Are packaged bank accounts really worth it?
As many elements of "free banking" start to disappear from the UK financial scene there are concerns that some packaged bank accounts are not worth the extra money. The vast majority of UK banks offer a service which, for a small payment per month, will give the customer access to a range of insurance policies and other services at "at no extra cost". These include amongst others, travel insurance, phone insurance and other similar useful services. But are they really worth anything to the traditional UK customer?
Slowly but surely a number of nightmare stories are starting to emerge from the "premium banking" sector where many of the insurance policies offered as part of a package end up being effectively useless. From travel policies which do not cover countries or areas of the world to you are looking to travel, to phone insurance policies which appear to be deliberately complex and difficult to activate in an emergency. While there have been cases of customers receiving better standards of service when they complain, should we really need to complain to collect the "offers" to hand?
The harsh fact is that as free banking continues to disappear from the UK, more and more of us will be charged a monthly fee for our banking arrangements. Whether we get better value for money remains to be seen.
Share this..
Related stories
UK motor insurance premiums increase yet again
The AA insurance has today commented upon the state of the UK motor insurance market with a suggestion that the average comprehensive motor insurance policy is now costing in excess of £1000 a year. This is an increase of around 20% on the 2008 figure and is predominantly because of fraudulent claims and the damage caused by uninsured drivers in the UK. All in all it is believed that UK motori...
Read MoreUnite union calls off strike ballot
In a sign of the times it was revealed today that the Unite union has called off the forthcoming ballot for a third round of industrial action against British Airways. This comes only hours after British Airways tabled a new proposal for the Unite union to consider which many hope will see the end of this disastrous and highly destructive period of industrial action. So are both sides willing to c...
Read MoreWhat will happen at the next MPC meeting?
As we approach the next meeting of the Bank of England Monetary Policy Committee (5th March) there is a general consensus that interest rates will be reduced but there is some debate as to whether this will have any impact on the economy. The vast majority of economists expect a 0.5% reduction in UK base rates which would take them down to 0.5% although there are strong suspicions that the event w...
Read MoreShould politicians control the economy?
As we approach the next general election there are serious concerns that the UK government, and other governments around the world, will use taxpayers funds to shore up the economy in the short to medium term and offer "incentives" to those who may vote for them. While it will be the Labour government which will attract his attention in the short term there is no doubt that each and every governme...
Read MoreIrish government plan £1.8 billion public service budget cutbacks
The Irish government has today confirmed plans to reduce the public service spending budget by £1.8 billion year although discussions with the unions have broken down without an agreement. As a consequence the government has been forced to push ahead with plans to introduce a pension levy on public sector workers and freeze pay increases in the short term. As money becomes tighter for the Irish g...
Read More