Choosing who to bank with isn’t something that a lot of common folks put a lot of thought into, but they might start looking a little closer now that a popular bank has enforced a charge to access accounts.
From today, you might be having to pay and extra £60 to check up on your balance, which is a little steep, no?
The UK building society has revealed that one of its popular packaged accounts will increase from £13 a month to £18, which is a fiver extra you’ll have to fork out, or £156 a year more than you’re already paying.
This is apparently all down to one reason: insurance.
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Nationwide is the popular bank that is hiking the price of its FlexPlus packaged account, and it’ll now come at a whopping £216 per year charge.
However, if you’ve not got this account, you might think that it’s a bog standard set-up.
It’s not.
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.
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Members with this account are also privvy to preferential rates on loans or overdrafts, making it a great option for those who want a lot more out of their accounts.
This increase comes as the first since 2017, with a spokesperson telling 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."
I mean, they did recently give customers a free 100 quid…so they’re giving back the cash in some aspects.
But as it’s increasing, is it still worth the money?
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According to Sarah Coles, a personal finance expert at Hargreaves Lansdown, it might not be.
She told the outlet that the £5 increase means the account will no longer be ‘one of the cheapest’ on the market, but it could still offer value, depending on what you’re using it for.
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."
Nationwide will need to watch out though, as its competitor Virgin Money has a cheaper option for the Club M account packaged account, which stands at £12.50 per month.
This account offers a free gadget insurance, European breakdown insurance, worldwide family travel insurance, and more.
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Coles added: "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."
I’d hold off on Virgin Money before you decided to make the switch, as the Money Saving Expert website says there’s a pretty major downside when it comes to choosing this package.
It’s the customer service.
In its latest poll, Nationwide got 87 per cent 'great' votes, compared to Virgin's 37 per cent 'great' votes.
So, if you care about those things, it might be better to stick to Nationwide.
Britt Jones