Packaged accounts, as the name suggests, typically include a range of extras such as travel insurance and breakdown cover alongside all the usual features of a current account. Fees can range from as low as £2 a month to more than £30 a month, so can really mount up over a year, but as long as you take advantage of all the perks on offer, they can be good value for money.

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Some providers, such as The Co-operative Bank, are increasing their packaged account fees this summer, so it’s vital to make sure that you aren’t paying for benefits you don’t use. The fee on Co-op’s Everyday Extra account will increase from £15 to £18 on July 1. The account comes with mobile phone insurance, worldwide travel insurance, and UK and European breakdown cover. The fee increase comes just a few months after Nationwide Building Society’s FlexPlus packaged account fee hike last December, which saw the monthly cost jump from £13 to £18.

Lloyds Bank is upping the monthly fee on its Club Lloyds account from £3 to £5 with effect from June 2. However, the fee is waived if you pay £2,000 or more into your account each month. Rather than coming with travel insurance or breakdown cover, this account allows you to choose a ‘lifestyle benefit’ each year, with options ranging from a 12-month Disney+ subscription, 6 cinema tickets, an annual digital Coffee Club and Gourmet Society membership, or an annual magazine subscription.

The Club Lloyds account has no debit card fees when you use it abroad, pays credit interest as long as you pay out two direct debits each month, and gives you access to exclusive savings rates and mortgage offers.

Whichever bank account you have, if you’re not happy with it, or you aren’t making full use of the benefits it comes with, you might want to consider moving to an alternative provider, especially as some banks offer generous cash incentives to those who switch.

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Alastair Douglas, chief executive at TotallyMoney, said: “Loyalty doesn’t pay, but switching banks can. So, if you're looking to bag a bonus now, First Direct is offering £175, and NatWest £150 — but you will have to tick a few boxes before they hand over the cash. So read the small print before jumping in, and have a think about the bigger picture. Access to a physical branch might be important to you, or you might benefit most from an interest free overdraft or zero fees for foreign spending.

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“Just don’t be put off, because switching is easy, and data shows that 9 in 10 people are happy with the process. That’s because the Current Account Switch Service will automatically transfer Direct Debits and regular income to your new provider within seven days.”

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