Number of added value current accounts grows by 66% in five years

The number of added value (or packaged) current accounts on the market has increased by two-thirds since April 2008 - and, with the growing choice available, it is critical for people to focus on the benefits offered by these accounts when comparing the different options.
 
Defaqto data shows that in April 2008 there were 41 added value current accounts on the market - a figure which now stands at 68.  In fact, since November 2009 there have been more packaged accounts available than standard, free in-credit current accounts.
 
Over the same period, the average monthly fee for a packaged account has gradually increased - from £12.79 in 2008 to £15.11 currently.
 
Brian Brown, Defaqto's Head of Consulting, said: "We have seen the number of added value current accounts grow rapidly over the last five years. Although choice can be good for consumers, there are so many options available that it can be difficult for people to compare what's on offer. Monthly fees haven't increased massively over the last few years, but we are seeing more account variations with a greater number of pricing points. The challenge for consumers is to be able to identify which assortment of benefits, in relation to the account fee, represents the best value for money for their particular circumstances.
 
"If someone is considering opening a packaged current account they should look at each of the incentives on offer, and the level of benefit they provide, as a first step and not focus primarily on price - as, ultimately, paying more for the right account is likely to be a better decision than paying even a small fee for something that won't meet their requirements. 
 
"Our Star Ratings provide an independent rating of the level of features and benefits offered by the different added value current accounts on the market. They provide an at a glance view of where products sit in the market in terms of feature quality and comprehensiveness - with the aim of supporting consumers' decision-making process."