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Packaged Bank Accounts

Compare current accounts with benefits

  • High street and challenger banks
  • Compare by features, rating and incentive
  • Open an account online

Want a current account that gives you additional benefits and exclusive rates? There is often a fee, but it can be worth paying

With benefits guide

What is a with-benefits account?

A 'with-benefits’ account is a current account that offers a series of extras but charges a monthly fee for use. For the right account holder, extras such as free breakdown cover, travel insurance, phone insurance, home emergency cover and discounts more than offset the monthly fee.

Because with-benefits accounts are laden with extras, they are often referred to as packaged or added-value accounts.

Are packaged bank accounts worth it?

Packaged accounts are a good option if you would buy the attached benefits anyway, and for the right account holder, the extras will more than offset the monthly fee.

They can also be great for joint accounts, as the perks generally cover both account holders for just one fee.

If you don’t use the benefits, these current accounts are not worth the monthly fee.

Which bank has the best benefits?

No one bank offers the best packaged account benefits for everyone.

The account that offers the most value to you will depend on which types of insurance and discounts you use.

The range of benefits available varies, as does the monthly fee, so it’s important to shop around.

What extras can you get with a with-benefits current account?

The banks all offer different packaged account perks, and common extras include travel insurance, breakdown cover and mobile phone insurance.

Many banks and building societies also offer preferential rates on other products like savings and mortgages to their packaged account customers.

The most common types of current account

According to a survey of 1,978 internet users by Mintel research in July 2019

How are packaged account fees charged?

Packaged account fees range from about £10 to £20 per month.

The money is taken automatically from your account in the same way as overdraft charges or overseas debit card usage fees.

Typically, you will also need to pay a minimum amount of, say, £1,500 into the account each month in order to qualify.

If you believe you were missold a packaged account because, for example, you could not use the free insurance, you can claim the fees back from your bank.

Which premier bank account is the best?

Premier or premium bank accounts are aimed at high earners (£75,000-a-year plus) and/or those with large investments or mortgages.

Common benefits include a more personal level of service, free travel insurance and access to competitively priced savings accounts.

Packaged accounts: The pros

  • If you take advantage of all the perks, the amount you save will be much higher than the fee you pay
  • With-benefits accounts make great value joint accounts – two lots of perks for one fee

Packaged accounts: The cons

  • The monthly fee is a turn-off for many people
  • You need to sign up for some of the perks – fail to do this and you will miss out
  • Certain benefits may not be suitable for you. Some travel insurance offers, for example, exclude travellers over a certain age

What are the alternatives to packaged accounts?

Packaged accounts are not for everyone, and whether they are depends how you use your current account.

  • If you’re frequently overdrawn, go for a deal that gives you a generous interest-free overdraft
  • If you’re usually in credit, a high-interest current account could be a better option
  • High earners with more complex banking needs may prefer a premier account, which gives them access to a relationship manager
  • Reward accounts that pay you an amount each month offer more value to some people than packaged accounts

Comparing with-benefits current accounts

The value for money offered by packaged accounts depends on which perks best suit your lifestyle and how you use your account.

Comparing with-benefits current accounts on MoneySuperMarket can help you find the right bank account for your needs.