events, and suppliers' confidence in long-term price predictions is generally low.