Premier Bank Accounts: Are they worth The Money?
Written by: Rebecca Robinson
Premier bank accounts are those you pay a fee to use and in return you are offered savings or deals on insurance or other benefits. It seems attractive on the surface, but are we paying out more money to banks and getting the raw end of the deal or could they actually save us more money in the long run? The miss selling of premier accounts has somewhat tarnished their reputation but a bit of careful research and price comparison and you could make them really work for you.
Are premier bank accounts for you?
The key is to getting the right deal for you and then taking full advantage of it! There’s no point paying out a monthly fee for an account that offers you mobile phone insurance, life insurance and breakdown cover if you don’t have a mobile and your life and breakdown cover are already paid for. However, when you take into account the savings you could make, it can work out the best. For example for £8 per month, the NatWest Select Silver account offers European travel insurance, mobile phone insurance, ID theft insurance, three DVD rentals a month and five music downloads. If this is something you’d make use of anyway, it’s a great deal.
What are the costs involved?
Likewise, the Co-Op Privilege Premier account costs £13 a month which may seem excessive, but considering it offers a £300 interest and charge free overdraft which can save you £4.50 a month, RAC breakdown cover for the UK, Europe and Worldwide, multi-trip travel insurance up to the age of 79 and mobile phone insurance to cover four smart phones in the family, it’s a comprehensive package that can save you hundreds. Just a single insurance policy for an iPhone could cost you around £12.99 per month and a one off multi-trip insurance for the year might cost you around £80. Although the NatWest account might look more appealing as it’s cheaper, for an extra £5 per month the additional benefits of the Co-Op account might save you more in the long run, providing they are benefits that you would either buy separately or make use of.
No fees
There are some accounts offering benefits without a fee to pay. The Nationwide FlexAccount offers free travel European insurance up to the age of 75 and if you need to upgrade to worldwide its only another £20, great for travellers but be sure to advise of any medical conditions or you could be charged. If you aren’t already a customer you will have to switch over and must pay in a minimum on £750 a month to qualify.
Credit check may be required
Like with all standard or premium bank accounts, in order to take one out you will be subjected to a credit check. If you have a poor rating then chances are you won’t be accepted so do check your credit score before applying to ensure you qualify. Another sticking point with the benefits on offer with these premier accounts is that many of the policies need to be activated in order to use them. Many people assume they’re automatically covered when in fact, you need to register your details to begin the policies, especially when it comes to phone insurance. Check with the bank which policies need activating first so you aren’t wasting your money.
New rules have been introduced to stop bank miss-selling these accounts and make them more transparent to customers, but as a customer you should also be vigilant when it comes to small print and realistic about whether the benefits outweigh the cost of a premier account –make sure they work in your advantage!
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