Barclays axes £5 a month loyalty payment for Blue Rewards members

Barclays is axing its monthly loyalty bonus payments for Blue Rewards scheme members in a shake up of its rewards.

Blue Rewards members currently get a £5 a month cash bonus for paying at least £800 a month into their linked current account and paying out two direct debits.

But from 4 September, Blue Rewards members will no longer receive this cash bonus.

Barclays is instead replacing its cash rewards with free Apple TV+ (usually £8.99 a month) and a US Major League Soccer streaming service (usually £15 a month).

Barclays is scrapping its £5 loyalty payment for Blue Rewards members

Other monthly cash rewards for customers with Barclays mortgages, loans and life insurance are also being scrapped.

These include £5 for members with a a Barclays mortgage or life insurance policy including critical illness cover, £1.50 for those who have a life insurance policy without critical illness cover and £1 for those who have a loan with Barclays.

Is it worth keeping Blue Rewards now? 

Blue Rewards is a scheme for Barclays current account customers can opt into. It offers linked savings accounts and cashback benefits in exchange for a monthly fee of £5.

The £5 loyalty payment offset the cost of the monthly fee. Now, with it being axed, Blue Rewards members are effectively paying £60 a year for Blue Rewards 'perks'.

The perks that Blue Rewards is keeping include the linked easy-access 'Rainy Day' saver which pays 5.12 per cent on balances from £1 to £5,000.

The rate is 1.16 per cent on balances over £5,000 which is incredibly low in the current environment.

Outside of Barclays, savers can find easy-access accounts paying 5 per cent or more and will not have to pay £5 month for them.

Oxbury Bank currently has an easy-access account paying 5.02 per cent on balances starting from £20,000.

Meanwhile Monument Bank is offering 5.01 and Yorkshire Building Society pays 5 per cent interest.

> See This is Money's savings tables: Best easy-access accounts

Blue Rewards members can earn up to 15 per cent cashback from some retailers when using the debit card linked to their Blue Rewards account.

From 4 September until 30 November, Blue Rewards members can get 1 per cent cash bank on all debit card transactions up to a maximum of £5 a month.

Chase Bank already offers this for free with its current account and its cashback offer is capped at £15 a month.

You will need to pay a minimum of £1,500 a month into the account to get it.

Barclays said Blue Rewards account holders will receive benefits worth up to £44 per month, an increase from £35.50 previously if they use all the perks of Blue Rewards.

But unless you're a big American Major League Soccer fan or like Apple TV, it's unlikely the rewards will be worth it.