The current accounts that pack more in

The Halifax is making a play to break into the packaged current account market with its Ultimate Reward account, to be launched tomorrow. This boasts a headline rate of 6 per cent (for deposits up to £2,500) as well as a £300 interest-free overdraft.

Packaged deals of this type carry a range of personal finance products alongside the current account - usually at competitive rates - but they come at a price.

In the case of the new Halifax account, customers will have to pay a fee of £10 a month. For this, the bank claims they will receive benefits "worth over £800 in total". These include family worldwide multi-trip travel insurance, RAC breakdown cover, mobile phone insurance and one percentage point extra on the rate of interest if they open separate Halifax Guaranteed Saver or Instant Saver accounts.

There is no minimum monthly funding requirement for the new current account, which is available at branches, over the phone and online. And as a further incentive, those customers who switch banks and open an Ultimate Reward account before 23 March will get a "£100 switchers' bonus payment".

But there is a catch: to qualify for this bonus, you'll have to pay £1,000 a month into your account - on top of the £10 monthly fee.

Packaged accounts don't usually find favour with consumer bodies or price- comparison websites, chiefly because the various parts of the package can usually be bought much cheaper individually.

"I'm generally not a supporter of packaged accounts as they're not designed to meet customer needs but to boost profitability," says Stuart Glen- dinning of the price-comparison service Money-supermarket.com. "But of all the packaged accounts I've seen, [the Halifax's] is easily the best."

However, as with any packaged account, he urges potential customers to weigh up the benefits first and to look at how many of the features they'll actually use.

Samantha Owens of financial analyst Moneyfacts says it is difficult to compare the range of benefits available with packaged accounts on a like-for-like basis. She urges consumers to ask themselves whether they would be better off having a non-fee-charging current account and buying the relevant benefits separately.

If you're simply after high interest on credit in your current account, you could try the Premier Direct account from Alliance & Leicester. It pays 5.94 per cent (up to £2,500) provided you pay in £500 a month.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

PROMOTED VIDEO
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Client Services Manager - Relationship Management - London

    £30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

    Recruitment Genius: Credit Controller / Customer Service

    £18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...

    Guru Careers: In-House / Internal Recruiter

    £25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...

    Recruitment Genius: Tax Assistant

    Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...

    Day In a Page

    Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

    Celebrities call on David Cameron to take more Syrian refugees

    One young mother tells of torture by Assad regime
    The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

    The enemy within

    People who hear voices in their heads are being encouraged to talk back
    'In Auschwitz you got used to anything'

    'In Auschwitz you got used to anything'

    Survivors of the Nazi concentration camp remember its horror, 70 years on
    Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

    Autumn/winter menswear 2015

    The uniforms that make up modern life come to the fore
    'I'm gay, and plan to fight military homophobia'

    'I'm gay, and plan to fight military homophobia'

    Army general planning to come out
    Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

    What the six wise men told Tony Blair

    Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
    25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

    25 years of The Independent on Sunday

    The stories, the writers and the changes over the last quarter of a century
    Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

    Homeless Veterans appeal

    As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
    Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

    Smash hit go under the hammer

    It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
    Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

    The geeks who rocked the world

    A new documentary looks back at origins of the computer-games industry
    Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

    Belle & Sebastian is taking a new direction

    Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
    America: Land of the free, home of the political dynasty

    America: Land of the free, home of the political dynasty

    These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
    A graphic history of US civil rights – in comic book form

    A graphic history of US civil rights – in comic book form

    A veteran of the Fifties campaigns is inspiring a new generation of activists
    Winston Churchill: the enigma of a British hero

    Winston Churchill: the enigma of a British hero

    A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
    Growing mussels: Precious freshwater shellfish are thriving in a unique green project

    Growing mussels

    Precious freshwater shellfish are thriving in a unique green project