Packaged bank accounts explained

Q: Are packaged bank accounts worth it?

Packaged accounts are worth it if you are going to use what you are paying for. In addition, they can be very beneficial if you are getting them as a joint bank account, as all the account holders have access to the benefits for the same fee.&#xA0;

Q: Which bank has the best package bank account?

There isn&apos;t one answer to this question, as it can change depending on your circumstances. As long as you know what you need and compare which bank offers the best deal for you, you will find the best packaged bank account for you.&#xA0;

Q: What extras can you get with a packaged bank account?

There are many extras you can get with a packaged bank account, the most common one is different types of insurance, but you can also get access to special deals on savings accounts and mortgages.&#xA0;

Q: What are the alternatives to packaged accounts?

Most banks offer a variety of bank accounts depending on their customer&apos;s needs. If you are thinking about getting a packaged account because of its savings deals, you could find a better deal with <a href="https://www.latestdeals.co.uk/guides/banking-saving/savings-accounts">another type of savings account. </a>Also, if you are looking for free perks, switching bank accounts could be cheaper than paying for a package bank account.<a href="https://www.latestdeals.co.uk/guides/banking-saving/how-to-switch-bank-accounts"> Learn more about how to switch bank accounts here.</a>

Q: Will I be credit-checked when applying for a packaged bank account?

Usually, the application process for a packaged bank account is very similar to any other bank account. Therefore, your credit rating will be checked even more if you apply for a packaged bank account with an overdraft.

Q: How are packaged account fees charged?

Usually, fees range from about &#xA3;10 to &#xA3;25 per month. The money is taken automatically from the account on the due date every month.&#xA0;

Q: Why would I pay for a bank account I can get for free?

Although you can access excellent bank accounts for free, a packaged bank account comes with extra services and products. If you are going to use them, it might be cheaper than getting them elsewhere or separately.&#xA0;

Q: How do I find the right packaged bank account for me?

The best way to find the right packaged bank account for you is to compare all available options. We have listed some of them in this guide.&#xA0;

Tamires Criscio

| Edited by Tom Church

Updated 17th November 2021

Do you know what packaged bank accounts are? Latest Deals is here to help you understand how packaged bank accounts work and how to make the most out of them.

In this guide

Packaged bank accounts are special bank accounts that come with additional services and products. They usually provide access to different types of insurance, such as car, mobile and travel insurance, for a monthly fee. Packaged bank accounts are also known as with-benefits accounts.

Things to know about packaged bank accounts

Before getting a packaged bank account, there are some things you need to know about them. We have listed them below:

Check if you need what the account is offering and if you can get it cheaper elsewhere.

The most important thing about packaged bank accounts is to ensure you make the most of them. Check what they offer, if you need their products and services and if you can get the same things cheaper with another provider or separately.

IMPORTANT NOTE: Another tip is to make sure you see how much they will cost you per year, not per month, then you have a better idea of how much you can potentially save with each option.

It can be more beneficial to get a packaged bank account as a joint bank account because all the account holders will have access to the same perks for one monthly fee.

If you want to make the most of your packaged bank account, add another person or more people to the account. Learn more about how joint bank accounts work here.

Make sure you check the products and services' policies carefully for what is included and excluded in them.

Again, checking what you are paying for is very important. You want to make sure you are getting the most out of your money.

Many people in the UK have been mis-sold packaged bank accounts, and they can reclaim them.

If you have been mis-sold a packaged bank account, we have a complete guide to help you to reclaim it.

What benefits can you have with a packaged bank account?

The most common type of benefits you can have with a package bank accounts are:

Insurance: most packaged bank accounts come with different types of insurance, such as travel insurance, mobile phone insurance and car breakdown coverage.

Discounts: some packaged bank accounts can give you exclusive deals to spend on retailers online and in-store.

Higher interest rates: some packaged bank accounts can give you higher interest rates. Learn more about how to find the best high interest savings account here.

Better deals on mortgages: some packaged bank accounts can give you better deals on mortgages. Learn more about mortgages here.

Advantages of packaged bank accounts

There are many advantages when it comes to packaged bank accounts. Latest Deals has listed some of them below:

The most significant advantage of packaged bank accounts is getting it as a joint account, as all the account holders will have access to the same benefits but only pay for one monthly fee.

If you know you will use all perks offered by the packaged bank account, you will save money because getting them separately and with other providers will probably cost you more money.

Disadvantages of a packaged bank account

There are many disadvantages when it comes to packaged bank accounts. Latest Deals has listed some of them below:

Paying for a bank account is not necessary nowadays as you can have access to excellent free bank accounts.

Once you get your packaged bank account, you also need to sign up separately for all the perks available to you, and if you fail to do it within the set period, you might lose access to them.

Some benefits might not be available to you because of their terms and conditions. That’s why it’s essential to read it before signing up for a packaged bank account.

Some of the packaged bank accounts available in the UK

Latest Deals has listed some of the packaged bank accounts available in the UK:

Bank’s Name	Packaged Bank Account	Monthly price
Halifax	Ultimate Reward Current Account Halifax	£17 per month
Natwest	Reward Platinum account Natwest	£20 per month
HSBC	HSBC Premier Bank Account	No monthly fees
Lloyds Bank	Platinum and Club Lloyds Platinum	£21 per month and £24 per month
Co-operative Bank	Everyday Extra	£15 per month
Nationwide	FlexPlus current account	£13 per month

Ultimate Reward Current Account Halifax

This is Halifax’s packaged bank account and costs £17 per month. With this account, you will get AA breakdown cover, mobile phone insurance, travel insurance and more. Learn more about this account here.

Reward Platinum account Natwest

This is Natwest’s packaged bank account and costs £20 per month. With this account, you will get UK car breakdown cover, worldwide family travel insurance, mobile phone insurance and more. Learn more about this account here.

HSBC Premier Bank Account

This is HSBC’s packaged bank account and comes with no monthly fees. With this account, you will get HSBC Worldwide Travel Insurance, preferential terms on mortgages and savings and more. Learn more about this account here.

Platinum and Club Lloyds Platinum

With Lloyds, you have two packaged bank accounts to choose from.

The first option is called Platinum. With this account, you will get worldwide multi-trip family travel insurance, mobile phone insurance, AA breakdown cover and card loss assistance for £21 per month.

The second option is called Club Lloyds Platinum. With this account, you will get the same benefits from the first one plus a Club Lloyds benefit each year for £24 per month.

Learn more about these accounts here.

Everyday Extra

This is Co-operative Bank’s packaged bank account and costs £15 per month. With this account, you will get worldwide travel insurance provided by AXA Travel Insurance, UK & European breakdown cover provided by RAC and mobile phone insurance provided by Lifestyle Services Group. Learn more about this account here.

FlexPlus current account

This is Nationwide’s packaged bank account and costs £13 per month. With this account, you will get worldwide travel, mobile phone, European breakdown cover and more. Learn more about this account here.

IMPORTANT NOTE: You can also get packaged bank accounts with digital banks.

Learn more about Monzo’s packaged bank account here.

Learn more about Starling Bank’s packaged bank account here.

How to complain about a mis-sold packaged bank account

The most important thing to know about packaged bank accounts is that your bank can’t move you from your free account to a packaged bank account without your authorisation. If they do, you have all the right to complain about it and get a refund for any charged fees.

If you have authorised the change from a free account to a packaged bank account but weren’t fully aware of the terms and conditions or given alternatives, you also have the right to complain about it and get a refund for any charged fees.

Another case where you have the right to complain about it and get a refund for any charged fees is when they increase the price of your packaged bank account without telling you beforehand.

We have a full guide on how to complain to your bank about mis-sold package bank accounts, and also another guide on how to complain to the Financial Ombudsman Service.