Do You Pay A Fee For Your Bank Account?

Have you ever used the banking facilities associated with your account? Are they worth the price? For some they're not, but others save £100s a year.

Calculate the real annual cost. For example, if you're paying just £10 per month, that's actually £120 a year. Just because getting the packaged account gives you "better rates", don't think that means you've got a top deal. The rates may be better than the pitiful deals you'd get otherwise, but they're easily beatable by the fees-free deals listed elsewhere in this guide.

As the rates aren't good, you need to evaluate the benefits the account gives you. Do you ever use them and if you do, is the account fee cheaper than getting them separately? For example, for less than £40 a year you can get annual travel insurance or breakdown cover.

If the account doesn't save you money, ditch it and preferably switch to a non-fee account with the best rates.

Paid for bank accounts

Packaged and premium current accounts are those where customers pay a fee to receive an enhanced bundled of added extras or services with their banking.

Typically a packaged account will include insurance offers, such as travel cover, mobile phone cover and breakdown assistance. . There may also be the ability to earn interest on balances. A Premium account offers more and charges more and will include a personalized service and perhaps a minimum salary level.

Banks and building societies have been keen to promote fee-charging accounts in recent years and for those who make use of all the facilities they can be worth it. 
However, if you are considering one, make sure you weigh up what you are getting and how much you are paying for it. A monthly fee may seem like a relatively small amount, but over a year that adds up to a considerable sum. Ask yourself whether you could get the same extras for a better price, or with more benefit, by taking out standalone policies. 

Basically, consider a standard current account that offers interest, a reward payment or even a bonus for joining, will deliver benefits that can be balanced against the cost of buying the extras a packaged account is offering.