The bank’s referral scheme is set to appeal to a wide audience. Existing Lloyds customers can earn up to £250 per year by referring up to five friends or family members, while new customers can benefit by opening an account through the referral link. The offer is designed to be simple, efficient, and beneficial to both parties. According to Lloyds, this initiative is part of their ongoing efforts to enhance customer experience and grow their market share.
How the Refer a Friend Scheme Works
To participate, existing Lloyds customers must have a qualifying current account. This includes most accounts but excludes Student, Under 19s, and Smart Start accounts. The customer can then use the Lloyds mobile banking app to generate a referral link, which can be shared with friends and family members. For each successful referral, both the referrer and the referee (the new customer) will receive £50.
The process for the new customer is straightforward. They must be a first-time Lloyds account holder and use the referral link to open a new current account. After the new account is activated, the new customer must keep the account open for at least seven days to ensure the referral reward is paid. Payments will be made within 30 working days of the account being opened, appearing as a “cash credit” in both the referrer’s and the new customer’s accounts.
According to the terms outlined by Lloyds, there is no limit on the number of people a customer can refer. However, the maximum reward the referrer can receive is £250 per calendar year. This means customers can refer up to five people, each earning £50, to reach the £250 cap. This structure ensures that loyal customers are incentivised to continue spreading the word while maintaining the simplicity of the programme.
Restrictions of the Offer
Once the referral link has been generated, it remains valid for 30 days. If the link expires before being used, the referrer can generate a new one. However, if the link is expired when used, neither party will receive the reward. Lloyds has stressed that the offer is subject to change, and they reserve the right to withdraw it at any time. Additionally, if any fraudulent activity or breach of the terms and conditions is suspected, payments can be reversed or refused.
Lloyds is careful to remind customers that opening an account does not automatically guarantee an arranged overdraft. Overdraft applications are subject to status, meaning the new customer must meet additional criteria to be approved for an overdraft.
Lloyds’ “Refer a Friend” offer is not just a way for the bank to grow its customer base, it also reflects a broader trend of customer-centric financial services. With many banks offering similar referral programmes, Lloyds is tapping into the power of word-of-mouth marketing, which can be highly effective in a competitive banking environment. By rewarding both existing and new customers, Lloyds is fostering a sense of community while incentivising customers to actively engage in the bank’s growth.
