Neglected account deals costing customers

According to a MoneyExpert report, the average rate of interest paid on packaged bank accounts equates to only 1.5 per cent once charges are considered, well below the Bank of England rate.

While these premium deals claim to offer perks such as insurance offers or travel cash deals, people could be risking debt by paying for packages they never use.

“With monthly fees as much as £25 adding up to an annual fee of £300, customers have to make sure they use the special offers and deals,” warned Sean Gardner, chief executive of MoneyExpert.com.

“Anyone considering taking out a packaged account needs to think carefully about what the special deals are, how much they would cost to buy on their own, how often you would use them and whether that is worth the monthly fee.”

A survey last month revealed that a significant proportion of customers had been automatically “upgraded” to such accounts, such that many must check to ensure that they are getting the best deal available from their bank.