Packaged current accounts may not be the best

According to some experts packaged current accounts that are offered by many banks may not prove particularly suitable or cost effective for some customers, and customers are being urged to check on the benefits offered with these accounts to ensure that they are suitable.

Packaged current accounts are upgraded current accounts that offer a number of benefits, such as car breakdown cover, travel insurance cover, preferential rates on borrowing, and more.

There is a monthly charge for the account, which usually ranges between £12 and £25 depending on which bank the customer is with.

One industry official recently said: ‘The savings you make will more than likely pay the cost of buying some benefits independently. These benefits can be quite attractive but only if you take full advantage of them, so make sure you register for them and make sure they fully meet your needs. How beneficial is car breakdown cover if it only covers you on a limited distance from your home? Alternatively, how often do you lose your mobile phone?’

Customers are advised to check the benefits of this accounts carefully before making any decision, as otherwise they will be paying a monthly charge for benefits that they are unlikely to use.