Are packaged current accounts better than standard ones?
March 18, 2008
Over recent years in increasing number of banks have started to offer upgraded current accounts known as packaged accounts to many consumers. These packaged accounts are known by different names depending on which bank you are with, but all operate in the same way which is to charge a monthly account fee in exchange for a range of benefits. Other than the additional benefits that these packaged accounts offer they operate in the same way as a standard current account, enabling customers to conduct their day to day financial transactions in the same way.
However, although these accounts do come with a host of benefits the monthly charge can be quite pricey, and depending on the bank charges can be around £12 to £25 per month, although some do charge slightly less. Experts are now urging consumers not to sign up for these accounts without first checking the benefits on offer and ensuring that they will actually make use of the benefits, otherwise they will end up wasting a lot of money on account fees but will not actually be benefiting from the account.
One industry official said: ‘The savings you make will more than likely pay the cost of buying some benefits independently. These benefits can be quite attractive but only if you take full advantage of them, so make sure you register for them and make sure they fully meet your needs. How beneficial is car breakdown cover if it only covers you on a limited distance from your home? Alternatively, how often do you lose your mobile phone?’
Amongst the benefits that are offered with these packages accounts are free breakdown cover, mobile phone cover, preferential rates on borrowing, higher overdraft limits, travel insurance, and a number of other benefits and discounts.
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