Comparing hundreds of products for each of your financial needs can be exhausting (we should know). So the idea of getting travel insurance, device insurance and breakdown cover with your bank account, all for one simple monthly fee, certainly sounds appealing.
Packaged bank accounts with travel insurance
Nationwide – FlexPlus – Worldwide Family Travel Insurance
Virgin Money – Club M – Worldwide family multi-trip travel insurance from AIG
Revolut – Metal – Worldwide emergency medical and dental cover
Monzo – Max – Worldwide personal travel insurance provided by Zurich
Packaged bank accounts with purchase protection
Revolut – Metal – Purchases are covered up to £10,000 for a year, whether damaged or stolen
Packaged bank accounts with cashback
Revolut – Metal – Earn RevPoints through everyday spending, turning card purchases into perks like Revolut Stays discounts and air miles.
Packaged bank accounts with mobile phone insurance
Nationwide – FlexPlus – Worldwide Family Mobile Phone Insurance
Virgin Money – Club M – Mobile and gadget insurance from Assurant
Packaged bank accounts with breakdown cover
Nationwide – FlexPlus – UK and European breakdown assistance
Virgin Money – Club M – UK Breakdown cover from Green Flag
Monzo Max is Monzo’s premium bank account. It costs £17 a month, but comes with plenty of perks that could offset the monthly fee. The biggest draw cards are worldwide travel insurance, UK and Europe breakdown cover and worldwide phone insurance. If you pay for those things anyway then this account could save you money just with that. It also comes with a weekly treat from Greggs and a Trainline railcard each year, which could save you up to a third or more on eligible journeys. On top of that, it pays a higher rate of interest on instant access savings pots and its Cash ISA than other Monzo accounts.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable. Account fee of £17 per month.
Pros
FSCS protection
Worldwide travel insurance
UK & European breakdown cover
Worldwide phone insurance
Cons
No branches
£17 monthly fee applies
Additional £5 monthly fee if you'd like to add family
Minimum opening balance
£0
Account fees
£17.00 per month
Overseas card transactions
0%
Overseas cash withdrawals
Europe: UK/EEA - 0% Elsewhere: 0% conversion fee plus a cash fee of 0% on up to £600 per 30 days (3% thereafter)
£175 cashback for accounts switched using the Current Account Switch Service, including at least 2 direct debits.
This packaged account from Nationwide offers a range of perks in return for a monthly fee. Account holders can benefit from worldwide family travel insurance, including winter sports, golf, weddings and business cover, plus mobile phone insurance and UK and European breakdown cover. Mobile phone cover also includes your partner’s and dependent children’s phones, while breakdown cover has no excess to pay and unlimited callouts. The Visa debit card that comes with the account does not charge transaction fees when you withdraw cash or make payments abroad. The account will also give you access to exclusive savings accounts from Nationwide, and has the option of an arranged overdraft. You can apply for the account on your own, or with a partner, a family member or a friend. Through the app, you can manage all your accounts and freeze and unfreeze your debit card.
Pros
Includes travel insurance, mobile phone insurance and breakdown cover
Covers account holder, partner and up to 4 dependent children aged under 18.
In return for a monthly account maintenance fee, the Virgin Money Club M account offers a range of benefits. These include interest paid on credit balances and an exclusive linked savings account. Account holders can also enjoy worldwide family multi-trip travel insurance, including their own concierge service and 24-hour medical advice. Plus, the account's contactless debit card does not charge fees for foreign spending or making cash withdrawals in the UK or abroad. A range of gadgets, including mobile phones, laptops and cameras will also be insured worldwide and you’ll have UK breakdown cover for your car. You’ll also be able to arrange an overdraft and you can apply for the account online or over the phone as long as you’re aged 18 or over. In addition, the Virgin Money app can help you set up budgets, top up your savings and sort out your spending.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 19.9% EAR variable. Account fee of £12.5 per month.
Pros
Range of insurance policies included with the account
In exchange for a monthly fee, this account from Revolut offers a range of benefits and features. Interest is paid daily on savings. Account holders can also enjoy fee-free ATM withdrawals abroad (up to a set limit) and three fee-free international transfers each month. Purchase protection is also included for a year, whether your purchases are damaged or stolen, and ticketed events are also covered. The account is particularly beneficial for keen travellers, offering RevPoints, exclusive rates and no booking fees when you book certain accommodation across the world. RevPoints are earned through everyday spending, turning card purchases into perks. You’ll also benefit from worldwide travel insurance and airport lounge access. The account offers unlimited commission-free trading for those who want to start investing, too.
Pros
Fee-free withdrawals abroad
Purchase protection
Discounts on holiday accommodation
Travel insurance and airport lounge access
Cons
Monthly fee applies
No overdraft available
App-based account
Minimum opening balance
£0
Account fees
£14.99 per month
Overseas card transactions
0% Mon-Fri
Overseas cash withdrawals
0% Mon-Fri conversion fee plus cash fee of Free up to £800 per month
Earn 4 Rewards per month by making at a minimum of 2 direct debit payments of at least £2 each.
The NatWest Reward account charges a small monthly fee. In return, you can earn from 1% in Rewards at selected retail partners, as well as £4 a month in Rewards for 2 or more direct debits on the account, plus an extra £1 a month with 1 mobile log in. Once you reach £5 in Rewards, you can redeem it as cashback, trade it up for gift cards or e-codes with NatWest’s retail partners or donate it to charity. The account also offers an arranged overdraft as well as a Round Ups feature to help you round up your spending and transfer it to a savings account.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.49% EAR variable. Account fee of £2 per month.
Pros
Easy to earn rewards
Rewards can be exchanged for cashback, gift cards, e-codes or charity donations
Earn £4 back in Rewards per month by making at a minimum of 2 direct debit payments of at least £2 each.
With this account from RBS, you’ll be able to earn from 1% in Rewards at selected retail partners, as well as £4 a month in Rewards for 2 or more direct debits on the account, plus an extra £1 a month with 1 mobile log in. Once you reach £5 in Rewards, you can redeem it as cashback, trade it up for gift cards or e-codes with RBS retail partners or donate it to charity. There's a small monthly fee for the account and you’ll need to pay in a set amount each month to qualify.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.49% EAR variable. Account fee of £2 per month.
Pros
Easy to earn rewards
Rewards can be exchanged for cashback, gift cards, e-codes or charity donations
This account from Lloyds offers a whole host of benefits such as worldwide family travel insurance, breakdown cover in the UK, plus worldwide mobile phone insurance (only one phone per account holder). Interest is also paid on credit balances, and you can choose a lifestyle benefit each year, including cinema tickets, movie rentals or an annual magazine subscription. Plus, you’ll get cashback at selected retailers. In return you will need to pay a monthly Platinum fee as well as a Club Lloyds fee. However, the Club Lloyds fee is refunded each month you pay in a set amount.
Pros
Worldwide family travel insurance, breakdown cover and mobile phone insurance
Overdraft available
Option to choose extra rewards to suit you
Cons
Monthly fee
Need to meet strict eligibility criteria to benefit from rewards
Revolut Premium is a great option for keen travellers. In return for a monthly fee, you can enjoy RevPoints when you book accommodation through Revolut Stays, as well as benefit from worldwide emergency medical and dental cover, plus delayed flight and baggage insurance. You’ll also be able to spend, exchange and transfer unlimited amounts of money at great exchange rates, with no fees on weekdays, as well as withdraw up to £400 fee-free each month from ATMs abroad. On top of that, you’ll be covered for purchases up to £2,500 a year, whether they are damaged or stolen.
Pros
Fee-free spending in the UK and abroad
Purchase protection of up to £2,500 a year
Worldwide emergency medical and dental cover
RevPoints when booking through Revolut Stays
Option to earn interest on Savings Vaults
Cons
A monthly fee applies
Revolut isn’t covered the the Financial Services Compensation Scheme (FSCS)
Minimum opening balance
£0
Account fees
£7.99 per month
Overseas card transactions
0% Mon-Fri
Overseas cash withdrawals
0% Mon-Fri conversion fee plus cash fee of Free up to £400 per month
£75 cashback for accounts switched using the Current Account Switch Service.
With the Co-op Everyday Extra account, you will be able to enjoy mobile phone insurance, worldwide family travel insurance and UK and European breakdown cover in return for a monthly fee. You’ll also be able to opt into Everyday Rewards at no extra cost, and earn up to £2.20 a month when you spend on your debit card. Rewards can be paid into your account or you can donate to charity. The account also offers an optional overdraft and can be opened on a joint or individual basis. It can be managed online or in the mobile app.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 35.9% EAR variable. Account fee of £15 per month.
Pros
Mobile phone insurance
Worldwide travel insurance
UK & European breakdown cover
Earn cash through Everyday Rewards
Cons
£15 account management fee
You’ll need to meet certain criteria for insurance benefits
Interest charged on overdraft
Minimum opening balance
£0
Minimum operating balance
£0
Switch service guarantee
Yes
Account fees
£15 per month
Overseas card transactions
2.75%
Overseas cash withdrawals
2.75%
Minimum opening balance
£0
Account fees
£15 per month
Interest (AER)
0% AER
Halifax Ultimate Reward Current Account - with Reward Extras
Pay a monthly fee for the Halifax Ultimate Reward account and you’ll benefit from perks including worldwide multi-trip travel insurance, breakdown cover, mobile phone insurance and home emergency cover. In addition, you’ll receive a Rewards Extra offer each calendar month, such as movie rentals, cinema tickets, digital magazines or cash (you’ll need to meet certain conditions to qualify). Plus, you’ll be able to earn cashback at selected retailers, benefit from card cancellation cover and make use of the Save the Change feature. The account can be opened individually or jointly and comes with a contactless Visa debit card.
Pros
Offers a variety of perks including travel insurance and breakdown cover
Option to choose extra rewards to suit you
New customers switching get a 6-month 0% overdraft
Earn cashback at certain retailers
Option to open single or joint account
Easy to open and manage account online
Cons
Monthly fee
Need to meet strict eligibility criteria to benefit from rewards
Overdraft charges are high once interest-free period ends
You may not make full use of the perks on offer, in which case paying the fee will be wasted
Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit or debit card.
The Club Lloyds account offers a range of benefits in return for a monthly fee - however, if you pay in a set amount each month the fee is waived. You’ll be able to choose a lifestyle reward each year, such as cinema tickets, an annual magazine subscription or movie rentals, as well as earn interest on credit balances and earn cashback at selected retailers. The account also gives you access to exclusive banking offers from Lloyds, such as savings accounts and mortgages, and you’ll benefit from a Save the Change feature, helping you to round up card payments and save as you spend.
Pros
Interest paid on balances up to £5,000
Selected rewards and cashback offers
Preferential exchange rates
Exclusive banking offers available
Choose 1 "lifestyle benefit" each year, such as a TV, coffee or magazine subscription
Cons
You’ll need to pay in at least £2,000 each month or pay £3 a month
You must pay out 2 direct debits each month to qualify for interest
Highest interest rate only paid on balances between £4,000 and £5,000
Overdraft rates are 27.5% EAR (£50 buffer)
Minimum opening balance
£1
Minimum operating balance
£1
Switch service guarantee
Yes
Account fees
£3.00
Overseas card transactions
Europe: 2.99% plus flat fee of £0.50. Elsewhere: 2.99% plus flat fee of £0.50
Overseas cash withdrawals
Europe: 2.99% conversion fee plus a cash fee of £1.50. Elsewhere: 2.99% conversion fee plus a cash fee of £1.50
A packaged bank account is a current account that comes with a set of benefits and perks in return for a monthly fee.
The advantage is that you’re all sorted and don’t have to worry about purchasing insurance separately. The disadvantage is that it may not necessarily be the cheapest option. Don’t mistake packaged bank accounts with premier bank accounts. Premier bank accounts usually require you to have a certain level of income in order to apply to get extra benefits.
Which benefits can I get with a packaged bank account?
It depends on the account, but you normally get a range of insurance options plus, in some cases, some extra rewards or perks.
Current accounts with travel insurance
Travel insurance is a standard feature of packaged accounts. Whether it’s cheaper purchasing it separately mostly depends on how often you travel.
You should also consider that in some cases, the travel insurance provided by the account has an age limit, so if you’re beyond that, you won’t be covered. Finally, always let your bank know if you have any pre-existing medical conditions because they may not be covered by the policy.
Current accounts with device insurance
Most packaged accounts also have device or mobile phone insurance. Depending on the cover, this means that if your phone (or laptop if included in the policy) is lost, damaged or stolen, you’ll be able to submit a claim and get some money back.
Needless to say, whether it’s worth ensuring your device will mostly depend on how much the device itself is worth. However, also consider the economic costs that could arise if you lost important data you had on your device (which of course will not happen because you have a full backup of those someplace safe… right?).
Current accounts with breakdown cover
Another common feature of packaged current accounts, breakdown cover is highly recommended if you drive often, especially if your not-so-new car has seen better days. Knowing that if it breaks down you can call for help without it costing you a fortune can give you great peace of mind.
However, breakdown cover is also a pretty standard car insurance feature, so you should definitely check that you aren’t already paying for it anyway.
Extra rewards
Some packaged accounts also allow you to earn extra rewards or discounts. Now, those won’t be enough to justify the monthly fee on their own, but it can help you make a choice if you’re unsure.
For example, you could be able to earn cashback on your household bills or get a discount when you shop at certain retailers.
Are packaged accounts worth it?
That’s the million dollar question. There’s no universal answer, but here are a few things you should think about that can help you figure it out:
How much does the account cost per year? It’ll help you when it comes to comparing the account to purchasing insurance independently.
Will you actually use the benefits? This can be broken down into: how often do you travel? Is your phone worth insuring? Do you drive at all?
Are you already covered? Breakdown cover could be included in your car insurance, mobile insurance could come with home insurance if you have one, and some credit cards also offer travel insurance.
Which level of cover do you need? Packaged accounts tend to provide high cover levels, but in many cases you may be just fine with a less comprehensive policy.
How much will it cost to purchase insurance independently? The only way to find out is getting independent quotes for the insurance products you need and then compare the costs.
Is there a switching incentive? Banks often run switching incentives for you to close down your old account from another bank and move to a packaged bank account. It might be worth browsing the latest switching offers for packaged bank accounts.
Finally, don’t forget that your time is worth something. If purchasing insurance independently will only save you a few pounds and is a much more of a hassle, it may be worth just going for the packaged account and forgetting about it.
What to do if you think you’ve been mis-sold a packaged bank account
Banks are bound by rules that mean that they need to have checked that any products they sell you, including insurance, is suitable for you. For example, a bank cannot sell you a packaged bank account that includes insurance without first checking that you’re eligible for the cover. So you shouldn’t be in a position where you make a claim on the insurance only to find that you were never eligible for the cover in the first place, perhaps because you’re too old or have an existing long-term medical condition that would invalidate the policy.
Banks are also prohibited from forcing you to buy products in order to qualify for loan facilities, such as a mortgage or an overdraft. They are also prevented from “upgrading” your regular bank account to a premium offering, such as a packaged account, without first obtaining your consent.
You may be able to claw back any fees you’ve had to pay in order to receive the packaged bank account if you signed up for a packaged bank account based on any of the scenarios above or:
On the basis of information or advice that you felt was misleading.
The full cost was kept from you before you purchased.
You were the victim of pressure selling tactics by a bank employee
If you feel that you’ve been sold a packaged account in any of these circumstances, there are some things you might want to try to get some financial redress:
Contact your bank to reclaim your packaged bank account fees. The first thing to try is to write to your bank. Your bank’s website will usually inform you how to submit a complaint. It tends to be best to make your complaint in writing, that way there is a firm paper trail of your exchange. In your letter you should include as much information as possible to explain why you feel your packaged account was mis-sold. The bank will then have to determine whether the circumstances in which you bought the packaged account were unfair.
Escalate your complaint to the Financial Ombudsman Service. Banks don’t give back money easily, so sadly you may have to be prepared to fight your corner and be persistent. If your bank’s initial response to your complaint is to refuse a refund for the account fees you’ve already paid, then you should escalate your complaint to the Financial Ombudsman Service (FOS). FOS is an official body that settles disputes between financial institutions and their customers. It’s a powerful organisation because its decisions are legally binding on the firm involved in the dispute. This means that if the ombudsman finds in your favour (or “upholds” your complaint), then your bank must accept that it is liable for making amends. To be able to escalate your complaint to FOS you have to first obtain a document from your bank called a “letter of deadlock”, which confirms that your dispute has not been resolved. Citizens Advice has full details on how to obtain a letter of deadlock in order to bring a complaint to the Ombudsman.
Pros and cons of packaged bank accounts
Pros
Great peace of mind because you can be fully insured 12 months a year.
One straightforward monthly fee.
Don’t need to purchase insurance separately every time you travel.
High-end cover levels.
Cons
You may not need all the benefits, in which case it isn’t great value for money.
The idea of getting insurance and other perks alongside your bank account for a monthly fee can certainly be an attractive proposition.
The key is to work out whether the benefit you may get from the various features of a packaged account are worth the monthly or annual fees that you’ll need to pay to maintain your account. How much value you’ll be able to get from these types of accounts will depend on your personal circumstances. For example, if you travel a fair amount each year for work or leisure, getting a packaged account with a decent level of travel insurance cover may be great value.
If you’re interested in signing up to a particular packaged account, check if you’d be able to get the account’s benefits more cheaply if bought esparately. For example, device insurance can be bought for as little £4-5 per month. If this is the main account feature you’re interested in, you may find it cheaper elsewhere.
At the end of the day, packaged accounts can offer great value if you’re relatively sure that you’ll be able to take full advantage of all the features they offer, but always do your research.
Frequently asked questions
Yes. It’s a good way of boosting your account benefits because the insurance provided will normally cover both account holders for the same fee.
Packaged accounts work just like regular current accounts, so as long as you pass the credit checks you can usually get an overdraft quite easily.
Packaged accounts have often been mis-sold in the past. If, for example, you’ve been paying the monthly fee even though you were unable to claim the benefits (say, because you’re over the age limit of the insurance policy provided), you may be able to claim the fee back. Try filing a complaint with your bank first; if it isn’t resolved in your favour, you can take it to the Financial Ombudsman Service.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been edited by Kate Steere as part of our fact-checking process.
Valentina Cipriani was a writer at Finder UK. She wrote news, features and guides about banking and credit cards, helping people to improve their financial lives. She holds an MA in International Journalism. See full bio
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