Packaged current account fees increase

The number of packaged current accounts available has grown by 94% over the last four years during which time the average monthly fee has increased by 42%, according to research by Defaqto.

Additionally the number of packaged current accounts available now exceeds the number of standard current accounts for the first time. There are now 64 packaged current accounts available compared to 61 standard current accounts.

David Black, Banking Specialist at Defaqto said: "Consumers now have the widest choice of current accounts to select from. We've seen a big increase in the number of packaged current accounts available with many banks now offering a range of different account options with the monthly fee charged being based upon the level of benefits and incentives offered. Each year when we establish the criteria for our Star Ratings in this area, we see a change in trends in line with changing consumer needs which means consumers need to examine the level of benefits offered more closely to ensure they are choosing a product that's right for them."

Currently, the five most frequently offered benefits on packaged accounts are as follows:

58 (91%) offer commission free foreign currency and travellers' cheques
52 (81%) give travel insurance
51 (80%) offer preferential rates or deals for savings accounts
46 (72%) give mobile phone insurance
38 (59%) give motor breakdown assistance