Packaged bank accounts are current accounts with added features and perks – these could be mobile or car insurance, free overdrafts or better interest rates.
They normally cost between £5 and £25 per month, but in some cases the fee is charged annually.
A study by the Financial Services Regulator estimated that there were 10 million packaged bank accounts open in the UK – meaning roughly one in five adults has one.
Packaged bank accounts are sold either as a new account or bolted on to an existing customer’s current account as an upgrade. Packaged bank accounts can be sold easily on few ways agreed before. You should adjust yourself to what were established between you and bank.
Packaged bank accounts can be good value for some, even if all the features aren’t taken advantage of, but some aren’t right for everyone, which has caused the latest banking controversy. The latest banking controversy gave a lot of financial problems.
Which? named packaged bank accounts as one of the most useless financial products currently available. They have been dubbed the ‘new PPI’ because many unwitting customers opening bank accounts were sold these accounts without even knowing and in some cases were even ineligible to use some of the perks.