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Is a current account with benefits for you?

Category: Banking
Author: Tim Leonard
Updated: 26/11/2018

Current accounts offering additional benefits are becoming more and more common. Indeed, you may find that every visit to your local bank includes a friendly customer adviser trying to tempt you to upgrade your current account!

The problem is that these 'packaged' current accounts aren't suitable for everyone. But the question is: are they suitable for you?

What are 'packaged' current accounts?

'Packaged current account' is a term given to bank accounts that come with a package of benefits. These can include:

In return for these extra benefits, your bank or building society may charge you a monthly fee.

It's only worth it if you use the benefits

These current accounts can be fantastic - they can save you a bundle if the package offers several benefits you already have individually.

But the flipside is that if the benefits aren't relevant to you, or don't save you money, you're effectively paying over the odds for your bank account.

Is a current account with benefits right for you?

  • Check the benefits offered. Which do you already have, and which will you realistically use?
  • Don't be swayed by benefits that sound good, but you probably won't use (such as roadside breakdown assistance if you don't have a car).
  • Add up what you already pay over the year for any benefits you have and then divide by 12. Is the monthly current account fee cheaper? Great!

But it's not quite as simple as that

Insurances can vary in the level of cover offered, so check what's offered on your existing policy and the current account policy to make sure you don't miss out.

Additionally, banks and building societies have to ensure that customers who take out a packaged bank account can use the benefits that come with the account. If you don't fit the bill, you won't be able to apply for one.

What Next?

Find the best bank account with benefits for you with our current account search

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.