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Packaged bank accounts
A packaged account charges a monthly fee in return for bundled extras: travel insurance, mobile cover, breakdown assistance. They are not inherently bad. The problem arises when someone was sold cover they could never claim on.
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What a packaged account is
Instead of a free current account, you pay a monthly fee, commonly between £10 and £30, and receive a bundle of benefits. For some households that genuinely represents good value, particularly if the travel insurance would otherwise be bought separately.
Over ten years, a £15 monthly fee is £1,800. So the question is simply whether you were in a position to use what you were paying for.
When it may have gone wrong
Concerns typically fall into a few patterns:
- Ineligibility. Age limits on travel insurance, or a pre-existing medical condition that excluded you, meaning you could never have claimed.
- It was presented as compulsory, for example as a condition of getting an overdraft, a loan or a mortgage.
- It was added without a clear decision, during an upgrade conversation, without the fee being made plain.
- Duplicate cover. You already had travel or mobile insurance elsewhere and were not asked.
- No explanation of exclusions, so you believed you were covered when you were not.
Work out what you paid
- Find the account and the date the fee started.
- Check statements for the monthly charge, and multiply by the months held.
- List the benefits included, then note which you were eligible for and which you already had elsewhere.
- If you no longer have the paperwork, ask the bank, or make a free subject access request for the sale records and call notes.
| Benefit | Question to ask yourself |
|---|---|
| Travel insurance | Was I within the age limits? Did a medical condition exclude me? Did I travel? |
| Mobile phone cover | Was my handset eligible? Was it already covered by home insurance? |
| Breakdown cover | Did I have a car? Was I already a member elsewhere? |
| Card protection | Did this duplicate protections I already had by law? |
Making the complaint
Write to the bank setting out when the account was sold, what you were told, and why you believe it was unsuitable. Be specific: "I was 71 when sold this in 2013 and the travel policy excluded travellers over 70" is far stronger than "I never used it".
Use the structure and template in our complaints guide. If the bank rejects it and you are eligible, the Financial Ombudsman Service can consider the case free of charge.
You do not need a claims firm for this. If you choose to use one, read our checklist first, because a percentage fee on a refund of fees you already paid can be substantial.
General information only, not legal or financial advice.