The Best Packaged Bank Accounts: Packaged accounts’ benefits must outweigh the costs to make them worthwhile.
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It may be worthwhile to choose a bank for its savings but also look at its packaged bank accounts, which may offer perks like free travel insurance.
In exchange for a monthly fee, packaged bank accounts offer a range of extra services, and if the price is right, they could be an excellent option for you.
Depending on the bank and account you choose, you’ll pay different amounts, so shop around and find the best deal.
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The Best Packaged Bank Accounts
Virgin Money Club M
The fee is £12.50 per month (£150 per year).
Family mobile phone and gadget insurance, worldwide family travel insurance (up to age 74), UK breakdown cover, 2.02% interest on balances up to $1,000.
The plan covers devices owned by family members living at the same address. Each device is covered up to £2,000, and you’re limited to four claims per year.
You, your partner, and up to four children living at the same address are covered for winter sports, weddings, and golf.
It’s possible to recoup some of the monthly cost with 2.02% interest. In the Club M Saver account, you can also earn 3.55% gross interest on savings balances up to £25,000.
Interest is paid every three months on balances above £25,000, which comes down to 2.52%.
The overdraft rate can be as high as 39.9% APR. Check out Virgin Money’s overdraft calculator to learn more.
Nationwide FlexPlus
A monthly fee of £13 (a yearly fee of £156)
Account holders receive UK & European breakdown cover, and worldwide family travel insurance (up to age 69, or 70+ with an upgrade of £65 a year).
The telephone 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.
Although it comes at a cost, other package account providers will cut off your coverage once you reach certain ages.
The overdraft rate at Nationwide is 39.9% APR.
Also Read: What’s the Right Travel Insurance For You: Your Essential Guide
The Co-op Bank Everyday Extra
Monthly fee: £15 (annual fee: £180)
Account holders get mobile phone coverage, worldwide family travel insurance (up to 79), and UK & European breakdown cover.
Pros: It has the oldest age limit on travel insurance and includes golf and winter sports (although the age limit drops to 64 years). Moreover, you can opt for a co-op Everyday Rewards scheme which offers up to £2.20 a month in cashback – there are a few hoops to jump through. This scheme ends on 31 May.
Mobile phone insurance covers only the account holder.
Halifax Ultimate Reward
Monthly fee: £17 (annual fee: £204)
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, and home emergency cover up to £250.
If you pay in £1,500 or more a month, stay in credit, and spend either £500 a month on your debit card or maintain a minimum balance of £5,000 in your account, you can choose from the following extra rewards: £5 cash, three digital magazines, and a free movie ticket.
Having home emergency cover along with the other insurance could make this account a good value. Winter sports and golf are covered by the travel insurance.
There is a limit of two claims per year for the phone insurance. It covers only the account holder, not family members.
In order to get the £5 cashback, you have to jump through a lot of hoops. This is the most expensive account.
It would be best if you decided whether you intend to spend £500 a month on your credit card or maintain a balance of £5,000 in your account. The option can only be changed after 12 months.
Club Lloyds Silver Account
Monthly fee: £10 (annual fee: £120)
The monthly fee for this account will increase to £11.50 on 1 July.
Including UK roadside breakdown family cover, European and UK family insurance (up to 65), mobile phone insurance for sole and joint account holders, and up to 15% cashback at selected retailers including Sainsbury’s, Costa, and Just Eat.
Aside from winter sports, golf equipment, and UK breaks, travel insurance includes the following lifestyle rewards: a free 12-month Disney Plus subscription, six cinema tickets, an annual subscription to the Gourmet Society or the Coffee Club. If you pay in £2,000 a month, you get a refund on the £3 monthly fee.
Family travel insurance only covers the UK and Europe and has a lower age limit. The travel insurance covers the account holder and their partner up to 65 years old.
Additionally, each account holder is limited to making two successful claims for mobile phone insurance within a 12-month period.
If the cover works for you, grab it while you can.
Monzo Max
Monthly fee: £17 (annual fee: £204)
With Monzo, you get worldwide travel insurance, phone insurance (for phones up to £2,000), and a cash ISA returning 4.6% AER.
In addition to a free annual Railcard and a free treat from Greggs, this package account comes with a savings account and cash ISA that offers a higher rate than most high-street banks.
Monzo offers fee-free withdrawals up to £600 every 30 days. If you invest with Monzo, you pay 0.35% platform fee (usually 0.45%), plus 0.14% fund fee.
The mobile phone and travel insurance policies only cover the account holder. In order to get family coverage, you will have to pay £5 extra per month.
Additionally, this account has a more expensive monthly fee than the others, but if you’re going to use all of its benefits, it’s worth it.
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