1. MoneySavingExpert.com
  2. Banking
Skip to content of guide

In this guide

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

FAQs Privacy Past Emails Unsubscribe

Top packaged bank accounts

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

Chris Collier
Chris Collier | Edited by Helen Saxon
Updated 19 September 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.

Skip to content of guide

In this guide

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

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.

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

 

Virgin Money Club M

Service rating: 41% 'great'

Account info:

- Monthly fee: £12.50 (£150/yr)

- Minimum pay-in: None

- Overdraft: 19.9%, 29.9% or 39.9% EAR variable
Top pick packaged bank account for families

The Virgin Money Club M account offers family travel, breakdown and mobile phone cover, which also includes gadgets such as tablets and laptops. Equivalent policies bought separately would cost up to £500. Its travel insurance extends to age 74, though the breakdown cover is UK only.

 

It has the cheapest monthly fee of all our top picks and pays 2.02% interest on up to £1,000, which can offset some of the fee (though this rate can be beaten by the top savings).

Key insurance info:
- Family mobile phone and gadget cover
- World family travel insurance (max age 74)
- UK breakdown cover for account holders

See full 'what the insurance covers' info.

 



Nationwide
FlexPlus

 

Service rating: 78% 'great' 
 

Account info:

- Monthly fee: £13 (£156/yr)

- Minimum pay-in: None

- Overdraft: 39.9% EAR variable
Another good option for families, but without gadget cover

Nationwide's FlexPlus offers similar cover to Virgin Money's Club M account above, worth up to £500. Here, the whole family's phones are covered by the account, though gadget cover is not included. Its breakdown cover for account holders extends to UK and Europe.
 

At £13/mth, it's slightly more expensive than Virgin, though Nationwide is rated much higher for customer service, so could be worth considering.

 

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.



Co-op Bank
Everyday Extra

 

Service rating: 49% '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/mth back in cashback if you jump through some hoops. If you can commit to this, it's then cheaper than Nationwide – 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: 55% '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
Good if you want home emergency cover

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.

 

It's £17/month, though if you're willing to jump through some hoops there's £5/month cashback up for grabs. Be sure to read full info.

 

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 July 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 July 2023 poll of 4,000 people.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

FAQs Privacy Past Emails Unsubscribe

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.

Share this guide
MSE Forum

Have your say in our forum!

Top packaged bank accounts

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com

MSE tools & calculators

Clever ways to calculate your finances 

Credit Card Eligibility

See which cards are likely to accept you

Tool

Loans Eligibility

See which loans you've the best chance of getting

Tool

MSE App

Get MSE on your Apple or Android phone

Tool

Broadband Unbundled

Compare broadband deals & save

Tool

Mortgage best buys

Compares thousands of mortgages

Tool

Mortgage Calculator

Eight calcs for all your mortgage sums

Tool
Tools and calculators

What the * means above
If a link has an * by it, that means it is an affiliated link and therefore it helps MoneySavingExpert stay free to use, as it is tracked to us. If you go through it, it can sometimes result in a payment or benefit to the site. It's worth noting this means the third party used may be named on any credit agreements.

You shouldn’t notice any difference and the link will never negatively impact the product. Plus the editorial line (the things we write) is NEVER impacted by these links. We aim to look at all available products. If it isn't possible to get an affiliate link for the top deal, it is still included in exactly the same way, just with a non-paying link. For more details, read How this site is financed.

MoneySupermarket.com Financial Group Limited is authorised and regulated by the Financial Conduct Authority (FRN: 303190). The registered office address of both MoneySupermarket.com Group PLC and MoneySupermarket.com Financial Group Limited (registered in England No. 3157344) is MoneySupermarket House, St. David's Park, Ewloe, Chester, CH5 3UZ. MoneySavingExpert.com Limited is an appointed representative of MoneySupermarket.com Financial Group Limited.