Best Premium Bank Accounts

Find the best premium bank accounts in this review by Compare Banks.

Updated: May 18, 2024
Matt Crabtree

Written By

Matt Crabtree

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Some premium bank accounts provide insurance or cash back in exchange for a monthly charge. Although costly, proper use could save you hundreds of pounds.

In this piece, we refer to premium bank accounts, which charge a monthly fee but provide perks like insurance and rebates on banking services, among others.

It's not always easy to tell whether a premium account from a large bank is a good value, but most of them do.

ProviderScoreDetails
1. Revolut★★★★★Learn more
2. Halifax★★★★★Learn more
3. Co-operative Bank★★★★★Learn more
4. Nationwide★★★★★Learn more
5. RBS★★★★Learn more
6. Virgin Money★★★★Learn more

At a Glance, Pros and Cons

This section summarises the pros and cons of top premium bank accounts in the UK.

Pros

✔️  Cashback, insurance, and extras — The majority of premium checking accounts also include extras like trip insurance and car repair assistance. Saving you a surprising amount of money. 

✔️ Further discounts in specific stores — It's difficult to predict how much money each customer will spend at each establishment, so sometimes providers do not even include, as a feature, discounts that many accounts provide for certain stores, restaurants, and subscriptions. If the perks include money-saving deals at stores where you already often shop, they might be very valuable to you.

Cons

❌️ Depends on your circumstances — However, discounts might not apply to your specific store. Consider car insurance too; breakdown coverage is useless if you don't own a vehicle.

Top premium bank accounts — Reviews

Let's discuss the best-rated premium bank accounts. As always, double-check that they’re covered by the FSCS.

1. Revolut Premium — Digital-only premium account

Revolut Premium Account

The Revolut Premium account, for which you pay a monthly charge, has all the features of the Revolut Standard account and a few more.

To begin, with your Revolut card, you may make up to £400 (then a 2% fee applies, a minimum fee of £1 per withdrawal) in monthly fee-free withdrawals and spend everywhere Mastercard is accepted, both in the UK and internationally. 

Additionally, account users may make one international transfer every month at no cost and can swap and transfer an unlimited amount of money at favourable exchange rates.

The account will reimburse you up to £1,000 for event tickets and offers purchase protection on purchases up to £2,500 each year. 

You can earn up to 2.5% annual interest paid daily with Savings Vaults (save with spare change, round-ups or recurring transfers).

With Premium plan, you get 5 commission-free trades each month (other fees may apply, capital at risk).

In addition to providing international emergency medical and dental protection, delayed flight and luggage insurance, and cash back on hotel reservations, this account is ideal for frequent travellers (travel insurance is offered by Revolut Travel Ltd, (Ref: 780586)).

Also, integrate with other accounting software.

2. Halifax — Top-rated premium bank accounts

The Ultimate Reward Current Account from Halifax

The Ultimate Reward account from Halifax is clearly the best premium current account out there. You can acquire a six-month scheduled overdraft with no interest if you switch through the Current Account Switch Service.

With a Halifax account, you can protect your phone, house, and family while also getting international travel insurance and UK breakdown protection for only £17 per month. After subtracting the annual fee and the costs associated with certain scheduled overdraft use and international card usage, the value of its core benefits rises to over £370 per year.  

If you fulfil the account's minimum deposit and monthly spending criteria, you may get a cashback incentive of up to £5 every month.

3. Co-operative Bank — Popular premium bank account in the UK

Everyday Extra from the Cooperative Bank

Co-op Bank has survived the pandemic and made a name for itself as one of the UK's most ethical financial institutions by taking more measures than its rivals to advocate for green practices and socially responsible banking.

It has severed ties with the Co-operative Group but retains the Co-op brand. It is really owned by a collection of US hedge firms, but they've signed an annual agreement promising to uphold the Co-op Group's standards.

Co-operative Bank Everyday Extra, its premium account, costs £15 per month and includes international travel insurance for a family of four, mobile phone insurance, and UK and European breakdown protection. You can earn up to £2.20 in monthly rebates by participating in their daily rewards program.

4.  Nationwide — Trusted UK premium bank accounts

Nationwide FlexPlus

Nationwide (review), which its advertisements often remind us isn't a bank at all, has excellent customer service and a widespread branch network.

One further thing going for Nationwide is the fact that it is the biggest building society in the United Kingdom.

A customer-owned cooperative with a history of putting account holders first and a competitively priced checking/savings account combination.

Nationwide's FlexPlus account provides international travel insurance for the account user and their immediate family, UK and European breakdown coverage, and mobile phone insurance for the whole household for only £13 per month. Meanwhile, using a debit card abroad won't cost you a dime. 

5. RBS — Well-rated premium bank accounts

RBS Platinum Award Program

In recent years, the Royal Bank of Scotland brand has been almost indistinguishable from the Natwest brand, with virtually similar offerings from both.

Cinema discounts and a taste card that saves you money at restaurants and on takeout orders are just a few of the perks included with both accounts, in addition to international travel insurance for the account user and their family, mobile phone insurance and breakdown protection in the United Kingdom.

A hefty £20 a month is required, but the benefits more than make up for the cost. The value of annual rewards is £199.89 after fees.

6. Virgin Money — Good premium bank account for frequent flyers

Club M for Virgin Money

Virgin Money (review) is now one of the major challenger banks in the UK after merging with Clydesdale and Yorkshire Banks in 2019. It has been working hard over the last 18 months to develop a new line of goods and challenge the big five.

In 2021, it introduced the Club M account, which costs £12.50 per month and includes premium features such as international travel insurance for the account user and their family, device protection for the account holder, and UK breakdown cover.

It's one of a kind since it comes with a concierge service that can assist you book tickets and more while you're travelling as well as a doctor on call around the clock.

Using a debit card overseas won't cost you a dime either. It would have received a higher score if not for its excessively high banker's draught cost.

However, if you often travel internationally, this account is an excellent option to consider while comparing other banking services.

This account offers new clients a 25% cashback bonus on groceries and petrol purchases made during the first 60 days of opening an account, up to a maximum of £160.

As an example, if you utilise an arranged overdraft of £1,200, you will be charged interest at the variable rate of 19.9% EAR. The monthly charge for this account is £12.5. The Virgin Money app also facilitates budgeting, savings, and expense tracking.

Top premium bank accounts — Buying Guide

Let’s explore premium business accounts further as a topic. 

What is a premium bank account? 

In exchange for a monthly subscription, premium current bank accounts — also known as packaged or occasionally gold bank accounts — provide the same service as the free current accounts on the market plus additional features like insurance and mobile phone protection.

The premium bank account is likely worth it if you make use of all the features. Some examples of these incentives include discounts on repairs, insurance for trips, and even cash back for making purchases or setting up direct debits. You can evaluate the value of premium accounts against their regular costs.

Monthly premium current account fees range from as little as £5 to as much as £25, with the average being approximately £15.

The question of whether or not you should get it is ultimately answered by how much you plan to make use of its features. There is no use in purchasing travel insurance or breakdown protection if they are not leaving the country or their immediate neighbourhood. These benefits may grow more significant and important, though, if the United Kingdom continues to liberalise.

Are premium bank accounts recommended?

Is it worth switching from your free current account to a bundled or premium bank account that charges you a monthly fee? 

Most personal current account bank accounts in the UK are free to use. To what extent you would benefit from the premium features and services offered by a high-end bank account will determine your response. Many people keep the bank account they created with their parents when they were young, or the one they got while they were in college.

An agreed overdraft, a cheque book, and the ability to withdraw and deposit cash and set up Direct Debits are just some of the basic but important banking services provided by these accounts. However, other from that, the benefits are minimal at best.

In contrast, premium current accounts and bundled bank accounts provide additional benefits on top of the standard banking service.

If you're debating whether or not upgrading to a premium bank account is worth the additional money, this guide will explain the essential benefits of a premium current account and help you make an informed decision.

Overall

The account's monthly price covers all of the perks you get. If you make full use of all the features, a premium checking account may be worth the extra cost. However, in the present climate, you may save money by purchasing a mobile phone and breakdown coverage elsewhere than via your bank.

In certain cases, the premium features of a checking account are worth much more than the asking price. That's right, a policy that covers a whole family may cost less than individual coverage for just one person. However, the insurance won't do you much good if you can't use it since your trip is cancelled.

It all boils down to finding the right mix for you. whether you already know how much you spend on things like mobile phone insurance and breakdown coverage, you can use this information to determine whether a premium checking account is worth the extra money each year.

Leading premium bank accounts: The Verdict

Although premium bank accounts may appeal to some, they are not necessary for everyone. If you want to avoid overdraft fees and other surprises, read some of the finer print before establishing a bank account.

If you want answers to your questions and an easy banking experience overall, you should think about the level of customer care a bank provides.

If you satisfy the requirements, a prime bank account might be a convenient place to keep a substantial amount of money. The benefits include access to exclusive promotions, prizes, and increased account limits, although cash in excess of £85,000 may not be completely insured. However, it can be the best option if you like to keep all of your money in a single location.

For more, see our top savings accounts.

FAQs

Why do people need a premium or premier bank account?

What are the risks of a joint account?

Do any free checking accounts come with perks?

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Mentioned Banks

About RBS RBS, or Royal Bank of Scotland, is a retail banking subsidiary of the Royal Bank of Scotland Group. The Group’s other retail subsidiaries are NatWest and Ulster Bank....
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About Bank of Scotland Bank of Scotland is a commercial clearing bank based in Edinburgh. Not to be confused with Royal Bank of Scotland, it was established in 1695 and is one...
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About Clydesdale Bank Clydesdale Bank is a Scottish commercial bank founded in Glasgow in 1838. Independent until 1920 when it was purchased by Midland Bank, it is the smallest...
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About The Co-operative Bank Based in Manchester, United Kingdom, the Co-operative Bank is a large retail and commercial bank. It is the seventh biggest lender in Britain and the majority...
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About Halifax Formerly known as Halifax Building Society, Halifax is a British bank. It is named after the town in West Yorkshire where it was founded in 1853 as a building...
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About Nationwide Nationwide is a British building society and mutual financial institution. Headquartered in Swindon, it has additional offices in Glasgow, Bournemouth, Northampton...
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