Best bank accounts UK: Top 12 packaged bank accounts with best value for money

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Cost of living pressures are forcing many to reassess non-essential spending and if you’re paying for a packaged bank account, you’ll want to be sure your perks are good value for money. Recent research by consumer choice company Which? compared 12 packaged accounts offered by high street banks to find out what one offers the best rates for its respective benefits.

A packaged account is a current account with an added ‘package’ of extra benefits – from travel insurance and breakdown cover to preferential rates on overdrafts and loans.

These accounts will come with a monthly fee and in this fee, all insurance policies and account perks are bundled into one.

In a recent Which? survey, 59 percent of respondents said they took out their packaged accounts because they’re cheaper, while 25 percent said they’re less hassle than buying individual policies.

Having one provider for multiple policies also means you don’t have to remember renewal dates, removing the risk of being temporarily uninsured.

Overall, if you’re already investing in multiple insurance policies, signing up for a packaged account over a free current account could end up saving you money, provided the benefits included are most suitable for you.

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Jenny Ross, Which? money editor told “With costs rising across the board, many people may be wondering if now is the time to ditch their packaged bank account, in favour of a free alternative.

“However, Which?’s analysis shows that a packaged account will often prove cheaper than buying individual policies for travel, breakdown and gadget cover.

“Remember you’ll only save money if you make use of the benefits on offer, so it’s worth regularly reviewing what you’re paying for to make sure you’re still getting value for money.”

So if you’re reassessing your outgoings or looking to invest in one, you’ll want to know what the different accounts are good for, to make the right decision on whether to keep yours, swap it, or start one up.

Here are the top 12 packaged accounts, according to Which?

1. Nationwide FlexiPlus – 82 percent overall account score

Ranking first out of the 12 is Nationwide’s FlexiPlus packaged account scoring 82 percent by Which? Analysts.

The account’s overall score is weighted by the quality of travel insurance (30 percent), car breakdown cover (30 percent), mobile phone insurance (10 percent), as well as the fees and any other account perks (30 percent), such as interest on credit balances.

Holding the lowest fee of all 12 accounts analysed at £13 a month, this ‘all-rounder’ account offers comprehensive cover in all three core insurance elements; travel, breakdown cover, and mobile phone.

2. The Cooperative Bank Everyday Extra- 79 percent overall account score

Coming in at a close second out of the 12 is The Cooperative Bank’s Everyday Extra, according to Which?

Costing a modest £1.50 more than Nationwide FlexiPlus, The Cooperative Bank’s Everyday Extra account costs £14.50 a month with slightly fewer pros.

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It surpasses Nationwide’s travel coverage, as there’s no excess to pay on claims, however, it limits breakdown cover to five years on The Co-operative Bank’s RAC policy and only allows two claims a year for one mobile phone per account holder up to a value of £1,500.

Nationwide, on the other hand, imposes no limit on the number of call-outs you can make on its AA cover and allows up to four claims a year for phones owned by you or your family up to a value of £2,000 per claim.

3. HSBC Select and Cover – 71 percent overall account score

HSBC Select and Cover packaged account places third with an overall account score of 71 percent, according to Which?

Unlike a traditional packaged account, this account allows you to buy “add-on” policies to your existing account for a monthly fee depending on how many you add.

You can pick and mix three insurance policies for £19.50 a month, or up to seven for £45.50 a month and when comparing its policy for travel, mobile, and breakdowns, coverage placed it third in the table for value for money.

4. Barclays Travel Pack and Tech Lite – 67 percent overall account score

Barclays Travel Pack and Tech Lite package completed Which?’s top four out of the 12 packaged accounts analysed.

Like HSBC, these features work as “add-ons” to an existing Barclays account and you can mix and match from a range of options.

You can choose from the Travel Pack at £12.50 a month or the Travel Plus Pack for £18 a month to include both travel insurance and breakdown cover.
A Tech Pack is also on offer for £14.50 a month, or you can nab the Tech Pack Lite for £9 a month for mobile phone and gadget cover.

After comparing various combinations of packs on offer with the rest of the table, Which? Considered mixing the Travel with Tech Lite pack as the best value for money bundle.

The remaining eight packaged accounts in descending order from higher scored to lower include:

5.    Virgin Money Club M – 67 percent overall account score
6.    Halifax Ultimate Reward – 66 percent overall account score
7.    Barclays Travel Pack and Tech – 65 percent overall account score
8.    Barclays Travel Plus Pack and Tech – 65 percent overall account score
9.    Monzo Premium (Advance breakdown) – 63 percent overall account score
10.  Bank of Scotland/Lloyds Platinum – 62 percent overall account score
11.  Monzo Premium (Standard breakdown) – 61 percent overall account score
12.  NatWest/RBS Reward Platinum – 59 percent overall account score

To read the full analysis, click here.

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