What is a packaged bank account?
Find out what a packaged bank account is and whether it’s right for you.
What does ‘packaged bank account’ mean?
Bank accounts with travel insurance
Do I have to pay for a packaged bank account?
Who can apply for a packaged bank account?
Will applying for a packaged bank account affect my credit score?
Things to consider when choosing a packaged bank account
What does ‘packaged bank account’ mean?
A packaged bank account is a type of current account where several different goods or services are ‘packaged’ together.
How is it different to a standard current account?
Packaged bank accounts offer all the functionality of a standard current account, plus other goods or services for a monthly fee.
What benefits come with a packaged account?
Packaged bank accounts often include benefits like car breakdown cover, travel insurance, home insurance, phone insurance and cashback on purchases.
Is a packaged bank account worth it?
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.
How do I know if I already have a packaged bank account?
Your account is likely a packaged bank account if:
- It includes extras such as insurance or cashback and
- It has a monthly fee.
Bank accounts with travel insurance
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.
Do I have to pay for a packaged bank account?
Most packaged bank accounts have a monthly fee. This will vary between different accounts, so check the terms and conditions to find out more.
Who can apply for a packaged bank account?
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 have a poor credit rating
- You cannot pay the minimum amount required into the account
- You do not meet the age requirement
How do I know if I’m eligible?
You should carefully check the eligibility criteria the bank provides in relation to their packaged bank account.
Will applying for a packaged bank account affect my credit score?
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.
Things to consider when choosing a packaged bank account
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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