# Are premium bank accounts worth the monthly fee? > Banking & current accounts · Last updated 23 June 2026 Canonical HTML: https://moneyguide.org.uk/banking/premium-bank-accounts-worth-it/ Markdown mirror: https://moneyguide.org.uk/banking/premium-bank-accounts-worth-it.md ## Quick answer A premium bank account only makes sense if you would genuinely use the bundled insurance and perks — travel cover, breakdown cover, phone insurance — and those benefits exceed the monthly fee. Otherwise a free current account plus standalone policies is usually cheaper. Premium or 'packaged' bank accounts charge a monthly fee — typically £10 to £25 — in exchange for bundled benefits such as travel insurance, mobile phone cover and airport lounge access. Banks market them as convenient all-in-one packages, but the maths only works if you actually need and use what is included. ## Key facts - Monthly fees typically range from £10 to £25 depending on the bank and tier - Travel insurance age limits often exclude older travellers — check the policy wording carefully - Phone insurance may require you to register devices and pay an excess on claims - FCA rules require banks to check annually that your account still suits your needs ## What premium accounts typically include Common bundles include worldwide travel insurance, UK and European breakdown cover, mobile phone insurance, preferential savings rates, and fee-free overseas spending. Higher tiers may add airport lounge access, concierge services, and higher interest-free overdraft buffers. ## Doing the value calculation Add up what you would pay for each benefit separately. A standalone annual travel policy might cost £50–£150; breakdown cover £60–£100; phone insurance £80–£150. If the total exceeds the annual account fee, the package may save money. If you already have these policies through work, a partner's account, or existing insurers, the bundled versions add no value. ## Watch the fine print Travel insurance on packaged accounts often has age caps — commonly 70 or 80 — and may exclude certain activities or pre-existing conditions unless declared. If you were mis-sold a packaged account — sold benefits you could not use — you can complain to the bank and escalate to the Financial Ombudsman Service. ## Frequently asked questions ### Can I cancel a premium account mid-month? Yes. You can usually downgrade to a free account at any time. Some banks refund the monthly fee if you cancel within 14 days of opening. ### Does premium account travel insurance cover my family? Most policies cover you and sometimes your partner and children when travelling together. Check whether adult children or grandchildren are included. ### Are premium accounts worth it for students? Rarely. Students typically do not need worldwide travel insurance bundles or breakdown cover, and the monthly fee is hard to justify on a limited budget. ## Primary source https://www.gov.uk/consumer-protection-rights/packaged-bank-accounts ## Related - [Best current accounts](https://moneyguide.org.uk/banking/best-current-accounts-explained/) - [Travel insurance essentials](https://moneyguide.org.uk/insurance/travel-insurance-essentials/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.