Moneysupermarket.com comments on HBOS's packaged current account

Stuart Glendinning, managing director at moneysupermarket.com, comments on HBOS’s plans to launch a packaged current account, he said:

“So far packaged current accounts have proved more popular with the banks than with customers, primarily because they represent a product that can be up-sold to existing customers that, prior to this, were not paying a fee. Links and discounts are also available for further bank products encouraging more sales and thus margins are improved and profits rise.

“To date not many customers have actively sought a packaged account because, in the main the benefits are superficial are not worth the monthly fee. HBOS appears to making a greater effort with its new Ultimate Reward Current Account (URCA) account with some worthy benefits such as worldwide family multi trip travel insurance which includes ski cover, AA roadside recovery and 24 hour emergency home assistance. Unfortunately HBOS can’t resist the temptation to add loads of fluffy meaningless benefits like the other banks but that aside the benefits are substantial.

“moneysupermarket.com shopped around for the best rates on the internet for some of the core benefits and we found it hard to beat this level of services for the annual fee of £120 per annum that will be paid for the packaged account. However, many people will not want the services offered and consequently the packaged account will be of no interest. But for families with cars who holiday regularly and sometimes go skiing this looks like a good buy.”