Expert issues advice as UK bank introduces new £60 charge for people accessing accounts from today
An expert has issued advice to Brits after a UK bank upped its fee for people using their bank accounts.
When it comes to choosing who to bank with, there are plenty of options, with a variety of banks offering different rates, benefits, and even cash incentives to switch.
But from today (1 December), one of them has introduced a charge of an extra £60.
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The popular bank has revealed that one of its packaged accounts will increase from £13 a month to £18, which is an extra fiver you’ll have to fork out.
So, if you have a FlexPlus packaged account with Nationwide, it'll now cost a whopping £216 per year, as opposed to the previous £156.
However, the account isn't just any old current account. Nationwide's FlexPlus account provides you with insurance policies for you and your family, and this can include travel and mobile phone insurance, or even breakdown cover.
FlexPlus members also have better rates on loans and overdrafts.
Speaking of the change, a spokesperson told the Mirror: "We have held back raising the fee for FlexPlus since 2017. However, the rising cost of insurance means we now need to make changes, taking effect from December. Even after this change, FlexPlus will continue to be one of the UK’s most competitive packaged current accounts, both in price and quality of cover."
Following the change, one expert has issued advice to those with the account.
Sarah Coles, a personal finance expert at Hargreaves Lansdown, explained that the £5 increase means the account will no longer be ‘one of the cheapest’ on the market, but it could still offer value.
She said: "This is particularly the case for families who plan more than one holiday this year, have smartphones that need insurance, and who would otherwise buy car breakdown cover.
"If you want a lower monthly charge, you can get the Virgin Money M account which comes with similar cover. Just check you’re happy that you still get what you need."
Virgin Money's Club M account is priced at £12.50 per month and offers free gadget insurance, European breakdown insurance, and worldwide family travel insurance.
However, if you want to stick with the Nationwide FlexPlus account, you'll still be able to access worldwide travel insurance for trips up to 31 days, mobile phone insurance for the whole family, vehicle breakdown cover in both the UK and Europe, using your card while abroad, and £50 interest-free on an arranged overdraft.
Lucy Devine