Packaged accounts are where you pay a monthly fee for your account in return for benefits, most often bundled insurance policies, such as travel insurance, mobile phone insurance and car breakdown. If you’ve chosen one based on a rational decision, it’s probably a good account as they can be the cheapest way to get many types of insurance.
But if you were flogged one by a pushy sales agent, told you could only get a mortgage if you opted for the account, or “upgraded” without your consent, you could be owed serious cash. Banks have been found to have systemically mis-sold many of these accounts.
How do I know if they’re right for me? Cancel now if useless
If you don’t need the insurance, then packaged accounts aren’t right for you. Simple.
If you do, it’s all about whether it’s cheaper to buy the insurance elsewhere, so do the maths. Don’t think £15 a month, think £180 a year; so always multiply the monthly cost by 12 to get the cost per year as the way to compare insurance costs to see if it’s worth it.
I’m not sure if I have one — how can I check?
If you’re unsure, the account fee will show up as a transaction on your statement, under the name of the account you’re signed up to. Check current and old statements, or call your bank (you can ask for copies of old statements).
If you find these transactions and don’t remember signing up, that itself could be a sign you’ve got a complaint. If you discover a payment, collect as many statements as you can that contain them. You’ll need the evidence.
