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Packaged bank accounts

Bank accounts with extra benefits

  • See our packaged accounts in 1 click

  • Enjoy an account with perks from travel insurance to breakdown cover

  • Apply in minutes

What is a packaged bank account?

A packaged bank account is a type of current account that comes with extra features, such as travel insurance and breakdown cover or perks like airport lounge access. Most packaged accounts charge a monthly fee, so try to choose an account with benefits that will outweigh the cost.

Man on laptop

How do packaged bank accounts work?

  • Spend and receive money

    A packaged account works just like a regular bank account, so you can pay in your salary and spend through direct debits, standing orders, bank transfers and debit cards

  • Pay a monthly fee

    When you sign up for the account you’ll agree to pay a fee, which is taken from your balance on a set day each month. You may need to commit to a minimum period, such as 12 months

  • Use the benefits

    You can use any benefits that are included – such as insurance for travel, breakdown and your mobile phone – in the usual way. Each benefit will have its own terms and conditions

  • Overdraft

    Depending on the type of packaged account, it might come with an arranged overdraft facility. This allows for short-term borrowing, but check the interest rates first

What benefits do packaged accounts offer?

There are a range of potential benefits that can come with packaged accounts, including:

  • Gadget/mobile phone cover

    Some packaged accounts will cover your (and sometimes family members’) mobile phones and other gadgets like laptops

  • Travel insurance

    Many accounts will offer travel insurance – just make sure to check any age limits and declare any pre-existing medical conditions so you’re fully covered

  • Breakdown cover

    Breakdown cover in the UK will often be included, while some packaged accounts will cover UK and European breakdown, which could be reassuring if you drive on the continent

  • Home emergency cover

    Many accounts include home emergency cover which can protect you against unexpected incidents like your boiler breaking or a loss of electricity supply to your home

What are the pros and cons of packaged bank accounts?

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    • Offer a wide range of benefits, such as insurance that you’d usually buy separately 

    • Additional members-only offers, such as deals on credit cards and loans for account holders 

    • It’s easy to calculate whether the account fee is justified

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    • The fee might not be worth the benefits and the incentives might change over time 

    • Insurance policies may have exclusions and limitations 

    • May be more suitable alternatives if you need to use your overdraft often

Why compare current accounts with MoneySuperMarket

  • Plenty of choice

    Decide on the type of account you want, including those with arranged overdrafts, switching incentives and extra benefits

  • Easy to understand

    We show you the key features of each account at a glance and you can filter the options to refine your search

  • Apply in a few clicks

    Once you’ve settled on the current account you want, just click through to the provider and apply online in seconds

How to choose the best packaged current account

If you’re looking for a current account with additional benefits, consider the following first…

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    Make sure the benefits are useful

    Unless you’re going to use the benefits included in your packaged account, you could end up wasting money on the account’s monthly fee

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    Be mindful of fees

    Try to measure the monthly fee against the benefits you’ll receive. You may get more benefits for a slightly higher fee elsewhere, or you may pay too much for benefits you won’t use

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    Check the small print

    Be sure the benefits of the packaged account suit your needs. For example, there may be an age limit to travel insurance or it might not cover a pre-existing medical condition

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    Do you need an overdraft?

    If you need an overdraft, you may want to look for an account with a cheaper borrowing rate instead of an account with benefits, as this will save you money in interest repayments

What are the alternatives to packaged bank accounts?

If you’re looking to switch bank accounts, a packaged account might not always be the right choice. Here are some alternatives to consider…

  • Rewards and cashback current account

    Rewards and cashback current accounts reward you with money back when you spend with certain retailers, or for paying utility bills from the account.

  • Accounts offering a switch incentive

    Many current accounts offer incentives when you switch to them, from cashback to days out and wine. Always read the terms and conditions first.

  • High interest current account

    High interest current accounts pay you a competitive rate of interest on your balance when you’re in credit, although this is often capped at a certain level.

Emma Lunn

Our expert says


Packaged bank accounts offer perks such as travel and mobile phone insurance, airport lounge access and car breakdown cover. You’ll pay a fee for the package of benefits and, in general, the higher the fee the better the package. You’ll need to weigh up if the fee is worth it for what you get in return. If you are normally overdrawn, you might be better off with an account with the cheapest overdraft.

- Emma Lunn, Personal finance expert

How to compare packaged bank accounts with MoneySuperMarket

We can take the hard work out of finding a current account to suit you by comparing a range of current accounts all in one place.

  • Browse our providers

    Click through to search the market to find the best current account for your needs, including any cash incentives to switch

  • Filter and sort

    Use our handy filters to narrow down your options based on the type of current account you need, such as high interest or student accounts

  • Click through to provider

    When you find the deal you want, click straight through to the provider to complete your application. Sit back while your new bank takes care of the switch

Different current accounts come with their own incentives and features, so what benefits are ‘best’ will depend on what features are most important to you. For example, you may be after travel insurance with your current account or you may prefer to receive cashback on your spending.

You might be able to get a packaged account with bad credit, but it will depend on the view of the account provider. They will want to be confident that you can afford the monthly fee and may also limit the amount you can borrow through an overdraft.

Fees for a packaged account will vary from provider to provider, with the monthly fee displayed upfront so it is easy to compare. Factor in the benefits you’ll receive alongside the fee before making your decision.

How fixed the benefits are on a packaged bank account will depend on the individual account, so check the terms and conditions closely. Features may also change over time if you retain the account for more than 12 months, but again it will depend on the account provider.

Travel insurance is one of the most common additional benefits of a packaged account, with many accounts offering this type of cover. Make sure the travel insurance is right for your needs, including the geographical regions it covers, any policy extras such as extreme sports cover you need, and whether you have the option to cover pre-existing medical conditions.

Switching from a regular bank account to a packaged account works in the same way as any other current account switch. You should also be able to use the current account switch guarantee to make it hassle-free.

This will depend on the terms and conditions of the account provider. You might find that you will face an additional charge for holding the current account, or that its connected benefits are cancelled. If you’re struggling with the funds to pay the monthly fee, contact your account provider as soon as possible to try and work out a solution.

A packaged account could be right for you if the benefits you receive from the account outweigh what you pay in fees. Take time to look at the individual benefits and work out how much they might cost if you bought them separately. That way you can see how much value they have when compared to the fixed monthly fee.

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So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.

A current account is a bank or building society account that lets you manage your day-to-day spending.

You can have your salary paid into it, set up direct debits and standing orders, and negotiate an overdraft. Some accounts also pay interest on balances and offer cashback on spending.

There are lots of types of current account to suit all sorts of personal situations. These include:

  • Standard: For managing ordinary income and expenditure, usually with a debit card, a cheque book and an overdraft

  • Basic: No-frills accounts which come with fewer features, designed for people with bad or no credit history

  • Packaged: These come with various bonuses, including things like interest-free overdraft, insurance add-ons and discounts for other banking products. They usually have monthly fees and eligibility requirements

  • Rewards: These can offer a range of benefits from cashback and discounts when you spend, to loyalty points and even boosted interest on your in-credit balance.

  • Student/graduate: Current accounts designed to cover the particular financial pressures faced by students and recent graduates, normally including larger interest-free overdrafts

  • Joint: Accounts designed for two or more people, to cover household expenses or couples’ expenditure

  • Children’s: These have few features and are designed to introduce children to banking and saving

Some current accounts come with extra benefits for the account holder, like a cash bonus for signing up, better interest rates or even breakdown cover. The accounts might only be available to certain customers, like those with high credit ratings.

Some current accounts include fees if you use them in a certain way – some banks might charge you for resending a printed account statement or for accessing your account abroad. You may even be charged a fee for going into your overdraft without telling your bank beforehand.

The traditional idea of banking is being changed by digital or challenger banks, who provide most of their services through the internet or a mobile app rather than in branch or over the phone. Many are designed to be more open and transparent with customers and less focused on banking products.

It’s more attractive than ever to compare current accounts: healthy competition means there are a number of incentives available for those willing to switch. But if you don’t compare current accounts, you could be missing out on a great deal – and some free cash!

Switching current accounts is simple because most of the legwork is done for you and, at the end of it, you can benefit from an account that’s much better for your pocket and lifestyle.

If you’re looking for the best current account, you’ll benefit from a wide range of products to choose from. Many of the best current accounts offer:

  • High interest rates

  • Cashback and rewards on spending

  • Competitive overdraft rates

The best current account is different for each person, as it depends on your spending habits and level of savings.

Switching current accounts has never been simpler, and many providers offer lucrative incentives for moving your account to them.

The Current Account Switch Guarantee makes switching current accounts very easy indeed, and your bank will do most of the legwork for you, including transferring money, direct debits and standing orders, and informing your employer.

When you switch your current account to a new bank or building society, you could get £100 or more in cashback as a reward for switching. Just make sure that you’re applying for an account that suits your needs, not just the one with the highest cashback.

If you tend to stay in credit and never go overdrawn, you could get rewarded regularly by your bank or building society. By switching to a rewards current account, you could get a monthly reward payment and earn cashback on your spending. Some providers will also offer a cash incentive for switching your current account to them.

Many rewards accounts have requirements such as paying in a minimum amount each month, or having a minimum number of direct debits, so make sure you can meet the criteria to get the rewards.

If you’re fed up with getting poor customer service from your bank, switch your current account to a provider that’s known for looking after its customers.

As well as making your life easier, some of these accounts offer extra benefits such as competitive overdrafts or cashback for switching.

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