Spotlight: Co-operative's Privilege current accounts

The Co-operative Bank has launched a new packaged current account – one of the first to offer a choice of benefits. Packaged current accounts – which charge their customers a monthly fee – have mainly offered fairly useless benefits. The Co-op deal, however, is quite attractive.

Each customer gets worldwide family travel insurance, mobile phone insurance, a £200 interest-free overdraft, as well as permanent access to a savings account that will pay no less than 0.3 per cent below the Bank of England base rate. After that, customers can choose from one of three additional packages: insurance for all cameras, laptops, MP3 players and other gadgets outside the home; cover against ID theft as well as handbag and contents insurance; or four free airport-lounge passes.

All that costs £8.50 a month. The £12 Premier account gives European roadside breakdown cover.

Family travel cover alone is worth the annual £102 for the standard account. The airport lounge passes are worth as much again.