Whether you’re looking for the best savings or bank account, you may find a packaged bank account works best for you.
A packaged bank account is a current account where you pay a monthly fee in return for a range of extras, and if the price is right, it could be a great option for you and your finances.
If you’re looking for either the best savings or bank account, you may find a packaged bank account works best for your needs. By bringing a number of perks under one umbrella, you may find it easier to manage your money, plus you have the chance to take advantage of some worthwhile rewards.
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In exchange for a fee, you get access to benefits including travel insurance, home insurance, mobile phone and gadget insurance, breakdown cover, cashback, higher savings interest rates and discounted overdrafts.
Some banks offer different levels of packaged accounts, with the price rising in line with the number of services it includes, so expect a range of price points and varying types of extras.
The amount you’ll pay depends on the bank and which account you choose, so it is worth shopping around and finding a package that suits you.
Here are the best packaged bank accounts available now.
The best packaged bank accounts
Should I get a packaged bank account?
A packaged bank account might be a good option for you if:
You will use the perks: if an account comes with travel insurance, do you go abroad enough to make it worthwhile? Will you use those free cinema tickets?
The insurance is suitable: check the exclusions on insurance policies to make sure they would pay out if you made a claim. For example, are you under the age limit for a travel insurance policy and is your mobile phone model covered?
You don’t already have the benefits: make sure you don’t already have the insurance coverage elsewhere. For example, have you got breakdown cover included in your car finance package or car insurance?
You will actually save money: if you were to pay for the service separately it could work out cheaper than the account fees. Double-check before you open an account.
The account suits your needs: don’t forget to check that the bank account is suitable too. Does it have the overdraft you need? If you need a branch, is there one local to you?
What to consider before opening a packaged bank account
Packaged bank accounts can offer enticing extras, but before you open an account make sure you consider all the elements of the account.
Take a close look at any insurance policies being offered. If you’ll get travel insurance included, make sure that you are under the maximum age for cover and that you have no existing medical conditions that would affect the cover. Check also that the policy covers you in the countries you tend to visit, or are planning on visiting.
If you have any existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted, but it’s a better outcome than not disclosing a condition, only for something to happen down the line.
We’ve all had enough of it now, but it is worthwhile to still check coronavirus exclusions. You want a policy that covers you if you need treatment for Covid 19 while you are abroad and your cancellation costs if you test positive and can’t go on your trip.
Check if you have to pay extra for winter sports cover or to protect your whole family. If you need those extras, is the account still offering good value for money?
Are packaged bank accounts good value?
Working out if a packaged bank account offers value for money is straightforward: take the monthly charge and multiply it by 12 to get the annual cost. Then shop around to see what the benefits would cost you separately.
If the packaged bank account costs less, then it is good value. Just make sure you repeat those processes each year rather than sticking with a packaged account for years that may no longer offer you good value.
Tips for opening a packaged bank account
If you are opening a packaged bank account, it usually pays to make it a joint account if you can. With most accounts, all account holders are covered for the same fee. This means you could both get breakdown cover and insurance protection at no extra cost.
While you are looking at bank accounts that come with perks, consider whether a premium account might offer you better value than a packaged bank account. Premium accounts often offer similar benefits to packaged accounts but without the monthly fee. But to qualify, you usually need to be a high earner with an annual salary of around £75,000.
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