Find out about packaged bank accounts that include insurance products, and what you should consider before opening one.
A packaged bank account is a current account that comes with other goods or services. Generally, these include at least one insurance product (such as travel or mobile phone insurance), but they may also include a range of other non-insurance goods or services (such as airport lounge access).
You usually have to pay a monthly fee for a packaged bank account.
What your bank must do
Your bank or building society must make sure you are aware of the cost of your account. They should also take reasonable steps to check whether you would be eligible to make a claim on each insurance policy provided by the account.
They should share this information with you when you are considering opening the account, as well as the key features and exclusions of each insurance policy.
Your bank should also give you an annual eligibility statement. This will set out the eligibility requirements for each of the insurance policies in the account.
What you should consider before opening an account
If you are considering taking out a packaged bank account you should:
- think about whether you can afford the monthly fee
- consider whether you would use each of the benefits included in the package
- think about whether you have any existing insurance cover similar to those included in the packaged bank account. If you do, you may end up paying twice, but will usually only be able to make a claim on one policy
Already have a packaged bank account
If you decide to open a packaged bank account, you should review your personal circumstances at least annually, when your bank or building society sends you an annual eligibility statement.
You should tell them if your circumstances change, to make sure you are still eligible for your insurances. For example, if you develop an illness that could affect your ability to claim on travel insurance.