Some premium bank accounts provide insurance policies or rewards such as cashback in exchange for a monthly charge. Although they can be costly, if you use the extras included they can save you money overall.
All UK banks provide basic free accounts which can be opened but they usually also offer paid-for accounts. These traditionally have been known as package accounts as they will offer something extra, from travel insurance to protection for your mobile phone.
In this guide, we look at these premium bank accounts in a little more detail including how they work, what's usually included, and some of out top picks.
| Provider | Score | Details |
|---|---|---|
| 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 | Cons |
|---|---|
| ✔️ Cashback, insurance, and extras — the majority of premium current accounts include extras like travel insurance and breakdown insurance. | ❌️ Can be expensive — premium accounts usually have a monthly fee which can be costly |
| ✔️ Shop discounts in specific stores — some cards allow users to access discounts at certain retailers | ❌️ Not needed — if an account comes with extra benefits, it's only worth it if you will actually use these |
Top premium bank accounts — Reviews
Here are some of our top choices when it comes to paid-for accounts. It's always worth checking if an account is on the Financial Conduct Authority's (FCA) list and that it has protection through the Financial Services Compensation Scheme (FSCS).This provides protection for up to £85,000 held within one banking group, if a bank were to go bust.
1. Revolut Premium — Digital-only premium account
The Revolut bank 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 the 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 cashback on hotel reservations, this account is ideal for frequent travellers (travel insurance is offered by Revolut Travel Ltd, (Ref: 780586)).
2. Halifax — Top-rated premium bank accounts
The Ultimate Reward Current Account from Halifax
The Ultimate Reward account from Halifax bank is one of the best premium current accounts out there.
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 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.
This account offers new clients a 25% cashback bonus on groceries and fuel 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. It also has some market-leading savings accounts which you can only access if you are a customer with a linked bank account.
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 bank accounts — provide the same service as the free current accounts on the market plus additional features like insurance and mobile phone protection.
However, a premium bank account is only worth it if you make use of all the features. Some examples of these incentives include discounts on repairs, insurance for trips, and even cashback for making purchases or setting up direct debits.
Monthly premium current account fees range from £5 to £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 the extra features. There is no use in an account with free breakdown cover, for example, if you don't drive.
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.
With a basic account you will usually have a debit card, online banking, and possibly an app to use. You can also set up direct debits and standing orders for regular payments.
In contrast, premium current accounts provide a range of additional benefits on top of the standard banking service. If you will use these benefits, and you can't find them cheaper elsewhere, a premium account could be a money-saving option.
Leading Premium Bank Accounts: The Verdict
Although premium bank accounts may appeal to some, they are not necessary for everyone. If you will make use of the extras, they can be a valuable financial tool, but you could also just arrange these separately and stick with a free account.
If you think a premium account is right for you, always compare accounts and shop around. There are lots to choose from and several have enticing offers for new customers, such as one-off sums of cash.
However, these perks are not worth opening an account for, it's far more important to be happy with how the account works including things like fees and interest.
