The money saving expert has shared the ‘top’ packaged bank account currently paying you to switch
Martin Lewis has revealed the ‘top’ packaged bank account offering free cash and a range of additional perks that could save you money on travel insurance, mobile phone insurance and breakdown cover. The recommendation came during a recent episode of his BBC Sounds podcast show, entitled: “Free money, £100s free insurance and more – all from switching bank accounts!”
Martin discussed switching your bank account and which banks are prepared to pay you money to do so. He also outlined ‘best buy’ packaged bank accounts, where you pay a monthly fee and receive perks such as travel insurance, mobile cover and breakdown cover included, reports the Mirror.
In a clip about the episode posted 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 are listed:
- 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
Further details about the Santander account have been shared on the MSE website. It states: “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.”
The main perks are listed by MSE as:
MSE further notes: “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.”
According to the MSE team, packaged bank accounts are a form of current account that typically charge a monthly fee in exchange for various insurance benefits. The perks you gain can vary depending on the provider, and the monthly charge can occasionally be quite substantial, so it’s vital to ensure you’ll make full use of the advantages before deciding to open one.
Like a standard current account, packaged bank accounts allow you to send and receive money, make payments, and settle bills through Direct Debit, amongst other functions. Generally, the advantages of these accounts include mobile phone insurance, travel insurance, car breakdown cover, gadget insurance, and other benefits such as an interest-free overdraft, cashback at selected retailers, or no charges for using your debit card overseas.
