Lloyds Bank has reportedly decided to stop charging monthly overdraft management fee on Islamic accounts, as part of its strategy to attract more customers.
A booklet has been dispatched to customers this month explaining changes to its personal banking services and new charges, The Telegraph reported.
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The document stated: "We are removing the Monthly Overdraft Management Fee of £6 from our Islamic Account, Islamic Student Account and Islamic Graduate Account. So, if you use an Unplanned Overdraft on these accounts there won’t be any charges."
A Lloyds spokesman told the publication that Islamic accounts have been designed for customers who cannot receive or pay interest under Sharia, but these are also available to anyone, regardless of their religion.
"Our focus has always been on meeting the needs of UK businesses and personal customers.
"These accounts are structured differently to our traditional accounts and do not offer credit interest or other features that are available on our other products. A comparison with the overdraft charging structure on other accounts is meaningless," spokesman added.
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