The best packaged bank accounts

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last updated 5 November 2024

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Packaged bank accounts can have their benefits, but it's important to make sure that the perks outweigh the costs to make it a worthwhile expense for you.

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

You might initially be interested in a bank that has the best savings account rates, but looking at their packaged bank accounts often makes sense too – if you’re likely to use the perks on offer. The amount you’ll pay each month depends on the bank and which account you choose, so it is worth shopping around and finding a package that suits you.

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

The best packaged bank accounts

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, 1% 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.

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

The 1% interest could help recoup some of the monthly cost. You can also earn 2.5% AER on savings balances up to £25,000 in the linked Club M Saver account. This comes down to 2% on balances above £25,000. Interest is 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

Fee: £13 a month (from 1 December, the fee will rise to £18 a month)

What you get: Family mobile phone insurance, worldwide family travel insurance for trips up to 31 days (for 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 of £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.

Plus, if you’re switching, Nationwide is giving £175 free cash to those who switch to one of its Flex current accounts. See our guide for the best switch offers.

Cons:

Nationwide charges 39.9% APR on its overdraft, so if you’re likely to go overdrawn this is not the account for you.

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), and UK and European breakdown cover for account holders.

Pros:

The travel insurance has the oldest age limit of all package accounts we’ve seen and it includes golf cover and winter sports (but for those the age limit drops to 64 years). It’s available as a sole or joint account.

Plus, Co-operative Bank has a switching bonus, which means you can get up to £150 in free cash by switching your current account to the Co-op Everyday Extra account. If you qualify for the full £150, that’s 10 months of the account fee on them.

Cons:

Mobile phone insurance only covers the account holder.

Club Lloyds Silver Account

Fee: £11.50 a month (£138/year)

What you get: UK roadside breakdown family cover, European and UK family insurance (up to age 65), mobile phone insurance for sole and joint account holders, fee-free spending when you use the card abroad, and 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: a free 12-month Disney Plus subscription, six cinema tickets, an annual digital Coffee Club or Gourmet Society membership or an annual magazine subscription.

The £3 monthly fee for Club Lloyds is waived if you pay at least £2,000 per month into your account.

Cons:

The family travel insurance is only eligible in the UK and Europe.

The travel insurance only covers the account holder and their partner up to the age of 65.

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, if the cover works for you, grab it while you can.

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 4.35% 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

You get a free annual Railcard every year

There’s a free treat from Greggs every week

When abroad, you can withdraw up to £600 fee-free every 30 days. If you also invest with Monzo, you 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’ll pay £5 extra a month on each policy.

This account has a pricier monthly fee than the others, so it’s only worth it if you’re going to take advantage of all its perks.

What to consider before opening a packaged bank account

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 travel insurance is included, make sure that you’re eligible for it (you’re in the age range and you don’t have existing medical conditions that would affect the cover). Also, check that the policy covers you in the countries you are planning 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
Check if you have to pay extra for winter sports cover or to protect your whole family. If you need those extras, does the account still offer you good value for money?

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? 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.

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.

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