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Defaqto points out variation in packaged account charges

Some packaged bank accounts are not good value for money, Defaqto suggested today.The data firm also released new analysis of the market, which showed that monthly charges for these "added value" accounts vary from £3 to £25.Among the "extras" offered by banks in their packaged accounts is travel insurance, card protection and preferential rates on loans.According to Defaqto, each service costs customers an average of £1.27 apiece.David Black, principal consultant of banking at the firm, commented: "The banks are very keen to migrate their customers from free-in-credit current accounts to added value accounts as the latter provide them with an ongoing and guaranteed income stream. The carrot of incentives is the main method by which banks attract new customers to these accounts."He added: "For the consumer the main decision on whether to transfer to a paid for account should be based on whether they actually want the incentives offered and, for those that they do want, whether they can buy those items that they actually require more cheaply independently."

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