Nationwide increased the monthly fee on its FlexPlus packaged account this week, meaning customers will now pay £60 more per year for the account. It was the first fee increase since 2017, with the building society blaming it on the rising cost of insurance.
The account offers an attractive range of perks, including worldwide travel and phone insurance for the entire family, plus vehicle breakdown cover. But at £18 per month or £216 per year, is it still one of the best packaged bank accounts?
The answer to that question largely depends on what you are looking for from your packaged account.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If you only need European travel insurance rather than a worldwide policy, for example, you might be able to find a cheaper deal elsewhere. Similarly, if you don’t have a car, vehicle breakdown cover is unlikely to be much use.
On the other hand, if you rely on these features and would otherwise need to take out a separate policy, the FlexPlus account could offer you a good deal.
We have reviewed packaged bank accounts from a range of providers and, based on our analysis, the Nationwide fee doesn’t look out of kilter with the wider market, when you compare like-for-like accounts.
A similar account from Monzo costs £17 per month, for example, or £22 if you want to add your family to the insurance policy.
Nationwide has also built a strong reputation in recent years through initiatives like its £100 fairer share bonus, paid to customers in both 2023 and 2024. Programmes like these are important in building customer loyalty.
That said, it is still important to assess how much use you are getting out of the perks you are paying for. If the answer is ‘not much’, you might be better opting for a regular current account with no fee at all.
What comes with Nationwide FlexPlus?
Nationwide FlexPlus offers a range of perks including worldwide travel and phone insurance, and vehicle breakdown cover in the UK and the rest of Europe. Customers can also use their card on holiday without any charges.
Signing up for FlexPlus also gives you access to other Nationwide products, including the Flex Regular Saver and Flex Instant Saver. These come with rates of 6.50% AER and 3.25% AER respectively.
The Flex Instant Saver rate isn’t necessarily anything to write home about – the best easy-access savings accounts elsewhere currently pay up to 4.85%. The regular saver is a good deal, though. At 6.50%, it is currently the fourth best ‘regular saver’ rate on the market, according to comparison site Moneyfacts.
What’s more, new customers who like the sound of the Nationwide account can currently take advantage of a £175 switching deal. See our round-up of the best switching deals currently on the market.
Even after the latest fee hike, Nationwide says FlexPlus is “one of the UK’s most competitive packaged current accounts, both in price and quality of cover”. The bank also pointed to its “leading customer service”.
At a time when branches are closing, Nationwide still has a strong high street presence, meaning it could be a good option for those who prefer to bank in-person.
The bank narrowly missed out on becoming a ‘Which?’ recommended provider last month, but the consumer site said the building society was “rated highly and had a string of four or five-star ratings” for most elements of its service.
How does FlexPlus compare to other packaged accounts?
Nationwide FlexPlus versus Virgin Money
One of the cheapest packaged accounts on the market is the Virgin Money Club M Account, which comes with a monthly fee of £12.50. This makes it £5.50 cheaper than Nationwide FlexPlus each month, or £66 cheaper over the course of a year.
If Nationwide pays out another £100 fairer share bonus in 2025, you would have been better off sticking with them over Virgin, although of course there are no guarantees. You also need to weigh up factors like customer service. If you are happy with your current provider, switching is always a risk.
The Virgin Money account comes with some similar features to Nationwide FlexPlus, including worldwide travel insurance, mobile phone and gadget insurance and vehicle breakdown cover. Like Nationwide, there are no fees on your card when you travel.
The linked savings account offered by Virgin Money is less attractive, with a measly rate of 2.50% AER, although savers should remember they can access significantly higher rates than this elsewhere without having to pay any membership fees at all. The same goes for the 3.50% Nationwide Flex Instant Saver. See our round-up of the best easy-access savings accounts.
Nationwide FlexPlus versus Club Lloyds
Club Lloyds also offers a range of similar perks to Nationwide. You can choose from a range of different membership levels, depending on the perks you are looking for.
The Silver account costs £11.50 per month (plus an additional £3 Club Lloyds fee, which is waived if you pay more than £2,000 into your account each month). However, this only covers you for European and UK trips up to age 65.
If you are older than 65 or need worldwide insurance, you will need to opt for the Platinum version of the account, which is more expensive at £22.50 per month. This also comes with an additional £3 Club Lloyds fee, depending on how much you pay into your account each month.
If you don’t need worldwide travel insurance, you might be better opting for the Silver account at Club Lloyds over Nationwide. It also comes with AA breakdown cover, mobile phone insurance, and no debit card fees when you travel. Nationwide is the cheaper option if you need worldwide insurance, though.
A nice perk with Club Lloyds is that it allows you to choose a different lifestyle benefit each year per account. Customers can choose between a Disney+ subscription, six free cinema tickets, a magazine subscription and more.
Again, you need to weigh up how much you would actually use the benefits and whether it justifies the monthly Lloyds fee.
Millions of over 50s fear pension investment risk – how should you position your portfolio?
£150 off energy bills: millions more to get discount this winter
