Packages account war started by Abbey

High Street banks Abbey, which is Spanish owned, has recently started a packaged account war by launching two packaged current accounts for consumers. These accounts charge a monthly fee, but in exchange offer a range of benefits for the account holder, so some consumers could find that whilst they have to pay a fee they could save money in the long run.

Many banks now offer these packaged current accounts, and the fees can vary based on the account and the bank that you are with. Benefits can also vary, but most include benefits such as free travel insurance cover, breakdown cover, extended purchase protection, preferential borrowing rates, mobile phone cover and more.

An official from Abbey said: ‘The biggest criticism of packaged accounts is people do not want or need the things they get with them. We want to make sure they do by tailoring them to their lifestyle. We will monitor what customers use and make changes where necessary.’

He added: ‘Abbey wants to be a big player in current accounts and take ourselves beyond being a savings and mortgages institution. By breaking in to this area, it completes the package.’ The new accounts are the Family Reward account and the Travel Reward account, which cater for different needs and circumstances.