The best packaged bank accounts

Packaged bank accounts can offer great value with useful additional perks – but get it wrong and you could be out of pocket

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(Image credit: Getty Images)

Packaged bank accounts can add value, but it's important the benefits outweigh the costs to make it a worthwhile expense.

While you may select a bank for the best savings, looking at its packaged bank accounts may also be worthwhile where you can benefit on perks like free travel insurance or monthly freebies.

A packaged bank account is a current account where you pay a monthly fee in return for a range of extras, and if the price is right, it could be a great option for you and your finances.

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For a fee of an average £15, you get access to benefits including travel insurance, home insurance, mobile phone and gadget insurance, breakdown cover, cashback, higher savings interest rates and discounted overdrafts.

The amount you’ll pay depends on the bank and which account you choose, so it is worth shopping around and finding a package that suits you.

We've rounded up the best packaged bank accounts available now.

The best packaged bank accounts

Virgin Money Club M

Virgin Money Club M

 Fee: £12.50 a month (£150/year) 

What you get: Family mobile phone and gadget insurance, worldwide family travel insurance (up to age 74), UK breakdown cover for account holders, 2.02% interest on balances up to £1,000

Pros: Mobile phone and gadget insurance covers devices owned by family members at the same address. Each device is covered up to £2,000 and you’re limited to four claims a year. 

The travel insurance covers winter sports, wedding and golf cover for you, your partner and up to four children under 18 living at the same address. 

The 2.02% interest could help recoup some of the monthly cost. You can also earn 3.55% gross interest on savings balances up to £25,000 in the linked Club M Saver account. This comes down to 2.52% on any other balance above £25,000, with the interest being paid every three months. 

Cons: Watch out for the overdraft rate – it can be up to 39.9%APR. Have a look at Virgin Money’s overdraft calculator to get a better understanding of the potential costs. 

Nationwide FlexPlus

Nationwide FlexPlus

 Fee: £13 a month (£156/year)  

What you get: Family mobile phone insurance, worldwide family travel insurance (up to age 69, or 70+ if you pay a £65 a year upgrade), UK & European breakdown cover for account holders.

Pros: Worldwide family travel insurance includes most winter sports. The phone insurance covers all family members living at the same address with up to four claims per year up to a maximum £2,000 per claim. The ability to continue the plan once you’re over 70 is a great perk too, and although it does come at a cost, other package account providers will cut-off your coverage once you reach a certain age.

Cons: Nationwide charges 39.9% APR on its overdraft.

The Co-op Bank Everyday Extra

The Co-op Bank Everyday Extra

 Fee: £15 a month (£180/year) 

What you get: Mobile phone cover for account holders, worldwide family travel insurance (up to age 79), UK & European breakdown cover for account holders.

Pros: It has the oldest age limit on travel insurance and it includes golf cover and winter sports (but the age limit drops to 64 years). It’s also available as a sole or joint account. Plus, you can opt into Co-op's Everyday Rewards which offers up to £2.20 a month in cashback – there are a few hoops to jump through. The rewards scheme ends on 31 May. 

Cons: Mobile phone insurance only covers the account holder. 

Halifax Ultimate Reward

Halifax Ultimate Reward

 Fee: £17 a month (£204/year) 

What you get: Mobile phone insurance for account holders up to £2,000, worldwide family travel insurance (under the age of 71), UK breakdown cover for account holders, home emergency cover up to £250 per claim.

Plus, if you pay in £1,500 or more a month, stay in credit and spend either £500 a month on your debit card or keep a minimum balance of £5,000 in your account you can choose from the following extra rewards: £5 a month cash, three digital magazines, a free cinema ticket.

Pros: If you want home emergency cover as well as the other insurance this account could offer good value. The travel insurance covers winter sports and golf. 

Cons: The phone insurance only covers the account holder, not family members. You are limited to two claims a year. 

This is the most expensive account unless you can get the £5 cashback, but there are a lot of hoops to jump through to get it. You must choose if you are going to spend £500 a month on your credit card or maintain a balance of £5,000 in your account. You can only change your option after 12 months.

Club Lloyds Silver Account

Club Lloyds Silver Account

Fee: £10 a month (£120/year) 

What you get: Note, the monthly fee for this account will rise to £11.50 a month from 1 July. UK roadside breakdown family cover, European and UK family insurance (up to age 65), mobile phone insurance for sole and joint account holders, up to 15% cashback at selected retailers including Sainsbury’s, Costa and Just Eat.

Pros: Travel insurance includes winter sports, golf equipment and UK breaks. You get to choose from the following lifestyle rewards: free 12-month Disney Plus subscription, six cinema tickets, an annual digital Coffee Club or Gourmet Society membership or annual magazine subscription. The £3 monthly fee gets waived off if you pay in £2,000 per month.  

Cons: Lower age limit and family travel insurance only covers the UK and Europe. The travel insurance only covers the account holder and their partner up to the age of 65. Plus, you are only allowed to make two successful mobile phone insurance claims per account holder within a 12-month period. 

This is a restricted but cheap deal, so grab it while you can if the cover works for you. 


Monzo Max

Fee: £17 a month (£204/year)

What you get: Worldwide travel insurance, phone insurance cover (for phones worth up to £2,000), UK and Europe breakdown cover and take advantage of Monzo’s instant access savings pots and cash ISA returning 4.6% AER variable. 

Pros: Unlike the other packaged accounts, this one comes with a savings account and cash ISA offering a higher rate than most high-street banks. Plus, get a free annual Railcard every year and get a free treat from Greggs every week. 

When abroad, you can withdraw up to £600 fee-free every 30 days. If you invest with Monzo, You also pay a discounted platform fee of 0.35% (usually 0.45%), plus a 0.14% fund fee. 

Cons: Travel insurance and mobile phone insurance only cover the account holder. To get family cover for both, you will need to pay £5 extra a month on each policy. Also, this account holds a pricier monthly fee than the others, so it’s worth it if you’re going to take advantage of all its perks. 


Packaged bank accounts can offer enticing extras, but before you open an 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 you’ll get travel insurance included, make sure that you are under the maximum age for cover and that you have no existing medical conditions that would affect the cover. Check also that the policy covers you in the countries you tend to visit, or are planning on visiting.

If you have any existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted, 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’ve all had enough of it now, but it is worthwhile to still check  coronavirus exclusions. You want a policy that covers you if you need treatment for Covid 19 while you are abroad and your cancellation costs if you test positive and can’t go on your trip. 

Check if you have to pay extra for winter sports cover or to protect your whole family. If you need those extras, is the account still offering good value for money?


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? Will you use those free cinema tickets?

The insurance is suitable: check the exclusions on insurance policies to make sure they would pay out if you made a claim. For example, are you under the age limit for a travel insurance policy and is your mobile phone model covered?

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.  

If the packaged bank account costs less, then it is good value. Just 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.

Tips for opening a packaged bank account

If you are opening a packaged bank account, it usually pays to make it a joint account if you can. With most accounts, all account holders are covered for the same fee. This means you could both get breakdown cover and insurance protection at no extra cost. 

While you are looking at bank accounts that come with perks, consider whether a premium account might offer you better value than a packaged bank account. Premium accounts often offer similar benefits to packaged accounts but without the monthly fee. But to qualify, you usually need to be a high earner with an annual salary of around £75,000.

Tom Higgins

Tom is a journalist and writer with an interest in sustainability, economic policy and pensions, looking into how personal finances can be used to make a positive impact. He graduated from Goldsmiths, University of London, with a BA in journalism before moving to a financial content agency. 

His work has appeared in titles Investment Week and Money Marketing, as well as social media copy for Reuters and Bloomberg in addition to corporate content for financial giants including Mercer, State Street Global Advisors and the PLSA. He has also written for the  Financial Times Group.

When not working out of the Future’s Cardiff office, Tom can be found exploring the hills and coasts of South Wales but is sometimes east of the border supporting Bristol Rovers.

With contributions from