MoneyExpert warns of packaged account charges

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MoneyExpert warns of packaged account charges

Mon 9th Oct 2006

The independent comparison website MoneyExpert has revealed that the average annual bank charge on packaged accounts stands at £140 per year.

An average interest rate of 1.5 per cent was found to be given to customers with packaged accounts and of the 33 packaged accounts on the market, ten offered more than this.

With an average of £11.59 being paid a month by customers, the lowest monthly fees were found to be £2, while the highest figure was £25 per month.

Chief executive of MoneyExpert, Sean Gardner, relayed: "Anyone considering taking out a packaged account needs to think carefully about what the special deals are, how much they would cost to buy on their own, how often you would use them and whether that is worth the monthly fee."

The added extras of packaged accounts account for their popularity and customers receive a range of benefits such as discount deals with other companies and free travel insurance.

For example, the Lloyds TSB Premier current account charges £25 per month in return for £639 worth of savings annually, including mobile phone insurance, identity theft protection and AA breakdown cover.

MoneyExpert found the best interest rate deal on a packaged account came from the HSBC Bank Account Plus with 5.84 per cent being offered to customers.

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