This month, Halifax, NatWest, and Royal Bank of Scotland have all increased their annual prices on packaged accounts by £24 since the start of July, according to research from Fairer Finance.
But while prices have gone up, there are still good deals to be had on the accounts that offer a huge range of benefits and insurances, which can save the day should anything go wrong while you’re chasing warmer climes.
To help you decide which to choose, YourMoney.com has analysed the leading providers and included advice from experts and trade bodies on what to look out for when selecting an account that could save you hundreds when on your holidays.
Before selecting the account you need, Sam Richardson, deputy editor of Which? Money, says while the accounts “can be a convenient option” for customers, travellers should take their time shopping around so they don’t get lumbered with an account they don’t need.
Richardson said: “Packaged bank accounts can be a convenient option for people who want a range of insurance products without the hassle of buying them separately. They could also work out cheaper than buying individual policies.
Click here to view our Sponsored Content Hub
“As a general rule, packaged bank accounts are only worth it if you actually use the benefits they offer. Check whether you’re already getting those benefits – for example, your mobile phone and gadgets may be covered by your home insurance,” he said.
The top-rated packaged accounts
1. Nationwide Flex Plus
The leader of the packaged account market for travellers is currently the Nationwide FlexPlus, according to both MoneySavingExpert and Which? Money.
It scored a service rating of 87% by MoneySavingExpert and is considered a Which? Best Buy among its experts. The account costs £13 each month for customers, adding up to £156 for the year, and requires no minimum amount to be paid into it.
One major perk of this deal is mobile phone cover for handsets worth up to £500 for you, your partner and your children (provided they live with you). The children must be aged under 19 (or under 22 if they are in full-time education), and not married or in a civil partnership.
The excess comes to £50 for damage or £75 for Apple iPhones, while loss or theft of the device will cost £100 (£125 for iPhones).
It also has world family travel insurance (for you and your partner plus a ‘dependant’ under the age of 23) for any trips around the world, including winter sports, business or wedding trips and even golf cover.
The breakdown cover provided by The AA will apply to travelling in the UK and countries in the EU. Also, anyone driving your car will also be covered, as long as they have your permission before driving.
However, other gadgets including laptops and tablets are not included under any of the insurance policies.
Which noted: “There are no age limits with Nationwide’s travel insurance, making it worth considering for older travellers who are struggling to find travel insurance elsewhere.”
2. Co-op Bank Everyday Extra
In a close second place, according to Which Money?, is the Co-op Bank Everyday Extra, thanks to its lack of excess needed to be paid on travel claims. The account is slightly more expensive at £15 per month (£180 per year), but also has no minimum pay-in.
The travel insurance will cover you and your partner even if it is not a joint account, up to your 80th birthday, and allows multiple trips of up to 45 days per trip. This is worth considering taking into account ABI’s advice on 31-day policy cover.
For winter sports, the age limit is 65 and this has a maximum of 21 days covered at a time within a 12-month period.
Your children are also covered, provided they live at the same address or are in full-time education and are aged under 22. However, if your child is married, they will not be eligible to make a claim.
The mobile phone insurance covers you and the joint account holder for a maximum of two claims in a year for theft, loss and damage of your phone up to a value of £1,500, plus any accessories including cases and headphones (up to £350). Any accessories must have been damaged or lost at the same time as the phone, and the excess fee is £75.
The breakdown cover is with RAC and is applicable to just the account holders in any car driving in the UK or in Europe.
3. Halifax Ultimate Reward Current Account
Those are the standout top two, but if you want cover for your home should a house-sitter spot anything that happens while you’re away, the more expensive Halifax Ultimate Reward Current Account (£19 per month) could be worth considering.
This offers similar travel and mobile phone insurance policies, while the breakdown cover is only eligible in the UK.
But it is the leading packaged account to offer home emergency cover too, which means a professional will attend your home if an “unexpected incident” occurs.
If your electrics were to fail, an electrician can be called out to your home up to a value of £250 each time.
To summarise the benefits of packaged accounts, Alastair Douglas, CEO of TotallyMoney, says: “If used correctly, packaged bank accounts can get you hundreds of pounds of insurance for a fraction of the cost.”
However, if you already have an account, he thinks you should “stay sharp” by reviewing your annual statements and “be ready to jump ship to a free account if you’re not getting your money’s worth.”
