Bank accounts with benefits Compare packaged accounts, �600 insurance for �120?

TOOL | Top Packaged Bank Account Analyser

A packaged bank account is a great way to get mobile phone, travel, breakdown and other insurance cheaply IF YOU�LL USE IT. If not, it can be a massive waste of money.

Joint Account?

Yes No

Mobile Insurance?

None 1 mobile 2 (incl family) 3 (incl family) 4 or more (incl family)

Breakdown Cover?

None UK covering me UK covering car UK any Europe

Are you a high earner?

Travel Insurance? (Choose cover type first)

What cover do you want? None Europe World

Who is it for? Single Couple Family

Oldest policy holder's age? Less than 65 65-69 70-74 75-79

Winter Sports?

We estimate buying these insurance policies separately would cost

£0

per year. Find out how ▾

This is based on the best value policies - not necessarily the cheapest as fee-paying account policies tend to be higher - giving a good standard of cover. They're a guide to what you could save depending on what you need. Always check policy limits.

Mobile Insurance: £0 Cheapest mobile insurance guide

Breakdown Cover: £0 Cheapest breakdown cover guide

Travel Insurance: £0 Cheapest travel insurance guide

Total: £0

Top packaged accounts based on your selection...

ALWAYS check the policies cover your personal circumstances.

There were no Results. Please amend your search.

Joint Accounts: who can have one?

A joint account is held by two or more people. All account holders have equal control, and in turn are jointly responsible for debts on the account. You'll be required to sign a mandate to highlight how the account operates - for example, whether all parties must sign for withdrawals.

With packaged accounts, all account holders will be given cover under the included insurance policies, for the same single fee.

Mobile insurance: who can get it and why would you need it?

Mobile insurance will usually cover theft, loss, accidental damage and unauthorised calls if your phone is stolen or lost - although please check specific policy details. It's good for those with expensive phones, who have a habit of losing/damaging them.

All the policies here will cover an iPhone or other smartphones (at the very least, £750 per phone). Where it states more than one phone is covered, the phones must be registered to the same address, and held by the account holder(s) or their family. Family can include children, partners, nieces, nephews, aunty, uncle.

Breakdown: what does it include? What's the difference between personal and vehicle cover?

The aim of breakdown cover is to get you mobile, which may involve temporary or full repair at the roadside. Some include breaking down at home; others will only cover if you're approx ¼ mile away.

UK covering me
The policy will cover you, regardless of what car you're travelling, whether it's owned by you or whether you're the driver or the passenger.

UK covering my car
Cover applies to a registered vehicle. Who's driving at the time of breakdown is irrelevant.

Europe
Applies to driving in Europe - check specific areas in the policy documents if you're unsure of cover in a particular country - you�ll be given the same assistance ie with the aim of getting you mobile, possibly with the addition of accommodation.

High earning:

Some providers give certain fee-paying accounts free to eligible customers, generally those fulfilling some combination of the following (varies per bank):

• Earning at least £100k
• Hold high savings with the same bank.
• Some also waiver fees for holding a mortgage with them (it's likely you'll need savings or a high income in addition).

If this applies to you, some options may be worth getting - even if they don't include all the policies you want (mobile and breakdown usually), it'll work out cheaper to insure separately for those on top.

Travel insurance: what does it cover?

The policies included here provide annual cover, good for those who travel more than once a year for around 30 days, against cancellation, illness, delay, baggage and loss of personal items.

Always check that the cover limits are suitable for you, plus read the policy carefully before assuming you're covered for anything out of the ordinary. Extra costs apply if you have any ongoing medical issues.

If the policy includes winter sports cover, you'll be protected if you're injured skiing or snowboarding on-piste only - if you go off piste, it's likely you won't be covered - generally for no more than 21 days total per year.

This is the first incarnation of this guide. Please tell us whether it works for you, your experiences with any of these accounts, and if there are any we've missed.

Are premium accounts worth it for me?

Banks make money from these accounts - they want you to have them. But this doesn't mean that they're a waste of money for all - quite the opposite.

For those who are savvy enough to check policies and work out costs, they can SAVE you money. There's a simple way to work it out:

If you don't need the added extras, or can insure cheaper elsewhere, don't bother with a packaged account.

Start by multiplying the monthly cost by 12 - for example, �25/month is �300/year - then see if you can buy the 'freebies' for less. If you can, either ditch and switch to a fee-free account or shift for better value.

Packaged accounts DOs & DON'Ts

Watch out for good junk mail

This is one of the few areas where junk mail can be positive. Very occasionally direct mail offers, targeted website offers or sign-up stalls in shopping centres offer better deals. Keep your eyes open, but ensure you ask about any fees.

Best buys: Packaged bank accounts

Many top bank accounts you can get free, but some monthly-fee accounts can be worth it IF you use the products bundled with them - usually breakdown cover, travel insurance and mobile phone insurance. More importantly, if they save you money, they're a definite winner.

Our top picks

FREE travel insurance and no fee*Nationwide Flexaccount*. Great if you just need travel cover

• Monthly fee
• No fee
• Get it*

• In-credit interest: None
• Min monthly income: �750 (explanation)
• Arranged overdraft cost: 18.9%.
• Unarranged overdraft cost: �15 paid / unpaid item fees plus �20/mth (max �95)

A great way to get completely free European travel insurance is Nationwide's* FlexAccount. It's a decent policy too, and provides cover up to age 75 (max age 73 at account opening), which alone usually costs a fortune. Plus if you need to upgrade to worldwide, it's just �20 - the cheapest standalone policy costs from �27.

You must switch and pay in �750+/mth to qualify. If you have a pre-existing condition, tell Nationwide as you may need a medical before getting cover and could be charged.

➕ Going to get this? Click for full details first

Upgrades are very reasonably priced. At �20/year for worldwide cover, �30 for family and �40 for winter sports, they can be cheaper then some top value policies, even if you need all three - see Cheap Travel Insurance. See the Key Facts PDF and Policy Wording PDF for full policy details.

If you're accepted, you'll also be eligible for the Nationwide Select credit card. It gives 0.5% cashback, 20 months 0% on balance transfers, cheap overseas spending and 0% on purchases for 12 months. See Cashback Cards for more details.

Customer service feedback

In our February 2013 poll of the nine big banks, 67% voted Nationwide great, 28% OK, while 5% voted it poor.

�600 of high-end travel, mobile & breakdown for �120*Nationwide FlexPlus

• Monthly fee
• �10
• �120
  year
• Get it*

• In-credit interest: 3% AER up to �2,500
• Min monthly income: None
• Arranged overdraft cost: �100 fee-free, 50p per day above that
• Unarranged overdraft cost: Up to �10 fee-free, then �5 per day (max �50/mth)

For the cheapest worldwide family travel insurance up to age 74 (which usually costs double the account charges alone), smartphone insurance for all the family at the same address and UK & Europe breakdown cover, Nationwide's* FlexPlus account is a cracking deal for �120/year - IF you'll use the features.

Plus it comes with extended warranty cover for an additional 12 months on all new household electrical items between �50-�2,000. You'll also get 3% AER in-credit interest on balances up to �2,500, beating top savings accounts.

➕ Going to get this? Click for full details first

• Worldwide family travel insurance: Allows multiple trips worldwide and includes winter sports, business, golf and wedding cover. The cheapest you could normally get this for is �50, but for a top value policy like this you could pay over �130 per year (read the full Travel Insurance guide).

  Cover is up to age 74, but those over 75 can be covered for a �50 premium. It'll cover you, children under 19 (or 22 if in full-time education) providing they live at the same address, and your partner, even if it's not a joint account.

  The excess (the amount you pay towards the claim) is a maximum of �50. If you have a pre-existing condition, tell Nationwide as you may need a medical before getting cover and could be charged.

• Mobile phone insurance: Covers repair or replacement after theft, loss or damage, insuring each handset up the to value of �1,000, so it'll cover all smartphones. The excess is a maximum of �100 for an iPhone.
  
  Unusually, it covers the phones of all family members, provided they live with you - so maxed out, this gives serious value. See Mobile Insurance for more details.

• Britannia breakdown cover: For the UK and Europe including home assistance. Cover is for the person, and people travelling in your vehicle. On a joint account both account holders would be covered.

For more policy details, see the travel insurance, mobile insurance, and UK & Europe breakdown cover documents.

The debit card with the account has no fee or load for cash withdrawals abroad, making it a leading debit card for overseas use, but still has a 2% charge when using it for overseas purchases, so don't use it for this.

For overseas purchases, if you have the FlexPlus account, you're also eligible for the Nationwide Select credit card. It gives 0% load on overseas purchases, as well as 0.5% cashback, 20 months 0% on balance transfers and 0% on purchases for 12 months. See Cashback Cards for more details.

Customer service feedback

In our February 2013 poll of the nine big banks, Nationwide was 3rd, with 67% voting it great, 28% OK, and just 5% voting it poor.

Top alternative: 3% savings & bills cashback*Santander �24/year (�2/mth).

• Monthly fee
• �2
• �24
  year
• Get it*

• In-credit interest: 1% AER for over �1k, 2% over �2k, 3% for �3k-�20k
• Min monthly income: �500 ( explanation)
• Cashback: 1% on water, council tax & Santander mortgage, 2% on gas & elec, 3% on phone, internet & TV
• Arranged overdraft cost: �1/day, capped at 20 days/mth. 0% for 4mths after switching
• Unarranged overdraft cost: �5/day

The Santander* 123 Current Account operates an entirely different way. There's no insurance, but it pays up to a massive 3% cashback on household bills plus 3% AER in-credit interest on �3,000-�20k - even lower bill-payers could be quids in.

We crunched the numbers on how this stacks up and after the fee, we worked out low users would be up by �47 a year, average users �115 and high bill payers could be �226 in profit.

➕ Going to get this? Click for full details first

• Cashback rates: 1% cashback on water, council tax bills and repayments up to �1,000/mth on Santander mortgages, 2% on gas and electricity, 3% on mobile, home phone, broadband and TV packages.
• In-credit interest: 1% on balances over �1,000, 2% over �2,000 and 3% on the whole amount if you save �3,000 - �20,000. Anything over �20,000 gets no interest. If you get 3%, this beats the current Top Savings Accounts.
• Overdraft costs: Overdraft is 0% APR for 4 months if using Santander's switching service. Then it's �1/day (max 20 days/month) for arranged overdrafts. �5/day for unarranged overdrafts. Max �95 fees/charges in any calendar month.

To get these perks, use its Account Transfer Service to move at least two direct debits and standing orders, and have a monthly income of at least �500. If you can't pay the monthly deposit, you won't earn the cashback in that month. Existing current account holders can switch to this if they wish. Applicants must pass a credit check.

How good is it?

A 'typical' billpayer with a Santander mortgage could make �115 a year profit, before interest. Without the mortgage this drops to �50 (see Santander 123 Analysis for more stats). But bigger spenders can push it further - @KellyAJackson told us via Twitter.:

"I have a 123 account and I'm getting about �18/month back after my fee - it's fantastic. �6 just for paying the mortgage"

Customer service feedback

In our August 2012 poll, 64% voted Santander 123 great, 28% OK, 8% poor.

Great mortgage deals:

Some accounts will offer discounts on mortgage fees or rates with their fee-charging current accounts. Again, ensure you weigh up the saving and make sure you take full advantage of all that's offered. HSBC gives a discount on the fee or rate, saving you around �200 if you take out one of its packaged accounts. Co-op, listed above, also has mortgage offers.

However, it's only worth it if you're already planning on taking out a mortgage with them. If their mortgages work for you, then get the account too. If they don't, don't bother. See our best buys below.

Big discounts for HSBC mortgagesHSBC: Free if eligible otherwise �300/year (�25/month)

• Monthly fee
• No fee
• Get it

• In-credit interest: none
• Min monthly income: �100k salary ( explanation)
• Arranged overdraft cost: 0% for one year (up to �5,000) then 19.9%
• Unarranged overdraft cost: �25 paid or unpaid fee of �0, �10 or �25

Premier account holders with HSBC can save �300 on mortgage fees wiping the �300 account fee in the first year.

However, it's fee-free if you hold over �50,000 of investments, have a salary of �100k or a mortgage of at least �300k. Plus you'll get worldwide family travel insurance.

If you're not eligible for the fee-free Premier, you may want to consider the Advance account, but check the savings between the two first. The deals aren't as good, but the fee is �12.95/month and you'll still get �200 off fees. It also comes with UK breakdown cover.

➕ Going to get this? Click for full details first

• Worldwide family travel insurance: Up to age 69, including winter sports and business cover for a maximum of 31 days per trip. Children under 18, or 23 if still in full-time education and living at home outside term time, are covered if they're travelling with the account holder or staying with relatives abroad.
  
  

  Pre-existing conditions may not be covered, so check before you travel. See the full policy document.

• HSBC Advance only - UK breakdown cover with Mondial Assistance: Includes home assistance. It's a personal policy so will cover all account holders if opened in joint names. See the full policy document.

Customer service feedback

In our February 2013 poll, 43% voted HSBC great, 45% OK, 12% poor.

Watch out for good junk mail

This is one of the few areas where junk mail can be positive. Very occasionally direct mail offers, targeted website offers or sign-up stalls in shopping centres offer better deals so keep your eyes open, but ensure you ask about any fees.

Do I need to activate policies?

Many people get caught out after they've signed up to one of these accounts. They wrongly assume that they'll automatically be covered, when in fact some policies require you to register your details to initiate cover. This particularly applies to phone insurance.

Failing to do this is another way packaged accounts can become a monthly black hole for your cash. Check you've done all you need to before embarking on that holiday or long car journey.

Check below whether your bank requires you to register or not.

Have you been mis-sold?

In July 2012, the FSA (now the FCA) announced new rules to tighten regulate the selling of packaged accounts. In light of the PPI scandal, it's no wonder banks are a little on edge.

Many were sold these accounts even though they were unable to claim on the insurance, something that isn't often discovered until a claim's needed. Travel insurance particularly becomes useless for those over a certain age, usually about 65.

The new rules, which came into force on 31 March 2013, help make the selling of these accounts more transparent. There were already regulations on selling insurance policies, but not when bundled together as part of a bank account.

Banks and building societies must now:

• Check whether the customer is eligible to claim under each policy and share that information with them.
• If the sales adviser is recommending a packaged account, they must establish whether each policy is suitable for the customer and alert them if some are not.
• Provide customers with an annual eligibility statement setting out the requirements for each insurance policy, prompting them to check whether their circumstances have changed and whether the policies continue to meet their needs.

A further consultation will decide whether banks will have to tell account holders when they have reached the age limit for their travel insurance policy, or provide a warning if they will do soon. See the FSA publishes new rules on packaged accounts MSE News story.

Can I reclaim for mis-sold accounts?

Typically, claims are made by people not realising they were paying for their account, those who weren't told of a free alternative or account holders who discover they weren't eligible for the extras. If you believe any of these apply to you, you could have been mis-sold.

See the Packaged account mis-selling victims can claim compensation MSE News story and the Reclaiming Packaged Accounts guide for more info and step-by-step help to guide you through the process.

But for a little inspiration, although success cases are still few and far between, one forumite proves it's not impossible:

Borderlander Wrote to my bank 4 weeks ago as a result of reading your item on mis-sold packaged bank accounts - exactly 4 weeks later and Co-op Bank have just credited my account with �863, the whole amount I had paid since opening the account in 2003. Well done Co-op Bank, well done Martin's Money Tips!

The Financial Ombudsman Service receives about 100 complaints each month about packaged accounts. It's hard to say exactly how many, though, as they are often logged under insurance complaints.

How to reclaim

See the Reclaim Packaged Accounts guide for full help, but here's a quick summary of how to go about it:

1. Have you ever claimed on insurance?
   Check the policies that you're paying for. If you've ever made a claim under them, then chances are you won't be able to reclaim. If you haven't, didn't know you were paying at all or have discovered you can't claim when you were told you could, you may have been mis-sold.

2. Never claimed? Contact your bank
   If you think this is you, contact your bank. Write a letter stating why you've been mis-sold, the account you're paying for and how long you've had it - our step-by-step guide includes template letters. If you were paying unknowingly, you'll need to dig out past statements.

3. Complain to the Financial Ombudsman Service
   If your bank hasn't given or a satisfactory response, or failed to respond within eight weeks, you've a right to take your complaint to the FOS.