Packaged Bank Accounts – What Are They?

You may have heard the term “packaged bank account” being used in some shape or form. What this refers to is a current account that has a number of additional insurance features included in it – all for a monthly fee.

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These additional features include travel insurance, preferential saving rates, will writing services and share dealing services.

When you compare bank accounts from one bank to the other, you will be able to see if each offers the same deals for current account holders.

Around 20% of the population in the UK has a packaged bank account of some sort. In the majority of cases, depending on the provider these packaged accounts will also include mobile phone insurance, Identity theft insurance and breakdown cover.

The cost of these packaged current account options might actually cost you more than if you were to go a buy a separate travel insurance policy or a separate breakdown cover policy. So you need to ask yourself initially if you will make use of any of the benefits that are included. Otherwise, it would be pointless to sign up for one. Like any product, financial or otherwise, people should do their homework and weigh up the pro’s and con’s of what’s included in the deal before they sign on the dotted line.

There currently is a massive debate on whether banks should charge for all current accounts, even for ones without any benefits.

With the large amount of bank account options online these days, people have such an array of choices to choose from. We need to clearly define what options we are looking along with the associated benefits of each package.

It must be remembered that no two accounts are the same. Different deals for overdrafts and credit limits are present, as well as various terms and conditions.

Halifax offers one of the cheapest packaged current accounts available in the UK at present. At around £150 per year you get annual family travel insurance which also covers winter sports cover, breakdown cover and mobile phone insurance.

You can make an informed decision as to which bank to head to for a packaged current account by using an online comparison tool. This will bring all the relevant information onto one screen for you to digest.