Packaged bank accounts and how they work

A packaged bank account is a type of current account that provides a variety of added perks not typically found with standard accounts. 

On this page, we’ll explain what a packaged bank account is, highlight some of the most common features, and present some of the key considerations when choosing whether or not to open a packaged bank account.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

Packaged bank accounts, sometimes called premium current accounts, come with extra features or benefits in exchange for a monthly fee. Perks typically include travel insurance, mobile phone insurance or gadget cover, vehicle breakdown cover, or even exclusive access to better overdraft terms or higher interest rates (AER).

While regular current accounts mainly help you manage money, packaged bank accounts go further by offering extra value through these bundled perks. Think of it like a bank account with additional features.

Monthly fees can vary between providers, ranging from around £10 to £25 per month (at the time of writing), depending on the services included.

Determining if a packaged bank account is right for you depends largely on the rewards offered and how useful or valuable you’d find them. Those interested might consider whether they’ll use the included perks enough to justify the monthly fee, and whether it will save them money compared to buying those benefits separately.

It’s important to do your own research and ensure you fully understand any terms and conditions of the packaged bank account in question, whether it’s a personal account or a business account.

As mentioned above, a packaged current account might be worth considering if the account holder will get use out of the included perks.

Individuals who regularly travel abroad may find they frequently use the added benefits of a bank account with travel insurance. However, the best option will depend on your specific needs and travel habits. For instance, some policies may exclude certain countries or have age limits, so it’s important to review the details carefully to ensure you’ll definitely be covered by the plan. 

The benefits of a packaged bank account can vary widely, depending on the fee, the banking provider, and the terms of the package. But generally, the main benefit of a packaged bank account is that it combines everyday banking with added protections and services, saving you from buying these separately.

For people who frequently travel, drive, or own expensive gadgets, a current account with benefits may add value: 

• Travel insurance - This may be useful if you regularly travel abroad, especially outside your home region, and it suits the types of trips you take.
• Gadget cover - This may be useful if you use a smartphone or other gadgets like a laptop or tablet, that you’d like covered for theft or damage.
• Breakdown cover - This may be useful if you own or frequently drive a vehicle, provided the coverage is relevant and comprehensive.

Additionally, some packaged accounts offer enhanced features such as higher interest rates on account balances, fee-free overdrafts (within an agreed limit), or cashback schemes, creating extra incentives for customers who choose this type of current account.  

Raisin UK doesn’t offer packaged bank accounts, but if your goal is to make the most of your money, a savings account with a competitive rate could be a good alternative for growing a lump sum or even saving in the short term.

All partner banks featured on the Raisin UK marketplace are covered by the Financial Services Compensation Scheme (FSCS). Eligible deposits with UK-regulated banks are protected up to £120,000 per person, per bank.