- Traditionally, people chose their bank account based on the interest rate.
- However, there a number of bank accounts offering alternative benefits. These are often known as ‘packaged accounts’.
- These extras often include various forms of insurance.
- Many ‘packaged’ accounts charge a monthly fee.
- Some of these services, such as personal budgeting, have no monetary value.
Traditionally, people chose their bank account based on the interest rate – a way of making their money grow.
But these days, with interest rates much lower than they used to be, more and more people are looking for accounts with other benefits.
The number of bank accounts offering alternative benefits – often known as ‘packaged accounts’ – has been growing in recent years. It’s estimated that more than 10 million people in the UK now use some kind of packaged bank account.
So what benefits can you expect – and are they worth the bother? Well, it all depends on your own needs, and how much you’re willing to pay.
Bank account benefits to look out for
Benefits can vary from account to account, but some of the things you’ll find include:
- Travel insurance
- Phone/gadget insurance
- Roadside emergency cover (e.g. AA membership)
- Free music/video downloads
- Personal budgeting service
- Interest-free overdraft
- Better deals on other financial products, such as loans and mortgages
There is usually a monthly fee for accounts that offer these services, but occasionally you’ll get some of them with ‘free’ accounts too.