Are packaged accounts worth it?
Banks make money from these accounts – they want you to have them. But this doesn’t mean that they’re a waste of money for all – quite the opposite.
For those who are 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 added extras, or can insure cheaper elsewhere, don’t bother with a packaged account.
Start by multiplying the monthly cost by 12 – for example, £25/month is £300/year – then see if you can buy the ‘freebies’ for less. If you can, either ditch and switch to a fee-free accountor shift for better value.
Packaged accounts DOs & DON’Ts
DO make sure you can’t buy cheaper
DON’T let salespeople ‘upsell’ you
DO check whether you were mis-sold
DON’T ignore joint accounts
DO check policy limits
DON’T assume they’ll improve your credit rating
DO make sure everything you need is covered
DON’T need extras? Bag £150 bonus
DO declare any pre-existing medical conditions