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Best packaged bank accounts

Top packaged bank accounts

Get £500+/yr of breakdown, travel & mobile insurance for £156/yr

Chris Collier
Chris Collier | Edited by Helen Saxon
Updated 14 March 2023

Packaged bank accounts are the Marmite of banking – some love 'em, some hate 'em. They usually have a monthly fee but, used right, they can save you £100s off the cost of breakdown, travel and mobile insurance. Our guide will help you check if a packaged account is right for you, and then run you through the top-pick accounts.

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Mis-sold a packaged account? Read Reclaim packaged bank account fees to see if you can get your money back.

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Packaged account best buys

Packaged account need-to-knows

Packaged bank accounts usually provide breakdown cover, mobile and travel insurance for a monthly fee. But before you get an account, read these need-to-knows – they'll help you check this type of account is right for you.

  • 1. To work out if an account's worth it, check you NEED the insurance and if you can get it cheaper elsewhere

    For some, travel insurance, smartphone cover and a breakdown policy for a fixed monthly fee won't be worth it. But if you're savvy enough to check policies and work out costs, they can SAVE you money. There's a simple way to work it out:

    If you don't need the insurances, or can insure cheaper elsewhere, don't bother with a packaged account.

    Start by multiplying the monthly cost of the account by 12 – for example, £15/month is £180/year – then see if you can buy the 'freebies' for less. To help, see our Travel Insurance, Breakdown Cover and Mobile Insurance guides. The policies included with packaged accounts are deliberately high-end, so compare whether a decent standard policy covers what you'll need.

    If you'd make a saving, a packaged account might be worth it for you. If you wouldn't, paying for cover separately and plumping for a fee-free bank account could work better.

  • 2. The perks are usually valid for all account holders for the same fee

    With most packaged accounts you can max the value by opening it as a joint account. Doing it this way means you're both covered, for the same fee. So even if you won't both use the account, adding a partner can make sense – though be aware that joining finances means their credit record can affect yours.

    You should still consider what policies you actually need, and whether you could get them cheaper elsewhere, but if you both travel worldwide, own cars and have smartphones, a packaged account could save you money.

    A warning about joint finances

    Only do it if you're in a financially trusting, caring, non-abusive relationship. Don't ever feel pressured by a partner into getting a joint account, it can sadly be a precursor to financial abuse – a form of domestic violence. For help and info, see Martin's Financial abuse & joint accounts blog.

  • 3. Check insurance policies carefully for exclusions

    If the account won't pay out when necessary, it's worthless, so always check you're covered for what you need before signing up.

    Plus always watch out for upgrade charges. If winter sports and family cover aren't included, adding them can have hefty costs and you could find you're spending far more than you need to. Instead, choose a more suitable account to begin with, or save by insuring separately.

  • 4. Always declare any pre-existing medical conditions for travel insurance or they won't be covered

    Failing to declare conditions when applying for an account – and therefore, the travel insurance cover, too – may invalidate the policy. You need to call the insurer and tell it, even if you're just having tests for a condition.

    If you're diagnosed, or anything changes after the policy has been taken out, tell the insurer before you travel. It'll decide if it'll still cover you, with or without an additional charge. This will be reviewed annually, for as long as you hold the account, although it may not provide cover under the same conditions each year.

  • 5. Thousands have been mis-sold these accounts, but you can reclaim if so

    This guide's about how to pick the best packaged account. But it's worth noting that many people have had them for years without being able to use the benefits, essentially because they were mis-sold the account.

    If that's you, see our Reclaim packaged account fees guide. Everyone who pays a monthly bank account fee should check to see if they were mis-sold.

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Top-pick packaged bank accounts

There are a whole host of packaged bank accounts out there, but you have to be careful that the one you choose gives you value for money, especially if you're still driving less and taking fewer overseas trips.

All of our top picks offer similar cover in terms of the insurance policies themselves, so this isn't a strict ranking. Instead we look at who's covered by the insurance, then highlight the features of each account and suggest who it could be best for.

Do check what each account covers to make sure you pick the one that's right for your circumstances.

Top packaged bank accounts



Nationwide
FlexPlus

 

Service rating: 78% 'great' 
 

Account info:

- Monthly fee: £13 (£156/yr)

- Minimum pay-in: None

- Overdraft: 39.9% EAR variable
Top pick packaged bank account for families

Nationwide's FlexPlus has a low £13/mth fee and offers mobile phone, travel and breakdown cover worth up to £500 if you bought equivalent policies separately. Unusually it covers the whole family's phones (most only cover account holders').

 

Yet do compare it to Virgin Money's Club M below, as it offers similar cover, and may suit some families better.

 

Key insurance info:
- Family mobile phone cover
- World family travel insurance (max age 69, or 70+ with a £65/yr upgrade)
- UK & European breakdown cover for account holders

See full 'what the insurance covers' info.




Virgin Money Club M*

Service rating: 46% 'great'

Account info:

- Monthly fee: £14.50 (£174/yr)

- Minimum pay-in: None

- Overdraft: 19.9%, 29.9% or 39.9% EAR variable
Top for families who want gadget cover too

The Virgin Money Club M* account also offers up to £500-worth of family cover with similar policies to Nationwide's, but it also covers gadgets such as tablets and laptops. Its travel insurance also extends to a higher age, though the breakdown cover is UK only.

 

It's slightly more expensive than Nationwide, but it pays 2.02% interest on up to £1,000 on the current account and 2.52% on up to £25,000 on its linked saving account, which can offset some of the fee.
 

Key insurance info:
- Family mobile phone and gadget cover
- World family travel insurance (max age 75)
- UK breakdown cover for account holders

See full 'what the insurance covers' info.



Co-op Bank
Everyday Extra

 

Service rating: 61% 'great'

Account info:

- Monthly fee: £15 (£180/yr)
- Minimum pay-in: None (or £800+/mth for cashback)

- Overdraft: 35.9% EAR variable
Good option for older travellers or couples

 

The Co-op Bank Everyday Extra provides travel insurance up to the age of 79 as standard (as always, declare any medical conditions) and offers up to £2.20 back in cashback if you jump through some hoops every month. If you can commit to this, it's then cheaper than Nationwide and Virgin above – though the mobile cover isn't for all the family, so is better suited to couples. We value the insurance at up to £400/year, based on similar policies. 

Key insurance info:
- Mobile phone cover for account holders
- World family travel insurance (max age 79)
- UK & European breakdown cover for account holder(s)

See full 'what the insurance covers' info.

productbox-Halifax.png

Halifax Ultimate
Reward

 

Service rating: 53% 'great'

Account info:
- Monthly fee: £17 (£204/yr)

- Minimum pay-in: None (£1,500+/mth for rewards)
- Overdraft: £50 at 0%, then 39.9% EAR variable
New. Good if you want home emergency cover, plus switchers can get a FREE £175

Another decent option is the Halifax Ultimate Reward account, especially if you're already paying for home emergency cover and will make use of all the other insurances (worth up to £400/year). Like Co-op above, only account holders get mobile cover so it's less suited to families. 

 

You can get £175 upfront if you switch, which makes it 'free' for the first ten months or so, plus if you're willing to jump through some hoops, there's also a further £5/month cashback up for grabs.

 

Key insurance info:
- Mobile phone cover for account holders
- World family travel insurance (max age 70)
- UK breakdown cover for account holders
- Home emergency cover

See full 'what the insurance covers' info 

 

Our service ratings are from our Jan 2023 poll of 4,000 people.

Top premium bank accounts

While you can pay for the accounts above, most banks also have a 'premium' account. This is generally for people earning high salaries (usually £75,000+) or who have significant investments or mortgage borrowing.

These premium accounts are generally seen as a halfway house between the paid-for accounts above, and proper private banking. Perks associated with the accounts vary. Some include insurance, access to concierge services, or discounts on mortgages or other associated products. Here are our top picks...

Top premium bank accounts



HSBC Premier

 

Service rating: 37% 'great'

Account info:
- Monthly fee: None (must have either £75,000/year income plus a mortgage, investment, life insurance or protection product with HSBC; or have £50,000 saved/ invested with HSBC)
- Overdraft: £500 at 0%, then 39.9% EAR variable
Free worldwide family travel insurance with no monthly fee 

The HSBC Premier account gives you worldwide family travel insurance up to age 69 (see full info on what the insurance covers).

Plus, with this account you can transfer cash fee-free between different HSBC accounts you hold in different countries, and you also get discounts on other products, for example, HSBC mortgages.



Citigold Current Account


Account info:

- Monthly fee: None (or £75/mth if you don't keep a minimum balance of £150,000 across Citi UK accounts)
Free worldwide travel insurance, but high balance needed to keep it fee-free.

The Citigold Current Account from Citibank offers worlwide family travel insurance to those who are 79 or younger (see full info on what the insurance covers).

Plus, if you often bank in different currencies, Citi gives you free US dollar and euro accounts as well as your sterling account, plus fee-free transfers to other Citi accounts.

TABLE_CELL_STYLE

Our service ratings are from our Jan 2023 poll of 4,000 people.

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Packaged bank account FAQs

  • Will I be credit-checked when applying for a packaged account?

    Banks use the same credit-scoring procedures – where they assess whether they want you as a customer – for packaged accounts as they do with normal accounts.

    So if the account includes an overdraft you'll be credit-checked in the usual way. For more info on how this works, and what lenders are looking for, see Credit Scores.

  • How does it work with reward payments and tax?

    The personal savings allowance (PSA) means you can earn up to £1,000 from savings interest without paying tax. However these reward payments don't count as savings income for tax purposes and instead are classed as 'annual' or 'miscellaneous' payments. This means the rewards don't count towards your PSA, and they're still liable to be taxed.

    If you're a non-taxpayer, you should claim back any tax taken using the R40 form. Higher and additional-rate taxpayers may need to pay more via tax returns.

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