Are packaged bank accounts worth paying for?

Packaged bank accounts can be very convenient, but do your sums carefully to make sure you're getting your money's worth.

Nationwide is removing interest payments from its popular packaged bank account. From 1 November the FlexPlus current account, which costs £13 a month, will no longer pay 3% interest on balances of up to £2,500. The £250 fee-free overdraft facility on the account is going too, leaving customers paying an annual percentage rate (APR) of 39.9% if they stray into their overdraft.

So is the account still worth £156 a year? It comes with family travel insurance, including cover for winter sports and golf up to the account holder's 70th birthday.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.