The best packaged bank accounts
Packaged bank accounts can offer useful perks, which may save you money overall. We look at the top offers and how to make sure you pick the right account so the benefits outweigh the cost.
Packaged bank accounts are current accounts that charge a monthly fee in exchange for perks such as insurance benefits, car breakdown cover, cashback, higher savings rates, and monthly freebies.
Similar to a current account, you can receive or send money, make payments and pay your bills. The difference here is that you’ll be charged between £10 and £45 a month, depending on the type of account you choose, so it’s worth shopping around for the deal that best matches your needs.
The best packaged bank accounts
We’ve rounded up some of the top packaged bank accounts on the market right now.
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Packaged bank account | Monthly fee | Eligibility | Perks you can get |
|---|---|---|---|
£17 | No minimum pay-in | £180 switching bonus, worldwide family travel insurance cover, car breakdown cover, family mobile phone insurance, fee-free spending abroad. | |
£11.5 | Pay in £2,000 per month or face an extra £5 monthly fee | UK breakdown family cover, multi-trip European and UK family insurance, worldwide mobile phone insurance, fee-free spending abroad. | |
£14 | No minimum pay-in | Worldwide family multi-trip travel insurance, worldwide family mobile and gadget insurance, breakdown cover. | |
£18 | No minimum pay-in | Worldwide family travel and mobile phone insurance, breakdown cover, fee-free spending overseas, £50 interest-free on arranged overdraft. | |
£18 | No minimum pay-in | Worldwide family travel insurance, breakdown cover, mobile phone cover. | |
£19 | No minimum pay-in | Worldwide family travel insurance, mobile phone insurance, breakdown cover, home emergency cover, no fees abroad. | |
£12.5 | Must be a Chase current account customer + add Protect. | Worldwide family multi-trip travel insurance, mobile phone insurance, breakdown cover. | |
No fee | Have £100k in income or £100k saved/invested with HSBC. | Worldwide family travel insurance, online health services. |
We take a further look at the accounts below.
What to consider before opening a packaged bank account
Before opening a packaged bank account, make sure you consider all the elements to ensure the perks outweigh the costs.
- Take a close look at any insurance policies being offered. If travel insurance is included, make sure that you’re eligible, if your travel insurance covers any activities you intend on doing, and that the policy covers countries you plan on visiting.
- If you have any pre-existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted for the account, but it’s a better outcome than not disclosing a condition, only for something to happen down the line and find out you are not covered. We look at how to get travel insurance for over 70s in a separate guide.
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?
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?
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.
For instance, a Santander Edge Explorer account may be worth getting with the bank switching bonus, but it may not end up being worth the cost later. 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.
