Five questions about: Packaged accounts

 

Simon Read
Friday 19 July 2013 21:12 BST
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Are these the expensive current accounts?

Yes they are. Banks charge up to £25 a month for so-called premium accounts which offer a range of extras, such as travel cover or mobile phone insurance.

Are they worth having?

Santander thinks not. It's scrapping all its paid-for packaged accounts from October and transferring customers to its Everyday current account. Also, figures published by the Financial Ombudsman this week revealed the growing mis-selling story that is packaged bank accounts.

What figures?

The Ombudsman said the number of complaints received about packaged accounts in the past three months was almost half the total received in the whole of last year. On top of that, some two thirds of the complaints were upheld, a much higher rate than many other money products.

Is that why Santander has stopped?

Not according to the bank. It explained: "Customers want a range of products that is easy to understand."

Are packaged accounts easy to understand?

No, it's not easy to know if you're getting any value for the extra cash you pay. In most cases, it's money poorly spent.

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