Is it worth paying for a bank account?

Banks are on the look out for new ways to part you from your money, says James McKeigue. And 'packaged accounts' are just the latest wheeze. But are they worth it?

The compensation bill that will hit the front-door mats of our banks for misselling payment protection insurance (PPI) is estimated to be around £10bn. So you might think they'd now be chastened and ready to concentrate on serving their customers. Pigs might also fly. Over the last few years our banks have focused on selling a new way to take your money packaged accounts'. Here's why you should be wary.

You may be one of theten million British customers who have already bought one of these products. The idea is that, instead of the standard, free' current account, you pay a fee for the privilege of giving a bank your money. Given that your bank can already make healthy profits by lending your money out at a higher interest rate, you might wonder what you are paying for. The banks offer all sorts of services on these accounts. Travel insurance, car insurance and investment advice are some of the perks on offer. In exchange, you'll pay up to £25 a month.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.