The Money Saving Expert founder has shared the ‘top’ packaged bank accounts ‘best buys’
Martin Lewis has shared the ‘top’ packaged bank account for free cash and various extra perks that can save you money on travel insurance, mobile phone insurance and breakdown cover. The recommendation was made during a recent episode of his BBC Sounds podcast show, titled: “Free money, £100s free insurance and more – all from switching bank accounts!”
Martin spoke about switching your bank account and which banks are willing to pay you money to do so. He also explained ‘best buy’ package bank accounts, where you pay a monthly fee and can get perks like travel insurance, mobile cover and breakdown cover included.
In a clip about the episode uploaded to his TikTok account, Martin Lewis said: “Do you shell out serious money for travel insurance, mobile phone cover and breakdown cover? If you do, especially if there’s a lot of you in the household, so you know that’s all of your kids mobile phones as well as yours, it can be big money. But there is a way you can save hundreds of pounds via a bank account.
“Specifically, what’s called a packaged bank account. Now, that’s where you pay a monthly fee, usually between about £12 50 and 20 quid a month. So hundred and fifty pounds to £240 a year, and you get all of that insurance thrown in. They call them bank accounts. I actually think of it as a bundle of insurance with a bank account added on top.
“And the reason I’m telling you about this right now is some of those bank accounts are currently paying you to switch to them. You’ve got Santander, Nationwide and co op paying between £175 and £200 to switch. Take Santander. It costs £17 a month, but you get 200 quid.
“So, that means the first 11 months are effectively covered for free. And you get annual worldwide family travel insurance, mobile phone cover for everybody in the household, and UK and European breakdown for the account holders, which you could be paying hundreds of pounds a year for anyway. This way it’s free.”
On the Money Saving Expert (MSE) website, the ‘top’ packaged bank accounts best buys include:
- Santander, FREE £200, £17/mth – top all rounder + 1% cashback + 11mths ‘free’ + £25 voucher
- Nationwide, FREE £175, £18/mth – top for older travellers + 9mths ‘free’
- Co-op Bank, FREE £175, £18/mth – decent alternative paying switch cash
More details about the Santander account have been shared on the MSE website. It says: “Santander Edge Explorer: FREE £200 for switchers (plus £25 voucher), so 13 months of fees are covered by the switch bonus. £17/mth fee includes.” MSE lists the main perks as:
MSE adds: “How to get it: One off £1,500 min pay in. Switch 2+ Direct Debits. To get the voucher, open the account via our links and either switch in from a non-Santander account OR make 5+ debit card payments within 30 days.”
The team at MSE says packaged bank accounts are a type of current account that usually comes with a monthly fee in return for different insurance benefits. The benefits you receive can differ depending on the provider, and the monthly fee can sometimes be quite high, so it’s important to ensure that you’ll take full advantage of the perks before you decide to open one.
Similar to a regular current account, packaged bank accounts let you send and receive money, make payments, and pay bills through Direct Debit, among other things. Typically, the benefits of these accounts include mobile phone insurance, travel insurance, car breakdown cover, gadget insurance, and other perks such as an interest-free overdraft, cashback at certain stores, or no fees for using your debit card abroad.
