Finance glossary
Packaged Bank Account
Also known as: Packaged current account, Added-value account
In simple terms
A packaged bank account is a current account that charges a monthly fee in return for extra perks — such as travel insurance, breakdown cover or mobile-phone insurance — bundled together.
On this page
What does packaged bank account mean?
A packaged bank account — sometimes called an added-value account — is a current account that charges a monthly fee in exchange for a package of benefits. Common perks include travel insurance, mobile-phone insurance, breakdown cover and sometimes preferential rates.
It works like an ordinary current account for day-to-day banking, with the extras layered on top for the monthly cost.
How a packaged account works
You pay a set fee each month, and in return you can use the bundled benefits as if you had bought them separately. Whether it is good value depends on whether you would actually use — and can actually claim on — those benefits.
The insurance in these accounts often has eligibility conditions and age limits. For example, travel insurance may not cover pre-existing medical conditions or travellers above a certain age, so the cover can be worth less to you than it first appears.
How could this affect me?
If you would use all the perks and they suit your circumstances, a packaged account can be cheaper than buying each benefit on its own. Add up what the individual policies would cost and compare.
If you would not use the perks, or cannot claim on them because of age or health conditions, you are paying a monthly fee for little in return — and a free current account may serve you better.
Things to watch out for
- You pay the fee whether or not you use the perks — work out if you actually would.
- Bundled insurance often has age limits and excludes pre-existing conditions, so check you are eligible to claim.
- You may already have some of the cover elsewhere, for example through another policy or a family member.
- A free current account may be better value if the extras do not suit you.
Know your rights
- When selling a packaged account, providers must check the benefits are appropriate for you and tell you about eligibility restrictions, under FCA rules.
- If you were mis-sold a packaged account — for example, sold insurance you could never claim on — you can complain to the provider.
- If the provider does not resolve your complaint fairly, you can escalate it to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Packaged bank accounts explained (opens in a new tab). Accessed 22 Aug 2026.
- FCA, ICOBS 6A — packaged bank accounts (opens in a new tab). Accessed 22 Aug 2026.