Martin Lewis has highlighted the best packaged bank account for those looking to earn a switching bonus and save on insurance costs. In a recent episode of his BBC Sounds podcast, the Money Saving Expert founder discussed accounts that pay customers to switch, with Santander, Nationwide, and Co-operative Bank offering between £175 and £200.
Lewis explained that packaged bank accounts charge a monthly fee—typically between £12.50 and £20—in exchange for benefits such as travel insurance, mobile phone cover, and breakdown cover. He noted that for households paying separately for these insurances, switching could save hundreds of pounds a year.
The Santander Edge Explorer account was named the top all-rounder. It costs £17 per month but includes a £200 switching bonus and a £25 voucher, effectively covering the first 11 months of fees. The account provides annual worldwide family travel insurance, mobile phone cover for all household members, and UK and European breakdown cover for the account holder.
To qualify for the bonus, customers must pay in at least £1,500, switch two or more Direct Debits, and either switch from a non-Santander account or make five debit card payments within 30 days. Lewis advised that while these accounts can be valuable, users should ensure they will fully utilise the benefits to justify the monthly fee.
