Is your upgraded bank account worth the cost?
In the past consumers in the UK knew exactly where they stood when it comes to their bank accounts, with most accounts offering standard services and charging no fee for use. However, over recent years more and more leading banks have introduced upgraded accounts where consumers are encouraged – and often persuaded – to upgrade their bank accounts to accounts that offer a number of benefits and for which they are charged a set monthly fee.
However, although the upgraded accounts do often offer a number of valuable benefits, the cost of these accounts has been steadily rising, with many high street banks hiking up the monthly fee for holding an upgraded account. Experts now advise consumers to look into whether they benefits offered on these upgraded accounts are really worth the extra fees that they are paying each month to the banks. Although there may be a wide range of benefits on offer, a large number of consumers never actually take advantage of most of the benefits yet still continue to pay the monthly charges.
Amongst the benefits offered on upgraded accounts by many leading banks you will find ‘free’ car recovery cover, ‘free’ travel insurance, ‘free’ mobile phone cover, a range of discounts on attractions throughout the UK, and more. Upgraded accounts are offered by banks such as Lloyds TSB, Barclays, HSBC and First Direct, and Natwest, amongst others. However, before being talked into taking one of these accounts, consumers should ask for literature to see exactly what is on offer, and should question whether the benefits on offer will justify the monthly fee charged on the upgraded account.
The charges on these upgraded accounts have risen with many banks over the last twelve months, with many rising by a pound or more each month, which will generate tens of millions in extra revenue for banks.
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