Find out what a packaged bank account is and whether it’s right for you.
A packaged bank account is a type of current account where several different goods or services are ‘packaged’ together.
Packaged bank accounts offer all the functionality of a standard current account, plus other goods or services for a monthly fee.
Packaged bank accounts often include benefits like car breakdown cover, travel insurance, home insurance, phone insurance and cashback on purchases.
Packaged bank accounts can save you time and money if you plan to use the benefits, they meet your needs and you’re eligible for them.
However, depending on your individual circumstances, it may be better value for money to purchase the insurance benefits individually, so like with all bank accounts, it’s a good idea to do some research into which account would work best for you.
Your account is likely a packaged bank account if:
Many packaged bank accounts offer travel insurance. Different banks will offer different types of cover, so where, what and who’s covered will vary.
Some providers will also ask you to declare any pre-existing medical conditions in order to be fully covered. Check the policy closely before applying to make sure the travel insurance is right for you.
Most packaged bank accounts have a monthly fee. This will vary between different accounts, so check the terms and conditions to find out more.
Each packaged bank account will have its own eligibility criteria and because they carry a monthly fee, they’ll require a credit check. You may not be able to open an account if:
You should carefully check the eligibility criteria the bank provides in relation to their packaged bank account.
When you apply to open most bank accounts, the bank you’re applying to will run a credit check and this may affect your credit score. Making several applications in a short space of time is likely to negatively affect your credit score.
Consider whether you’ll actually use the benefits included with a packaged bank account and whether there would be any additional fees if you do not meet certain conditions (for example, paying a certain amount into your account each month).
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