Packaged bank accounts can provide excellent value with helpful extra benefits , but if you make a mistake, you might lose money
Packaged bank accounts may offer advantages, but it's crucial to confirm that these benefits are ones you will truly utilize and that they outweigh the drawbacks so that you can justify the investment.
If the price is right, a packaged bank account could be a great choice for you and your finances. It is a current account where you pay a monthly fee in exchange for a number of extras.
Travel, home, mobile phone, and gadget insurance, auto breakdown coverage, cashback, increased savings rates, reduced overdrafts, and monthly freebies are among the benefits that are available for an average fee of about £15. It is worthwhile to compare rates and find a package that works for you because the monthly payment amount will vary depending on the bank and account you select.
The best bank accounts that are currently packaged are compiled here.
The finest bank accounts in a package.
Members of Virgin Money Club M.
Monthly fee: £12.50 (150/year).
What you get: UK breakdown coverage for account holders, family mobile phone and device insurance, international family travel insurance (up to age 74), and 1% interest on balances up to £1,000. Pros:
Family members' devices that reside at the same address are covered by mobile phone and gadget insurance. You are only allowed to make two mobile and two gadget claims in a 12-month period, and each device is covered up to 2,000.
Travel insurance that includes wedding, golf, and winter sports coverage for you, your spouse, and up to four children under the age of eighteen who live at the same address.
A portion of the monthly cost might be recovered with the 1 percent interest. Additionally, you can earn 2.5 percent AER on savings amounts up to £25,000 in the associated Club M Saver account. On balances over 25,000, this equates to 2 percent. Three months from now, interest is paid.
Cons:
Be mindful of the overdraft rate, which can reach 39.9% APR. Check out Virgin Money's overdraft calculator to learn more about the possible expenses.
Check out the Co-op Bank Everyday Extra, which is a deal.
15 per month (180 per year) is the fee.
What you get: UK and European breakdown coverage for account holders, global family travel insurance (up to age 79), and mobile phone coverage for account holders.
Pros:
The oldest age limit of any packaged account we've seen is for the travel insurance, which also covers winter sports and golf (although the age limit for those drops to 64 years). You can open a joint account or a sole account.
Debit card users can participate in a promotion to win up to £2,500 in cash that will be deposited directly into their accounts just by using their cards.
Cons:
Just the account holder or holders are covered by mobile phone insurance.
Nationwide FlexPlus: View Deal Nationwide FlexPlus.
Cost: £18 per month.
What you get: UK and European breakdown coverage for account holders; family mobile phone insurance; and international family travel insurance for trips up to 31 days (up to age 69 or 70+ if you pay a 65 per year upgrade).
Pros:
Most winter sports are covered by international family travel insurance.
All family members who reside at the same address are covered by the phone insurance, which allows for up to four claims annually at a maximum of £2,000 per claim. Other package account providers will stop your coverage after a certain age, but the option to continue the plan after you turn 70 is also a great perk, even though it does have a cost.
Additionally, until March 31, Nationwide is offering 175 free cash to customers who move to one of its Flex current accounts. To find the best switch deals, consult our guide.
Cons:
If you're prone to going overdrawn, this isn't the account for you because Nationwide charges 39.9% APR on that amount. In addition, the Building Society increased the FlexPlus current account fee by £5 per month in December, so if you're already a member, it's worth making sure you're taking advantage of its benefits.
See Halifax Ultimate Reward Deal Halifax Ultimate Reward.
Cost: £19 per month, £228 annually.
What you get includes UK breakdown coverage for account holders, home emergency coverage up to 250 per claim, international family travel insurance (under 71), and mobile phone insurance for account holders up to 2,000.
Moreover, you can select from the following additional benefits if you pay 1,500 or more each month, maintain credit, and spend 500 on your debit card or maintain a minimum balance of 5,000 in your account: five dollars per month in cash, three digital magazines, and a complimentary movie ticket.
Advantages: This account may provide good value if you want both other insurance and home emergency coverage. Winter sports and golf are covered by the travel insurance.
Additionally, consumers can use their debit cards overseas without incurring fees.
The account holder is the only person covered by the phone insurance; family members are not. You are only allowed to make two claims annually.
This account is the most costly unless you are able to receive the five cashback, which requires a lot of work. You have to decide whether you want to keep a balance of 5,000 in your account or spend £500 on your debit card each month. The only time you can alter your choice is after a year.
Check out this offer for the Club Lloyds Silver Account.
In addition to a three-month Club Lloyds fee, the monthly fee is 11p50 (138/year).
If you deposit at least £2,000 into your account each month, you can avoid paying the three-month Club Lloyds fee.
The monthly account fee will rise from three to five starting on June 2. When qualifying requirements are met, customers can still earn up to 90 in credit interest annually, and this account fee will remain waived if 2,000 or more is paid each month.
What you get: free international purchases, up to 15% cashback at select stores like Sainsbury's, Costa, and Just Eat; UK roadside breakdown family coverage; European and UK family insurance (up to age 65); and mobile phone insurance for both sole and joint account holders.
Pros:
UK vacations, golf equipment, and winter sports are covered by travel insurance.
The lifestyle rewards include a complimentary 12-month subscription to Disney Plus, six movie tickets, a digital membership to the Gourmet Society or Coffee Club, or a subscription to a magazine each year.
When customers switch to one of three accounts, including Club Lloyds Silver, Lloyds is currently offering them 175 pounds.
Cons:
Only the UK and Europe are eligible for the family travel insurance.
Only the account holder and their spouse are covered by the travel insurance until they turn 65.
During a 12-month period, each account holder may only submit two successful mobile phone insurance claims.
Check out the Monzo Max Deal.
Cost: £17 per month, or £24 annually.
What you get: Travel insurance for the entire world, phone insurance (up to £2,000 for phones), breakdown coverage for the UK and Europe, and access to Monzo's instant access savings pots and cash ISA, which return 3point 85 percent AER variable.
Pros:
This package account offers a higher rate than most high-street banks and includes both a savings account and a cash ISA, in contrast to the other packages.
Every year you are given a free Railcard.
Greggs offers a free treat every week.
Up to 600 can be taken out fee-free every 30 days while you're overseas. If you also invest with Monzo, you pay a fund fee of 0.14 percent and a discounted platform fee of 0.35 percent, which is typically 0.45 percent.
Additionally, you can use the card overseas without incurring fees.
Cons:
Only the account holder is covered by mobile phone and travel insurance. Each policy will cost an additional £5 per month if you want family coverage for both.
Only if you plan to utilize all of the benefits offered by this account will the higher monthly fee make it worthwhile.
Check out the deal now.
A few things to think about before opening a packaged bank account.
Enticing extras may be offered by packaged bank accounts, but before opening an account, make sure all the factors are taken into account to make sure the benefits outweigh the costs.
Examine all offered insurance policies carefully. If travel insurance is offered, confirm that you qualify for it by being within the age range and not having any pre-existing medical conditions that could limit the coverage. Verify that you are covered by the policy in the nations you intend to visit as well. Make sure to disclose any pre-existing medical conditions to the bank at the time of account opening. Although this may make it more difficult for you to get the coverage, it's preferable to not disclosing a condition and then later discovering that you are not covered. Verify whether you need to pay more for winter sports insurance or to keep your entire family safe. Does the account still provide good value for your money if you require those extras?
Is a packaged bank account something I should get?
For the following reasons, a packaged bank account might be a good choice for you.
You will use the benefits: will you use those free movie tickets? Do you travel overseas enough to justify the cost of travel insurance if an account comes with it?
It is appropriate: make sure the insurance would pay out in the event of a claim by reviewing the exclusions on insurance policies. Is your mobile phone model covered, for instance, and are you under the legal age limit for a travel insurance policy?
Benefits are not already available to you: confirm that you do not already have insurance coverage elsewhere. For instance, do you have breakdown coverage as part of your auto insurance or auto finance package? There's no use in having two policies if you can't use them twice.
If you pay for the service separately, it might be less expensive than the account fees, so you will save money. Check again before creating an account.
Make sure the bank account is appropriate for your needs as well. If you need a branch, is there one nearby? Does it have the overdraft you require?
Are bank accounts that come packaged a good deal?
Determining whether a packaged bank account is cost-effective is simple: multiply the monthly fee by 12 to determine the yearly cost. After that, compare prices to find out how much each benefit would cost.
It's a good deal if the packaged bank account is less expensive. Instead of continuing with a packaged account for years that might no longer provide you with good value, just make sure you repeat those procedures every year.
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