A current account that includes additional products and services from the bank and other businesses is known as a packaged bank account. These usually include insurances, such as travel insurance, mobile phone or gadget insurance, car breakdown cover, retailer discounts and access to exclusive or loyalty products from the bank. There are 30 packaged bank accounts available (as of January 2020) from UK banks and building societies.
Packaged bank accounts range in cost from free up to £75 per month. You may need to meet certain criteria to be eligible for some of the accounts, such as a minimum income or holding investable assets with the provider.
For example, the HSBC Premier account is the only packaged account without a monthly fee, but there are eligibility criteria to meet, including a minimum salary of £75,000, holding an HSBC International Premier account or having an investment of at least £50,000 with HSBC UK.
The lowest fee for a packaged account is £10, but it does not provide any insurance cover. Nationwide’s FlexPlus account currently offers insurances for the lowest monthly fee at £13 per month.
A packaged account may have benefits for you, for example if the services offered are ones that you would use and potentially pay more for separately. Moneyfacts has reviewed the packaged bank accounts available in the UK and rated these based on their introductory offers, incentives and value of their additional products and services.
Click below to find out which packaged bank accounts got four and five-star ratings.
Choosing a bank account should also be based on how you intend to use your account – for example, do you need an overdraft as part of your account or do you plan to be in credit and want to earn interest on your balance? In addition, the way you want to bank is also important, for instance if you need to visit a branch to do your banking.
When taking a packaged account, the bank account provider should check that all the insurances included are suitable for you. This means there should not be any exclusions that prevent you from claiming. Some examples include pre-existing medical conditions, maximum age limits and specific countries.
You can select those products and services you are looking for in a packaged bank account on our banking page.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.