The best packaged bank accounts of 2020

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We reveal the best packaged bank accounts for insurance extras like travel, breakdown cover and mobile phone insurance and identify the ones that are actually worth their monthly fee.

From mobile phone and travel insurance to car breakdown cover and interest-free overdrafts, bank accounts can come with a variety of added perks these days.

Known as 'packaged bank accounts', they come with a monthly fee that is taking directly out of your account by your bank - but not all of them are worth the cost.

Packaged bank accounts are becoming more popular in the UK, and there a whole host of different options from banks and building societies. A lot of these accounts have a bad reputation due to some questionable sales tactics used by bank staff in the past, which has led to an increase in compensation claims from customers who insist they were mis-sold a packaged bank account.

Learn more: Reclaim packaged bank account charges

Despite this, there are still some packaged bank accounts that offer customers value for money when combining several 'small' insurance policies into one payment. Bundling products like mobile phone, travel and break down cover can work out cheaper and more convenient for you - if you know where to look.

To help you find the best deal we've identified the best packaged bank accounts that offer value for money below...

NOTE:

It is only worth paying for a packaged bank account if you actually need and would benefit from the extras it provides.

For example, there’s no point paying for breakdown cover if you don’t drive, or paying for mobile phone insurance if your phone is already covered under your home insurance or another policy.

Top 5 packaged bank accounts 2020

After reviewing the current packaged bank accounts available from high street banks in the UK, these are the top five in terms of overall value for money...

Nationwide FlexPlus account

Cost: £13 per month

Perfect for: Families

Benefits: Family travel insurance (worldwide inc. winter sports), car breakdown cover, interest-free overdraft (£100), family mobile phone cover (£1,000 limit)

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At £13 per month, Nationwide's FlexPlus account is one of the most popular packaged bank accounts. For the monthly fee customers get worldwide travel insurance for the family with an upper age limit of 74 - which includes winter sports as well as business trips, weddings and golf holidays.

The policy includes children up to the age of 18 (or 22 if they are still in full-time education) and claims can be made twice a year, with a £50 excess. The travel insurance also includes cover for travel disruption caused by the weather or ash clouds, as well as the airline/travel company going bust.

While you are abroad you can also get commission-free cash withdrawals, but any purchases made on your debit card will incur a 2% charge..

The account also features free breakdown cover and recovery for the UK and EU. This comes with an unlimited amount of call-outs, no excess to pay and cover for you as a driver or a passenger.

The mobile phone insurance is pretty standard, providing cover if your phone is lost, stolen, damaged or faulty - typically the same cover on a standard home contents insurance policy.

Halifax Ultimate Reward

Cost: £17 per month

Benefits: £75 cashback, travel insurance (worldwide inc. winter sports), AA breakdown cover, mobile phone insurance, home emergency cover (up to £250)

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There is a price of £17 per month for the Halifax Ultimate Reward Current Account. Customers have the chance to earn up to £60 back every year (up to £50/month) for each month they either spend more than £500 or keep their balance above £5,000)

For the monthly fee, customers will get worldwide family travel insurance up to the age of 71. Winter sports and golf are included in this, and it comes with a £50 policy excess. The cover can be used for children under the age of 18, or under the age of 24 if in full-time education.

The mobile phone insurance protects only the owner/account holder for loss, damage and theft (up to £2,000 with a £100 excess), while the free AA breakdown cover includes ‘home start’ cover as standard.

So far, so standard. But the big draw of this packaged account is that it comes with £250 worth of home emergency cover, which can be used in the case of emergency for things such as burst pipes or break-ins.

There's also a card cancellation service, which can cancel all of your cards if they are lost or stolen.

Co-op Bank Everyday Extra

Cost: £15 per month

Perfect for: Couples and older travellers

Benefits: Travel insurance (worldwide, no excess), car breakdown cover (UK and EU), mobile phone insurance, £125 cashback

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The Co-operative Bank's Everyday Extra Current Account features worldwide AXA family travel insurance up to the age of 80, which includes winter sports and golf holidays with no policy excess.

The family travel insurance covers all dependent children up to the age of 22, and they can also travel alone under the policy - although any child under 18 travelling alone must be taken and picked up from the airport by a 'responsible adult'.

One of the highlights of this benefit is that there is no payable excess when making a claim.

The breakdown cover comes from the RAC and includes a courtesy car for a total of three days if necessary, as well as an overnight accommodation if it is required. The account holder will be covered in any car they drive.

The mobile phone insurance covers the account holder for theft, loss, accidental/water damage, faults and unauthorised calls and has a payable excess of £75.

Yorkshire / Clydesdale Bank Signature Current Account

Cost: £13.50

Benefits: Travel insurance (inc. winter sports), mobile phone cover (£1,000 limit), gadget insurance (tablets, laptops, cameras etc…), car breakdown cover.

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Although the standard benefits are slightly more limited than those on offer from the packaged accounts above, the Signature Current Account supplied by both Yorkshire and Clydesdale Bank's provides a few interesting extras.

The family travel insurance, provided by American International, includes cover for winter sports and golf holidays as well as weddings, available to anyone up to the age of 75. The car breakdown cover is provided by Green Flag and covers your car whether at home or on the road, but will not help you in your onward journey if it cannot be repaired.

In terms of mobile phone insurance, the policy will protect against theft, lost, damage and faults (up to £1,200) and allows for two claims per year with an excess between £50 – £100.

However, an interesting feature is the gadget insurance which is not available on any of the above accounts. This covers gadgets such as laptops, tablets, cameras and other tech that is worth between £50 and £750.

It also offers a unique feature called 'ID Defender', which provides customers access to their online credit report and encryption software to keep personal information safe and secure online.

NatWest Reward Platinum

Cost: £20 per month

Benefits: Travel insurance (worldwide, inc. winter sports), mobile phone insurance, car breakdown cover, 2% cashback on household bills

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The one feature that stands out on the NatWest Reward Platinum current account is the 2% cashback on household bills that are paid by Direct Debit via the account. This can help reduce the cost of bills and, if bundled with other savings made by the other features, can make the account worthwhile.

Account holders will also earn a minimum 1% cashback when shopping at retailers partnered with NatWest.

However, at £20 per month this account is the most expensive out of the top five so should only be considered if you will be making use of the other, more valuable features.

These include worldwide family travel insurance which includes winter sports cover, car breakdown cover from Green Flag and mobile phone insurance for loss, theft, damage and breakdown.

The NatWest packaged bank account also has a few nice extras, such as free access to airport lounges across the UK, discounts on holidays when booking with Platinum Travel Service and 50% off (or 2-for-1) at thousands of restaurants with Tastecard.

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