Packaged bank accounts charge a monthly fee but bundle valuable perks like travel insurance and breakdown cover. Here’s how to work out if they’re worth it for you.
How Packaged Accounts Work
| What You Get | What You Pay |
|---|---|
| Travel insurance | £10-£25/month |
| Breakdown cover | (£120-£300/year) |
| Mobile phone insurance | |
| Car hire excess cover | |
| Other perks vary |
The key question: would you pay for these benefits separately?
Best Packaged Bank Accounts Compared
| Account | Monthly Fee | Annual Cost | Key Benefits |
|---|---|---|---|
| Nationwide FlexPlus | £13 | £156 | Worldwide travel insurance, breakdown, phone |
| Club Lloyds | £3 | £36 | Lifestyle benefits, 6 cinema tickets/year |
| Lloyds Platinum | £21 | £252 | Premium travel insurance, breakdown |
| Halifax Ultimate Reward | £17 | £204 | Travel, home emergency, phone |
| Santander Select | £20 | £240 | Travel, breakdown, phone, entertainment |
| Barclays Premier | £12 | £144 | Travel insurance, preferential rates |
| NatWest Reward Platinum | £20 | £240 | Travel, breakdown, tech, phone |
Nationwide FlexPlus
| Feature | Details |
|---|---|
| Monthly fee | £13 |
| Travel insurance | Worldwide, family cover |
| Breakdown cover | UK & European |
| Phone insurance | Up to £1,500 |
| Age limit | Travel: up to 74 |
Value Calculation
| Benefit | Standalone Cost |
|---|---|
| Family travel insurance | £80-£150/year |
| Breakdown cover | £60-£120/year |
| Mobile phone insurance | £80-£150/year |
| Total standalone | £220-£420/year |
| FlexPlus annual cost | £156/year |
Potential savings: £64-£264/year if you’d use all benefits.
Who It Suits
- Families who travel abroad
- Drivers without existing breakdown cover
- People with expensive phones not already insured
Club Lloyds
| Feature | Details |
|---|---|
| Monthly fee | £3 (free if £2,000 deposited monthly) |
| Interest on balance | Up to 5% on £1-£5,000 |
| Lifestyle benefits | Choose one per year |
| Cinema tickets | 6 per year |
Lifestyle Benefit Options
- 6 cinema tickets
- Magazine subscription
- Coffee subscription
- Gourmet Society membership
Value Calculation
| Benefit | Approximate Value |
|---|---|
| 6 cinema tickets | £60-£90 |
| Interest on £5,000 | Up to £250/year |
| Potential value | £310+/year |
| Annual cost | £36 (or £0) |
Excellent value if you can deposit £2,000/month to waive the fee.
Halifax Ultimate Reward
| Feature | Details |
|---|---|
| Monthly fee | £17 |
| Travel insurance | Worldwide, family |
| Home emergency cover | Up to £500/callout |
| Phone insurance | Up to £2,000 |
| Car hire excess | Included |
Value Calculation
| Benefit | Standalone Cost |
|---|---|
| Family travel insurance | £80-£150/year |
| Home emergency cover | £50-£100/year |
| Mobile phone insurance | £80-£150/year |
| Car hire excess insurance | £30-£50/year |
| Total standalone | £240-£450/year |
| Halifax annual cost | £204/year |
Suits those wanting comprehensive home and travel protection.
Santander Select
| Feature | Details |
|---|---|
| Monthly fee | £20 |
| Travel insurance | European or Worldwide |
| Breakdown cover | UK |
| Phone insurance | Up to £1,000 |
| Entertainment | Discounts and offers |
Requirements
- £500/month minimum deposit, OR
- £5,000 savings balance, OR
- Santander mortgage
Better for existing Santander customers who meet requirements.
Barclays Premier
| Feature | Details |
|---|---|
| Monthly fee | £12 |
| Travel insurance | Worldwide, family |
| Preferential rates | On mortgages, loans |
| Dedicated support | Premier phone line |
Requirements
- Annual income £75,000+, OR
- £100,000 in savings/investments
Exclusive account for high earners/high net worth individuals.
Are Packaged Accounts Worth It?
Worth It If You:
- Travel abroad at least once per year
- Have a smartphone worth £300+
- Don’t have existing breakdown cover
- Would buy these insurances anyway
- Have dependents to cover
Not Worth It If You:
- Rarely travel
- Have insurance through work
- Have an older/cheaper phone
- Already have breakdown cover with your car
- Won’t use most benefits
Packaged Account Calculator
| Question | Yes = +1 | Your Score |
|---|---|---|
| Do you travel abroad at least once/year? | ||
| Do you have a smartphone worth £300+? | ||
| Do you lack breakdown cover? | ||
| Would you use home emergency cover? | ||
| Do you have family members to cover? | ||
| Total |
Score 3+: Packaged account likely good value
Score 1-2: Check if specific benefits match your needs
Score 0: Stick with a free current account
What to Check Before Signing Up
Insurance Exclusions
| Common Exclusion | Details |
|---|---|
| Age limits | Travel insurance often stops at 65-75 |
| Pre-existing conditions | Medical conditions may not be covered |
| Trip length | Usually max 31-45 days per trip |
| Phone condition | Must be in good working order |
| Breakdown | May exclude vehicles over certain age |
Claims Process
Before choosing, check:
- How to make claims
- Excess amounts
- Claims limits
- Customer reviews for claims handling
How to Switch to a Packaged Account
- Compare accounts — Use this guide
- Calculate value — Will you use the benefits?
- Check eligibility — Some have income requirements
- Apply online — Most banks offer online applications
- Use Current Account Switch Service — Moves everything in 7 days
- Register for benefits — Some perks need activating
Downgrading or Cancelling
If you find you’re not using the benefits:
- Review usage — Have you made any claims?
- Contact your bank — Ask to downgrade to free account
- Keep cover until switch — Don’t cancel if you have trips booked
- Consider alternatives — Buy only the insurance you need
Summary
The best packaged account depends on your circumstances:
- Best overall value: Nationwide FlexPlus (£13/month)
- Best budget option: Club Lloyds (£3/month or free)
- Best for premium benefits: Halifax Ultimate Reward (£17/month)
- Best for high earners: Barclays Premier (£12/month)
Always calculate whether you’d buy the included benefits separately — if the standalone cost exceeds the monthly fee, a packaged account could save you money.