Packaged current accounts become the norm

by Gill Montia

Story link: Packaged current accounts become the norm

Packaged bank current accounts, which include extras such as travel insurance and roadside rescue, are now more common than ordinary current accounts, research from Defaqto has shown.

According to the financial product expert, there are 64 packaged accounts on offer from UK banks against 61 standard current accounts, meaning the choice of packaged accounts has nearly doubled since June 2006, despite coming with a monthly fee.

The research also found that commission-free foreign currency and travellers’ cheques were offered by 91% of packaged accounts, with travel insurance following on at 81%.

Eight out of 10 packaged accounts offered preferential rates on savings accounts, while 72% provided mobile phone insurance.

However, the monthly fee charged on the typical packaged account has increased from £10.51 in June 2006 to £14.29 today, and consumer group Which? points out that packaged bank accounts are only worthwhile if they include benefits that are actually used or needed.