Banks will have to tell customers if they are eligible for insurance 'packs'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.New rules concerning packaged current accounts come into force tomorrow, under which banks must send customers annual statements detailing whether they are still eligible to receive the insurance policies they are paying for.
Banks must in future also check the eligibility of customers for insurance policies when they first apply for a packaged bank account, some of which cost up to £300 a year.
"For too long customers have been paying over the odds for bank accounts that offer benefits that they may not even qualify for," pointed out Michael Ossei, personal finance expert at uSwitch.
"The new rules will bring some much-needed clarity to the packaged account market and may even force a shake-up within the industry."
He said he expects the onus to shift towards the consumer choosing the features they want to accompany their bank account, rather than having the banks decide for them.
"We are already seeing banks such as Barclays offer a selection of 'packs' for customers to choose from to enhance their account, such as a travel pack that includes breakdown cover and travel insurance and a tech pack that insures gadgets."
However, Andrew Hagger of Moneycomms said some accounts aren't just money-spinners for the banks. He said accounts from NatWest – Select Silver – and Nationwide's FlexPlus, which both charge £10 a month, have features that could be worthwhile for current account users.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments