BANK ACCOUNTS

Banks double packaged account offers since 2006

The number of packaged bank accounts available by UK banks has increased dramatically since 2006.

Only five years ago, there were only 33 packaged current accounts - accounts which add extra values - on the market. That figure now stands at 69, which reveals that this financial service has more than doubled in the last few years.

As the independent financial research company Defaqto shows, since November 2009 there have been more packaged accounts available than free in-credit accounts.

Another trend that has changed over the last few years is the average monthly fee for a packaged account. While in 2006 they cost £11.59 on average, prices now stand at £15.44.

Most popular incentives

Defaqto also analysed what the most popular incentives offered in packaged accounts are. 92.8% of them offer commission free foreign currency & travellers’ cheques, 79.7% offer travel insurance and 78.2% give their clients preferential rates or deal on savings accounts.

Other services that banks offer their clients alongside their bank accounts includes mobile phone insurance (75.3%), interest free overdraft (66.7%), motor breakdown cover (65.2%) and card protection (50.7%).

At the bottom of the list, Defaqto found that 3 out of the 69 accounts offer accidental death cover, spare key storage and switching cashback incentive.

"If someone is considering opening a packaged current account they should look at each of the incentives on offer and decide whether they need the benefit and, if so, whether what it provides is suitable for their circumstances - and ultimately represents good value against the monthly fee,” said David Black, Defaqto's Insight Analyst for Banking.

Indeed, given the wide range of available packaged accounts on offer, it is essential to compare bank accounts. Incentives vary greatly between products and that is why customers should focus on the benefits as well as their own personal circumstances.

Tags: BANK ACCOUNTS, bank accounts incentives, financial incentives, packaged current accounts