Packaged current accounts
Packaged accounts are current accounts that provide the accountholder with a range of additional benefits (such as different types of insurance), in return for a monthly account fee.
In recent years there has been a significant increase in the number of packaged current accounts available from banks. Many banks now offer a range of different account options with different monthly fees depending on the level of benefits and incentives offered.
Do you know if you have a packaged current account? If you do have one, is it actually worth the fee that you pay to have such an account and the benefits that it provides you with? You may be better off buying the benefits (such as travel insurance or breakdown cover) individually, or not at all.
Benefits that are commonly provided with packaged current accounts include:
- commission-free foreign currency;
- travel insurance;
- motor breakdown cover;
- mobile-phone insurance; and
- identity fraud insurance.
Are they right for you?
Packaged current accounts may offer value for money for some people, but they may not benefit everyone. The fees may not represent good value for money for many customers because they provide services that an individual may not need; they do not provide the appropriate type or level of cover; or you may be able to buy them separately for less money.
If you have, or are thinking of opening, a packaged account you should consider whether you need all of the products that are included with the account. Ask yourself the following questions:
- Do you need each product?
- Does each product provide the right amount of cover for you personally?
- Could you buy the products that you need separately for better value?