Top Packaged Digital Bank Accounts
Did you know that there are banks that can give you many extra benefits for opening just one type of account? Yes, there are! You can enjoy free use of airport VIP lounges; travel insurance; retirement insurance; discounted mortgages; cashback on every purchase; and a lot more from a packaged bank account. Want to know more? Keep reading!
What is a Packaged Digital Bank Account?
A packaged digital bank account is a type of account with which you can receive normal banking services and other additional benefits for a fee. It could be a checking or savings account.
There are a variety of packaged digital accounts with their various premium services. You can find a bank that offers a packaged account that includes many different special services: a cell phone number, cashback on every purchase, Netflix subscriptions, free VIP lounges at airports, car breakdown cover, extended health insurance while travelling, or a personal attendant to provide answers to all your questions.
Which Benefits Can I Get with a Packaged Bank Account?
Generally, you can get a variety of insurance options and other extra benefits when you open a packaged account with a traditional bank or neobank. The following are the most common offers:
Many packaged accounts come with travel insurance. If you travel often, then getting this kind of bank account will protect you from additional expenses that may arise from any loss that you may experience during your journey. For example, if your luggage is missing or your trip got cancelled, you can be compensated for the loss.
Also, your age might determine your chances of getting this benefit. You may not be qualified for a packaged account if you have passed the age limit on it. Many packaged bank accounts with travel insurance have an age limit of 70 years. Nevertheless, some packaged accounts may charge you a fee to increase this limit. So, there is still hope that you can enjoy this service if you think your age might be a cause for concern.
Another benefit that is often added to a packaged account is device insurance. Depending on the cover, if your mobile phone, laptop, or device that is included in the insurance policy is damaged, lost, or stolen, you will be able to get some money back if you submit a claim. This kind of packaged bank account is really worth having because you can save a lot of money that you would have spent on the repair of your damaged iPhone or any other smart device. All you would have to do is pay a couple of bucks monthly to your bank for the premium account.
If you drive often, it is highly recommended that you get a packaged account that includes a breakdown cover. In that way, it will not cost you a lot of money to fix your car if it breaks down. However, there is a likelihood that you already have a standard car insurance policy. So, you need to ensure that you are not already paying for breakdown cover before opening a packaged bank account.
Some packaged accounts offer extra rewards. You could earn cashback on your household bills, interest-free overdrafts, fee-free ATM withdrawals up to a certain amount, or retail discounts when you shop at certain stores.
Are Packaged Accounts Worth It?
Packaged digital accounts may or may not be worth having. It all depends on your situation. That is why you need to think of the following before opening a packaged account:
- Annual cost: Compare the amount it will cost you to use a packaged account per year with what it will cost you to buy insurance separately and choose the cheapest option.
- Services usage: Ensure that you will use the additional services before opening a packaged account. If you do not travel often or do not own a car, or if your phone is not worth insuring, you may not need a packaged account.
- Coverage status: You may already have a breakdown cover in your car insurance policy, device coverage in your home insurance policy, or travel insurance on your credit card.
- Coverage level: Most packaged bank accounts have high cover levels. However, you may be okay with having a less comprehensive policy.
Will Your Medical Condition be Covered?
A packaged account is a good option for you if your age or health makes a separate travel or health insurance policy too expensive for you. However, depending on your health status, you may need to find out whether your chosen bank covers pre-existing medical conditions (PEMCs) in its packaged account—usually, they are not automatically covered. Hence, it is necessary to declare any current health conditions when opening the account and be prepared to pay extra for them to be covered or accept limited cover.
Is It Worth Paying for a Packaged Account?
Packaged accounts are worth paying for if you will be using the benefits. Otherwise, you should consider having a current account separate from your insurance accounts. Also, you need to ensure that you do not have duplicate insurance cover elsewhere, such as having a car insurance policy that includes breakdown. In addition, you may save more money on fees and charges by keeping only a standard account if you use an overdraft often.
Should You Open a Joint Packaged Account?
You can get more value from a packaged account by sharing it with someone you live with. In this case, you would be opening a joint packaged bank account, which allows the payment of one fee for two people. However, joint packaged accounts come with the major disadvantage of making you liable for your partner’s debts.
- No need to pay for separate insurance
- Full insurance for one year
- One monthly fee for all the packages
- High-end insurance cover levels
- Cashback on your transactions
- Discount cards for various retailers
- It might come with extra benefits that you do not need
- Monthly fee might be high
- Age and medical limits for some insurance policies
What to Do if You Think You’ve Been Mis-sold a Packaged Bank Account
Sometimes, people get mis-sold packaged bank accounts. But what does this mean? There are different instances in which someone could be mis-sold a packaged bank account. They include the following:
- A packaged bank account was created for you without your consent.
- You were told that your packaged bank account would be free of charge.
- You were not clearly informed about the cost of your packaged bank account.
- The features of your packaged bank account were not properly explained to you.
- You were pressured or forced into taking out a packaged bank account.
- Your bank knew that you were not eligible for some of the benefits but still opened a packaged account for you.
- You were told that you could not get a loan or mortgage without a packaged bank account.
- You were told that your credit score would increase if you opened a packaged account.
- The packaged bank account you were given is not suitable for you.
So, if you think that a packaged bank account has been mis-sold to you, then you need to make a formal complaint via letter to your bank and get your compensation. If your bank’s final decision is unpleasant to you or you have not gotten a reply within two months, you can take your complaint to a higher agency.
There are different organisations you can contact for help with resolving any conflict between you and your bank or financial service provider. In the United Kingdom, customers can settle disputes with their financial service providers for free by requesting the help of the Financial Ombudsman Service (FOS). In the European Union, you can contact the Financial Dispute Resolution Network (FIN-NET) for further assistance with getting compensated. An option for those in the United States of America is the Consumer Financial Protection Bureau (CFPB) Ombudsman.
Best Packaged Digital Bank Accounts
Here is our list of the best digital banks with which you can open packaged accounts and enjoy a wide range of benefits.
Revolut offers free medical insurance to its Premium account holders. They can enjoy this packaged service when they travel overseas. Also, customers who have the Revolut Metal account can get cashback in any cryptocurrency of their choice.
Neon is a Swiss digital bank. It offers mobile phone insurance, a three-year warranty on electronic devices, shopping insurance, travel insurance, and many other packaged benefits.
bunq Easy Bank
You can get a joint sub-account and a full bank account with the Easy Bank package from bunq. This neobank offersother benefits that might interest you.
N26 offers mobile phone insurance which covers your phone up to €1000 in case of theft or damage. You can enjoy this service through its Metal packaged account. It also provides emergency medical cover, trip cancellation insurance, car rental insurance abroad, and flight delay and luggage coverage. In all these cases, you are sure to get compensated for any loss.
Earn cashback and other exclusive rewards when you save up to €150 monthly with Vivid Prime. You can also get 1.5% cashback on all card purchases.
Nexo is a leading digital asset institution that specialises in helping people borrow and lend Bitcoin, Ethereum, and other cryptocurrencies. Through its Prime packaged account, it offers comprehensive $375 million insurance coverage to help you stay protected.
Monzo offers phone insurance coverage for your smartphones worth up to £2,000 and accessories that cost up to £300. It covers cracked screens, damaged phones, stolen phones, and the replacement of headphones and chargers
Tomorrow.one Zero Premium account
If you want more for your banking and the sustainability of the planet, then a Zero account from Tomorrow is a good option for you. It allows you to enjoy a wide range of sustainable premium services, including unlimited free withdrawals at VISA-supported ATMs worldwide using its wooden card and carbon footprint analysis of all your purchases.
NETELLER is a digital wallet that makes it easy for individuals, gamblers, and businesses to manage their payments and money transfers. It offers a wide range of benefits to its customers through its VIP programme. The reward you are qualified to receive depends on your VIP level. Your transfer limits increase as you attain Silver, Gold, or VIP status. You will also benefit from lower currency exchange fees, multi-currency accounts, and free money transfers between NETELLER accounts.
ecoPayz is a similar digital wallet to NETELLER. It is reliable and secure. With an ecoPayz Gold, Platinum, or VIP account, you can enjoy reduced currency conversion fees and increased limits on your transfers and withdrawals. You can also get up to five ecoVirtualCards and up to three physical ecoPayz Mastercard cards for convenient payments and withdrawals.
A packaged bank account refers to an account with added rewards. It can also be called a “premium” account, which comes with extra benefits such as shopping insurance, event ticket insurance, franchise when renting a car when travelling, insurance against theft or loss of sports equipment, preferential exchange rate and much more.
Yes, you can! It is a good way to reduce the cost of having a packaged bank account because you and your partner will pay one fee for it instead of separate fees for individual premium accounts. However, the availability of this offer depends on your bank or financial service provider.
Yes, you can! Since packaged accounts work like standard accounts, it is possible to get an overdraft easily if you have a good credit score.
A packaged bank account could be very attractive. But it is helpful to ensure that the features and benefits you may get from such an account are worth the cost. Your personal circumstances will determine how much value you can get from a packaged bank account. Your goal should be to ensure that you are not paying double for the same services that are covered in your packaged account and separate insurance policies.