What is a PBA?

What is a PBA?

What is a packaged bank account?

A packaged bank account is essentially a current account which has bolt-ons like insurance and better overdraft and loan rates.

They come with a monthly fee, so you need to check whether the perks on offer outweigh this cost as you can get many of the same benefits with fee-free accounts.

It’s also crucial that you read the small print before you sign up as there are a load of exclusions that can catch you out, such as age limits on insurance.

Also, check that you’re not doubling up with another policy you've already bought elsewhere, or receive through your company.

We’d recommend checking the price of insurance now to see if you’d be better off getting a free bank account and buying the insurance separately.

What is good about the package bank accounts?

Packaged accounts can be very useful, where clients have gone into the sales process with eyes open and fully understanding the benefits, limitations and costs for their own individual circumstances.

The bank must provide a full and detailed explanation of the account, reflecting on the client's position, when the package account is taken out.

What is bad about the package bank accounts?

Banks have become greedy where many bank clients sign up to the account believing they have no choice. Or in the mistaken belief that the benefits will suit them without having exclusions detailed or establishing if the account benefits are already enjoyed by the client elsewhere.

The accounts themselves have lovely appealing names making a client feel nice and important and aiding the bank in the sales process with names like Premier, Reward, Gold, Silver. Fees per month can range from about £3 through to £25, so can be costly when annualised.

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Claims Advice Bureau (UK) Limited are Authorised and Regulated by the Financial Conduct Authority FRN: 837876, Regulation recorded at www.register.fca.org.uk.