Compare Packaged Current Accounts

Packaged bank accounts are usually bank accounts that come with a variety of added ‘extras’ and charge a monthly fee to customers. The extras included in packaged bank accounts are usually insurance products and they can also include ‘perks’ such as interest-free overdrafts or low-cost foreign currency when travelling abroad.

Each packaged account offers different extras, so it’s important to check the details and the exclusions with your provider.

This varies widely between accounts, but some of the extras that are often offered through packaged bank accounts include:

Do check the level of cover for the insurance products and the exclusions or conditions on the ‘perks’. Some packaged accounts only offer things like cashback for people that fulfil certain criteria, such as never using an overdraft or paying in a minimum monthly amount.

Whether you would actually be better off taking out a packaged bank account is not always easy to calculate. The best way to check is by totting up the value or savings made through the extras offered and seeing if they are worth the total paid each year in fees.

People who travel internationally with their family may find the travel insurance offered with a packaged account is convenient, while those with expensive mobile phones may appreciate the phone cover. If you drive as well, you could benefit from the breakdown cover product offered. However, it is unlikely that you would make savings financially unless you actually use these insurance products regularly.

If you are interested in a packaged bank account because of the insurance products, take time to check that they offer you the level of cover you require. Also, check that you are not already covered by other policies you have taken out.

Claims made on the insurance products also often carry excess charges, which can be expensive, so this is worth checking as well.

You will usually have to pass a credit check to be offered a packaged bank account and you will also have to pay the monthly fee charged to the account.

You may be able to make a claim against your packaged account provider if you feel you were mis-sold the product when you first opened the account. Some people feel they were sold the products dishonestly or made to feel they had no choice. Others were sold accounts offering perks they could not avail themselves of, as they were too old to claim, for example.