What Is a Packaged Bank Account and Is It Worth the Fee?
Packaged Accounts: Banking with Benefits
A packaged bank account charges a monthly fee (typically £10–£25) in exchange for bundled additional benefits — commonly travel insurance, mobile phone insurance, breakdown cover, and preferential rates on other products.
Common Benefits Included
- Worldwide family travel insurance, often including winter sports
- Mobile phone insurance — accidental damage, theft, and loss
- UK and European breakdown cover
- Home emergency cover — plumbing, electrics, boiler
- Commission-free currency exchange or reduced foreign fees
Popular UK Packaged Accounts
Nationwide FlexPlus (~£13/month) and Barclays Avios Rewards (~£12/month) are frequently cited as good value. FlexPlus includes worldwide family travel insurance, mobile phone insurance, and European breakdown cover — buying these separately typically costs more than the monthly fee.
When It Makes Sense
Calculate what included insurance products would cost individually. If you travel twice or more per year, have a family, own a car, and use your smartphone daily, a packaged account at £15/month (£180/year) often beats buying the same cover separately for £300–£400.
When to Avoid One
- You rarely travel abroad
- You don't own a car or need breakdown cover
- Your phone is old or you have existing handset insurance
Mis-sold Packaged Accounts
If you were sold a packaged account without the benefits being explained, or if you're ineligible for the included insurance, contact your bank's complaints team. Escalate to the Financial Ombudsman Service if unresolved — this service is free to consumers.
