Best packaged bank accounts – how to get breakdown, travel and mobile phone insurance worth £600 for £156 a year
Packaged accounts offer a range of perks for customers for a monthly fee
FANCY getting your travel, car and mobile phone insurance from your bank?
Well with packaged accounts, you can get all this and more - if you use them properly.
The Sun takes a look at the best accounts on the market.
What are packaged bank accounts?
Packaged accounts do exactly what your usual current accounts do - except they offer a range of extras and services thrown in on top.
So for example, you might get travel and breakdown insurance thrown in as part of the deal, or in some cases an interest-free or cheaper overdraft.
You have to pay a monthly fee to get these benefits but the idea is the perks all come in one handy bundle via your account.
What do I need to know about packaged accounts?
So packaged accounts sound great, right?
Well, not exactly - as well as paying a monthly fee, you need to be aware of a few things.
Firstly you'll need to work out if the bonuses you're getting are good value compared to buying the insurance separately.
For most of the accounts, you'll be paying around £15 a month (£180 a year), so you could, for example, get cheaper travel insurance, especially if you only go on one holiday a year.
What to do if you were mis-sold a packaged account
LOTS of Brits have had packaged accounts - but many of them were mis-sold.
The Financial Conduct Authority (FCA) found that many of the perks which were packaged with the accounts didn't actually provide cover for customers - banks have a responsibility to make sure the insurance was right for the customer at the point it was sold, while others were "up-sold" the accounts by staff too.
If you think you have been mis-sold one, or you didn't realise you were paying a monthly fee for the benefits, then you should complain directly to your bank.
You can use free tool to do this.
On top of that, the insurance you get with the account might be pretty basic, so make sure the policy will cover you for everything you need - otherwise you could be let down at your time of need.
And while many Brits have enjoyed the benefits a package account brings, lots of bank customers were mis-sold them too.
What are some of the best package accounts on the market?
Here are some of the leading packaged accounts on the market.
Remember to make sure that the one you go for offers value for money for services you actually need and that you're completely clear about the policy exclusions.
Monthly fee: £13 (£156 a year)
Benefits:
- Worldwide family travel insurance up to the age of 74 for the account holder, partner and children. Includes golf, winter sports and business trips
- 3 per cent interest on balances up to £2,500
- Worldwide family phone cover
- UK and European car breakdown
- £250 interest free overdraft
- MoneySavingExpert estimates that all these perks could be worth £600 to a customer
Monthly fee: £17 a month (£204 a year) if you pay in at least £750 a month, stay in credit and set up at least two direct debits or£14 a month (£168 a year) if you don't
Benefits:
- Worldwide family travel insurance up to the age of 71 for the account holder, partner and children. Includes golf, winter sports and business trips
- UK breakdown cover
- £300 fee-free overdraft
- Mobile phone cover worth up to £2,000
- Home emergency cover up to £250
Monthly fee: £15 a month (£180 a year)
Benefits:
- Worldwide family travel insurance up to the age of 80
- UK and European breakdown cover
- Mobile phone cover but only for the account holder
Monthly fee: £20 a month (£240 a year)
Benefits:
- Worldwide family travel insurance, including winter sports up to the age of 70
- Mobile phone cover but only for the account holder
- UK breakdown cover which applies to all vehicles at your registered address
- 2 per cent cashback on eligible household bills paid by direct debit including council tax, gas and electricity and broadband
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