Packaged current accounts can provide some great benefits, and for a monthly fee, you'll receive a current account along with a range of extra perks, from travel insurance to breakdown cover.
If you use the extras included in the account, you can often make some impressive savings and some accounts include travel, gadget, breakdown and mobile phone insurance.
There are a range of bundled accounts to choose from, all offering different benefits. If you take one out, it's important you look at the insurance policies in detail as some include restrictions.
Here we look at them in a little more detail, to help you choose the best packaged bank account for you.
The accounts below all provide:
- Annual family worldwide insurance cover, including winter sports (with certain restrictions)
- Breakdown cover including towing, jumpstarting, and recovery around the country
- We have also highlighted those that include cover for Europe
| Provider | Score | Details |
|---|---|---|
| 1. Revolut | ★★★★★ | Learn more |
| 2. The Co-operative Bank | ★★★★★ | Learn more |
| 3. Nationwide | ★★★★★ | Learn more |
| 4. Virgin Money | ★★★★★ | Learn more |
| 5. Halifax | ★★★★★ | Learn more |
| 6. Monzo | ★★★★★ | Learn more |
The best-packaged bank accounts — Reviewed
Why do certain banks offer “bundled” current accounts?
Simply put, a packaged bank account is a type of current account that comes with additional perks and services. Travel insurance, car breakdown cover, and mobile phone protection are common examples.
Access to airport lounges, concierge assistance, discounts at local retailers, and cashback on purchases are just a few of the additional benefits offered by some providers.
However, this does not come without cost. You'll pay a monthly fee for a packaged account, which can be around £10 a month. Unless you're using all the perks included in the account – they may not be providing you with value for money.
Before you open a packaged account, look at the benefits carefully. If you think you will use them, and you can't find them cheaper elsewhere, it could be a good option. However, if not, a standard current account may serve you better.
Eligibility
Banks employ the same processes for packaged accounts as they do for regular accounts. They will need to see proof of your identity, usually a passport or driving licence, and your address.
If you are taking out an overdraft, a credit check will also be carried out. Check out this link on credit scores if you want to learn more about how this works and what information creditors look for.
| Account Name | Monthly Fee | Overdraft (EAR) |
|---|---|---|
| 1. Revolut Metal | £14.99 | N/A |
| 2. The Co-operative Bank Everyday Extra | £15 | 35.9% |
| 3. Nationwide ‘FlexPlus' | £13 | 39.9% |
| 4. Virgin Money Club M | £12.50 | 39.9% |
| 5. Halifax Ultimate Reward | £17 (£19 from 01/07/2024) | 39.9% |
| 6. Monzo Premium | £15 | 39% |
1. Revolut Metal — Top digital packaged account
Digital banks have risen in popularity over the last few years, as more and more people look for online and app-based banking.
Revolut is one of the major players in online banking, and its bundled account is the “Metal” plan. It is a mobile-first current account and debit card for £14.99 per month.
The account also includes many other perks, including worldwide travel insurance, for winter sports, the excess on a rental vehicle, lost bags, and legal cover. It says these add up to £1,750 per year.
The benefits on offer depend on where you live in the country, and you'll be shown all those available in your app. They can include discounts for the Financial Times, Deliveroo, Freeletics, Tinder, and NordVPN.
Key features:
- Discounts on airport lounges
- Free passes to a range of different companies, including WeWork and Headspace
- Exchange costs for cryptocurrencies and commodities, plus preferential savings rates.
- Unique metal card set
2. The Co-operative Bank Everyday Extra — Top all-rounder
The ‘Everyday Extra' account from The Co-operative Bank includes a current account and a bundle of insurance products for £15 a month.
It's very similar to the Nationwide packaged account below, and each provides worldwide travel insurance, which extends to spouses and children who live in the same house.
Mobile phone insurance and UK and European breakdown cover are also included in the package which has an upper age limit of 79.
The travel insurance in the bundle comes from AXA and covers a wide range of incidents and there is no excess to pay. Cover for personal accidents is included along with winter sports cover, for example.
You can also get insurance for your mobile phone anywhere in the world for up to £1,500 and your phone's accessories are covered up to £350. You will have to pay a £75 excess on any claims though.
Breakdown cover is provided by the RAC which includes vehicle rental for up to three days, and alternative transportation in the United Kingdom and across Europe.
Key features:
- Worldwide travel insurance with no excess to pay
- Mobile phones up to £1,500 covered
- Unlimited family coverage worldwide (up to age 79)
- Account holder(s) covered for car breakdowns in the UK and Europe
3. Nationwide ‘FlexPlus' — Second-best packaged account
Nationwide‘s FlexPlus account is often top when it comes to packaged accounts and it's easy to see why. At £13, it's also one of the cheapest packaged accounts you can choose from.
The building society eliminated some features in 2019 that made the account more attractive, such as an interest-free overdraft of £250 and 3% interest on balances up to £2,500.
Customers over the age of 65 now have to pay £65 to update their accounts, while the maximum age for travel insurance has been lowered from 75 to 70, which is lower than the Co-operative's insurance policy in our second place. However, despite these modifications, it continues to be a good all-rounder.
While the Co-operative limits you to two claims per year for one mobile phone per account holder up to the value of £1,500, Nationwide enables you to make four claims per year for phones owned by you or your family members up to a value of £2,000 each.
As for roadside assistance — this package provides unlimited roadside assistance both at home and in Europe and two cars may be insured under a single joint account.
Key features:
- No minimum deposit required
- Worldwide family travel insurance included
- Mobile phone cover for all family members
- Access to the Flex Instant Saver account and other premium savings options
4. Virgin Money Club M — Top choice for family holidays
If you are thinking about signing up for a Virgin Money Club M account, here's everything you need to know about the benefits.
This account costs £12.50 a month and it includes worldwide annual travel insurance, with winter sports, gold and weddings. You'll also get worldwide mobile and gadget cover for you and your family and breakdown cover.
Even if you don't have a joint account, you and your spouse (up to the age of 75) are covered, as are up to four dependent children under the age of 18 who live with you or attend full-time school at the same location.
After opening an account with Virgin, customers with pre-existing medical conditions may be subject to additional fees or even be denied coverage if they do not contact AIG, the insurer Virgin employs.
Key features:
- 2.02% interest paid on balances up to £1,000
- Coverage for all the electronics in the house
- Insurance for the whole family, wherever in the world (up to age 74)
- Account holders in the UK get breakdown assistance
5. Halifax Ultimate Reward — Great for home emergencies
Halifax Bank Ultimate Reward account is £17 so a little more than the picks we've already chosen but it does include a home emergency cover.
If you currently pay for home emergency protection and you know you will use the other insurance policies included with the account, it's a good choice.
The monthly fee is £17 (increasing to £19 in July 2024), and each month you can pick a monthly reward. These range from an extra £5 in your account to a free cinema ticket or three free digital magazines.
To qualify for a monthly reward, you'll need to spend £500 on your debit card each month or keep £5,000 or above in the account each day of the month. You'll also have to either pay £1,500 a month or more and stay on credit.
You'll get international family holiday insurance included and this covers winter sports and golf and allows for repeated journeys across the globe of up to 31 days each. The plan covers you and your spouse up to age 71 (or up to age 25 if they are still in school full-time), as well as any dependent children.
You'll also get mobile phone insurance, up to £2,000, and AA breakdown family cover. The home emergency cover is up to £250 per claim, although some exclusions apply.
Key features:
- Family worldwide travel insurance (up to age 70)
- Account holders in the UK get breakdown assistance
- Care for home emergencies such as floods or fires
- Monthly incentives include a £5 deposit into your account
6. Monzo Premium — Popular mobile packaged bank account
The Monzo Bank Premium account gives you a mobile-first current account and many additional features for £15 per month.
It includes phone insurance, for up to £2,000 (with a £75 excess), worldwide family travel insurance (with qa £50 excess per claim), and you can earn 4.60% AER on the bank's instant savings pots.
There are also some additional perks, including discounted airport lounge access, £600 worth of fee-free withdrawals abroad per month, and a range of shopping discounts.
The travel insurance is for a family of four anywhere in the world, including cancellation, medical expenses, snow sports, and lost or stolen items (subject to a £50 excess. You need to be between the ages of 18 and 69 to open this account, and there is a 6-month minimum commitment.
Key features:
- Lounge access at airports at a discount
- Discounts at retailers including Naked Wines, Fiit, and Patch
- Foreign ATM withdrawals of up to £600 are fee-free
- You'll get a white metal Monzo card
The pros and cons of packaged accounts
Let's take a brief look at the pros and cons of the UK’s best packaged bank accounts:
| Pros | Cons |
|---|---|
| ✅ Often costs less than purchasing the insurance policies on their own | ❌ Monthly costs: unless you use the features included they can be expensive |
| ✅ Most bundled accounts allow both joint account holders to share the benefits | ❌ May be exclusions in insurance policies |
| ✅ It's often easier to have banking and insurance needs from one provider | ❌ If the benefits can be found elsewhere for less money, it isn't a good deal |
| ❌ There may be restrictions for certain premium packaged bank accounts (such as a high income) |
Top packaged bank accounts — A buying guide
How do bundled accounts work?
If you want to save money and time on insurance, a packaged account may be the way to go. Just make sure you understand the fine print and you'll use the policies included.
Age limits
Travellers above the age of a certain threshold may not be covered. The typical maximum age covered by a tourist's insurance is between 69 and 80.
Those over the age of 70 may still get insurance but they will have to pay a premium. The fee is £75 at RBS/NatWest and £65 for Nationwide, however only one fee is required for joint account holders. Whether or if your pre-existing conditions are covered, you must still report them.
Illnesses and injuries
For older or sicker travellers, purchasing separate travel insurance may be too costly. However, before deciding on a financial institution, you should be aware that pre-existing medical conditions (PEMCs) are not always insured.
If you have any of these conditions, you must disclose them at the time of account opening or you may be subject to additional fees or reduced coverage.
Any significant changes to your health status should be reported to your insurer so they can re-evaluate you for coverage (and maybe increase your premium).
Fine print on claims
Nationwide and Barclays are more liberal than other banks when it comes to mobile phone insurance, covering up to four claims per year and just covering the phone itself. Coverage under the Barclays Tech Pack is limitless for devices up to £1,500 in price, including up to four mobile phones.
It covers an infinite number of repairs or replacements, four replacements for lost or stolen phones, and four replacements for any other kind of electronic device. You and your family members at the same address are covered if you have more than one phone with Nationwide.
Inquire more as to whether online smartphone registration is required in order to get the advantages promised by your bank.
Car breakdown insurance
Only NatWest/RBS, HSBC, and The Co-operative Bank limit the number of breakdown assistance visits you may make per year at five. The lowest-rated financial institutions (including Halifax, Bank of Scotland, Lloyds, and Virgin Money) will not pay for a replacement vehicle or provide lodging while yours is being repaired.
Was a packaged bank account offered to you in error?
Fee-based current and savings accounts are subject to regulations designed to prevent the improper sale of insurance.
These mandate that your service providers a) determine whether you are eligible to make a claim under each policy and inform you of this fact; b) determine whether each policy makes sense for you; and c) offer you yearly eligibility reports so you can check if bills if policies still work for you.
Other red flags to keep an eye out for include:
❌ You signed up without even realising it. The only acceptable reason for a bank to do this without your permission is if they are switching all of their clients from a free account to a bundled account.
❌ If your circumstances change, such as when you reach the maximum age restriction to file a claim on travel insurance policy, your provider is obligated to advise you that you are no longer eligible to file a claim.
❌ In order to get the perks, you must first activate them. Verify this requirement at account opening; failing to do so may render your insurance useless, notwithstanding your payment of premiums. You may have a case if your insurance claim is denied and you were not given this information.
You may have been mis-sold a bundled account if you believe the features were not described adequately or the advantages were not relevant to your situation.
Make a formal complaint to your financial institution first. You then have the right to pursue your Financial Ombudsman Service complaint if, after filing a formal complaint, you still think their final decision is wrong or if you do not hear from them within eight weeks.
