Barclays axing key benefit to customers - Should you keep it?

Cash payment rewards given to hundreds of thousands of customers of the Barclays ‘Blue Rewards’ loyalty scheme are being scrapped.

Instead, customers will receive a free subscription to Apple TV+ and access to streaming of football matches in the USA, which is unlikely to offer the same appeal.

Now the moneysavingexpert.com (MSE) team has advised: “The changes mean most should ditch the scheme from Wednesday, September 4.”

MSE said: “Many will have joined Blue Rewards in order to get the exclusive 'Rainy Day Saver' easy-access account that comes with it.

“That account pays 5.12 percent interest on up to £5,000. When it launched in 2022, it smashed the next-best rate of 2.5 percent and was popular with MoneySavers – yet these days the top standard easy-access savings pay 4.85 percent, and you can get up to 5 percent on smaller amounts.”

In a series of radical changes to the loyalty scheme the perks being removed include a £5 a month cash reward for paying out two Direct Debits each month, which effectively covered the monthly fee for signing up to the account, which adds up to £60 a year.

Also going are all other cash rewards for holding a Barclays mortgage, loan or life insurance policy.

Perks being added to the deal include Apple TV+ subscription, which is normally £8.99 a month, but can often be had for free; and access to TV streaming of Major League Soccer from the USA and Canada, which would cost £12-£15 a month for those interested in football across the Atlantic.

There will be 1 percent cashback on debit card spending up to £500 a month, which is worth £5, however this will be withdrawn from November 30. By comparison, customers can earn more elsewhere with, for example, Chase paying up to £15 a month with no account fee on an ongoing basis.

Perks staying the same include Rainy Day Saver account paying 5.12 percent AER variable on up to £5,000. However, MSE said: “If you factor in the now unavoidable £60 a year fee, this effectively becomes 3.83 percent on £5,000 saved (or even lower if you're saving less.”

It said rivals such as Santander-owned Cahoot offer a more favourable interest rate of 5 percent on savings of up to £3,000, while other banks are paying at least 4.85 percent on larger sums.

Also staying is in an offer of up to 15 per cent debit card cashback at certain retailers. However, this is not unique as others, such as Halifax, Lloyds, Monzo, Santander and Virgin Money, all run similar schemes.

MSE said the shake-up to the loyalty scheme means it no longer offers the best value when set against other options, adding “these perks are unlikely to be worth paying £60 a year for”.

However, it adds: “If you really like Apple TV+ and can't get it cheaper, or you'd normally pay full price for Major League Soccer streaming, the revamped Blue Rewards is still a good deal, as you'll effectively be getting both at a major discount (with the other perks as a bonus).”

Barclays said it is making the changes in order to "reflect what its customers value".

In 2022, the bank reduced the monthly cash payments paid to its Blue Rewards members, while in 2021 it forced users to register for online or app banking to remain members.

The bank said that it will automatically remove membership and the £60 annual fee from March 2025, if customers who have activated at least one of the "core" Blue Rewards features – determined as the Rainy Day Saver, Saver, cashback, Apple TV+ – and are not earning at least £60 in value over the year.