Premium Accounts

The hard-sell

The first thing that’s likely to happen in the UK is a big new push towards ‘premium accounts'. These are the fee-charging accounts that most banks and building societies already offer. The hope is that by persuading us to sign up voluntarily they can say we weren’t that bothered about free banking in the first place. But independent experts have always been wary of premium accounts.



These offer a range of extra benefits in return for monthly fees that start at £5 and can top £20. Take full advantage of the benefits and you can just about break even on the deal. But otherwise the banks will be the winners. The best freebies on premium accounts are things like annual travel insurance which can be worth around £70 a year to individuals and around £150 to families. Lower overdraft charges or higher interest rates on credit balances can also be attractive. But other features like will-writing services probably aren’t that valuable, especially as they won’t be used very often. So check very carefully that a premium account is worth having before you agree to upgrade. That flash gold debit card may be more expensive than it looks.