The best UK packaged bank accounts

Looking for a packaged account? We look at what the top packaged accounts offer and what you should watch out for.

Packaged current accounts have – rightly – been slated by personal finance sites like loveMONEY in the past.

There was the massive mis-selling scandal for a start (more on that later), not to mention the hefty monthly fees.

Then there's the fact that the perks on offer have been scaled back over the last few years.

Yet despite all these negative headlines, packaged current accounts can still prove to be a savvy option.

You just need to make sure you are using as many perks as possible to justify the costs.

So, is a packaged account right for you? Read on, do the sums, and don’t forget the small print.

Packaged accounts explained

Before deciding whether you want one, let's look at exactly how a packaged account works.

Essentially, it's a current account with bolt-ons like insurance and more generous in-credit rates.

They come with a monthly fee, so you need to check whether the perks on offer outweigh this cost as you can get many of the same benefits with fee-free accounts (we’ve noted these below).

It’s also vital you read the small print before you sign up as there are a load of exclusions that can catch you out, such as age limits on insurance. Finally, check that you’re not doubling up with another policy you already have. 

We recommend checking the price of insurance to see if you’d be better off getting a free bank account and buying the insurance separately.

In most cases, we've listed the best free 'equivalent' for each account.

New packaged accounts

If you’re confident banking on your mobile, these relatively new banks may be worth considering.

Monzo Max, Monzo Perks and Monzo Extra

Monzo Max, which costs £17 per month, comes with a host of perks for the hefty price tag.

For example, you’ll get free worldwide travel insurance, which includes medical bill coverage of up to £10 million. Within the UK and Europe, you’ll receive free breakdown cover too.

You'll also get phone insurance cover for theft, loss, accidental damage, and cracked screens for phones worth up to £2,000 and for accessories worth up to £300 (with a £75 excess).

If you’re looking to earn interest on your in-credit balance, you’ll get a rate of 4.1% AER on up to £500,000 in your Monzo Savings Pots. 

You'll also receive fee-free ATM withdrawals up to £600 abroad per month.

Other perks include a free annual Railcard and free weekly hot drink or snack from Greggs.

If you'd like to add your family to your account, you can do so for £5 per month (although some exclusions will apply).

The Perks account is a cheaper option, with a fee of £7 per month.

Although this account doesn't offer the insurance perks available through the Max account, you'll still receive 4.1% AER on savings and fee-free ATM withdrawals abroad (up to £600).

Likewise, the account also offers the free Greggs hot drink or snack, as well as the free annual Railcard.

As an even cheaper option, the Extra account is just £3 a month, although you'll receive far fewer perks.

The main benefits with this account relate to nifty account management tools, which allow you to connect other banks to your Monzo account and check your credit health.

You can also add your Monzo transactions to a Google Sheet in real time.

The bank's round-up feature can also put your spare change into your savings pot whenever your spend with the card.

Note, these online account management tools are also available through the Max and Perks accounts.

Free equivalent: As well as the free account from Monzo, travellers should also take a look at Starling Bank, which has no fees or charges for spending overseas.

Revolut Metal and Revolut Premium

Beyond the attraction of a brushed steel card, the Revolut Metal account (£14.99 per month) from mobile-only provider Revolut has several benefits for travellers.

For example, you get up to £800 per month in free ATM withdrawals abroad, emergency overseas medical cover, delayed flight and baggage insurance, as well as free airport lounge passes for you and three friends if your flight is delayed by longer than an hour.

Revolut Metal customers can also spend, exchange and transfer money at ‘great exchange rates’ with no fees on Mondays to Fridays, as well as get 10 commission-free stock trades every month. 

If you make an international transfer on the app, you'll also get a 40% reduction in fees.

On top of this, the bank pays up to 4% AER on deposits in the account.

With Revolut Premium (£7.99 a month), you’ll get fee-free ATM withdrawals of up to £400 per month, access to Revolut’s Savings Vault and five commission-free stock trades every month.

You can also spend, exchange and transfer money at ‘great exchange rates’ with no fees on Mondays to Fridays. If you make an international transfer, you'll also get a 20% reduction in fees.

With a Premium account, you'll earn up to 3% AER on deposits.

Free equivalent: Again, Starling’s account sets the standard for traveller-friendly accounts, while Monzo’s free account is a contender. Revolut’s free Standard Account is also worth considering.

The best fee-free credit cards to use abroad

Best traditional packaged accounts

If you’d rather go with a more familiar name, these are some of the top accounts worth looking at, which are listed in alphabetical order.

Most packaged accounts include travel insurance but may offer different perks such as cashback, interest on in-credit balances or fee-free withdrawals overseas so make sure you choose the right account for you.

Club Lloyds Platinum and Club Lloyds Silver

For up to £25.50 a month (£22.50 if you pay in at least £2,000 a month), Club Lloyds Platinum offers worldwide travel insurance among other benefits.

Worldwide travel insurance is offered to account holders up to the age of 80 and covers you and your family for up to 31 consecutive days in any calendar year (including winter sports).

Other extras with this account include AA breakdown family cover, mobile phone insurance and a ‘lifestyle benefit’ of your choice every year.

You can choose from six cinema tickets, an annual digital Coffee Club or Gourmet Society membership, an annual magazine subscription, or 12 months of Disney+.

With this account, you can also earn 1.5% interest on balances up to £3,999.99 and 3% for balances between £4,000 and £5,000, as well as earn up to 15% cashback.

While the monthly fee is pretty eyewatering, you could receive a £5 discount every month that you pay £4,300 or more into the account (£5,500 on joint accounts), or hold savings of £75,000 or more in qualifying accounts.

There’s also the Club Lloyds Silver account, which costs £11.50 a month, plus the £3 monthly fee if you don’t pay in at least £2,000 a month.

With the Club Lloyds Silver account, you’ll get European and UK family travel insurance if you're under the age of 65, mobile phone insurance, AA breakdown family cover, a ‘lifestyle benefit’ and the same in-credit interest as the Club Lloyds Platinum account.

At the time of writing, the bank is also offering a £200 switching bonus to new customers.

All Club Lloyds accounts also offer access to a Monthly Saver paying 6.25% AER on deposits of between £25 and £400 per month.

Free equivalent: You can get some of the same rewards, cashback and interest with the Club Lloyds Account, which is fee-free so long as you pay in £2,000 each month and stay in credit. 

Halifax Ultimate Reward Account

The Ultimate Reward Account from Halifax isn’t cheap, costing £19 per month, but you get a fair bit back.

For example, every calendar month you’ll either get £5 cashback, a free Vue cinema ticket or three digital magazines. You’ll also get access to Cashback Extras.

But you’ll need to meet certain conditions, like either spending £500 on your debit card each month or maintaining a balance above £5,000 for the full month.

Plus, you’ll have to pay at least £1,500 into your account every month and keep your account in credit.

Account holders will benefit from worldwide multi-trip family travel insurance, which includes things like winter sports and golf trips. 

There is also AA breakdown family cover and home emergency cover for up to £250 should you find yourself in a bind, to help you make your home safe and secure or get the energy or water back on after a failure.

Finally, there’s mobile phone insurance, which provides cover for the repair or replacement of your phone, worth up to £2,000, should it break down, get damaged or be stolen or lost.

It covers one phone for a single account holder or two for joint accounts.

Free equivalent: You can get some of the same rewards and access to Cashback Extras with the standard Halifax Reward Account, which is fee-free so long as you pay in £1,500 each month and stay in credit. 

The Co-op Bank Everyday Extra

With a monthly fee of £15, the Co-op Bank’s Everyday Extra account provides mobile phone, worldwide travel and UK and European breakdown cover.

In one particularly attractive feature, the worldwide travel insurance is available for those up to the age of 79, which could make the account a good choice for older travellers.

Its mobile phone coverage has a limit of £1,500 and includes loss, theft, accidental damage and faults. Mobile accessories are also covered up to a maximum of £350. Be aware, there is a £75 excess per claim.

As part of the breakdown cover, you'll receive up to three days' car hire while your vehicle is repaired.

Free equivalent: If you make regular trips overseas, Starling and Monzo have a lot to offer.

At present, the bank is offering a £75 welcome bonus for switchers, plus £25 per month for three months if you regularly use your account.

What's more, the bank will reimburse the first three months of fees if you apply for an account by 13 December. You'll still pay £15 per month initially, but the amount will be credited back to your account during this period.

Nationwide FlexPlus

The FlexPlus account will set you back £18 a month, but it’s another one that will appeal to those who like spending time outside of the UK.

Account holders get worldwide family travel insurance, family mobile phone insurance and benefit from no transaction fees when they use their debit card abroad, as well as get access to exclusive member-only products.

In addition, you get UK and European breakdown cover, with unlimited call-outs for your vehicle and any that you’re travelling in.

On top of this, current account customers can also access Nationwide's Regular Saver, which pays 6.5% AER on deposits of up to £200 per month (falling to 2.15% AER if you make four or more withdrawals per year).

At present, the bank is also paying a £175 incentive to those who open a new acccount.

The best bank accounts for switching bonuses

Free equivalent: If you’re a frequent traveller and want a free account, then Starling and Monzo remain the eye-catching choices.

And if you want a return on your balance then you could do worse than check out Nationwide’s own FlexDirect account, which pays 5% on balances of up to £1,500 for the first year, so long as you pay in £1,000 each month. 

NatWest/RBS Reward accounts

NatWest and RBS operate several packaged accounts, including the Reward Silver account, which costs £10 a month.

It’s worth noting that some of the reward packaged accounts, including the Reward Silver account, are only available to existing customers.

You can earn up to £5 a month in cashback and 1% in rewards when shopping with NatWest's partners.

Other benefits include mobile phone insurance, European travel insurance and fee-free purchases overseas.

The Reward Platinum account includes all of the above plus worldwide family travel insurance and UK breakdown cover. It will cost you £22 a month.

At present, switchers can also receive a £180 welcome bonus,

Virgin Money Club M

The Virgin Money Club M account costs £12.50 a month and offers worldwide multi-trip travel insurance for you and your family, including winter sports and golf.

You’ll also get worldwide family mobile and gadget insurance covering loss, theft, and accidental damage, 24-hour access to a doctor, a concierge service, as well as UK breakdown cover, plus no fees when you use your card abroad. 

Likewise, the bank won't charge you for spending on your card or withdrawing cash abroad.

Free equivalent: Virgin Money’s free M Plus account offers the same in-credit interest and no fees when you use your card abroad.

Top bank accounts for switching bonuses

Comparison of packaged accounts

This table is ranked by price, not quality – you should decide which features are most important to you: