Banking customers should think twice before shelling out a monthly fee for packaged current accounts, Abbey has warned.
The bank says that these accounts, like the Barclays Additions Plus and the Lloyds TSB Gold Service current account, could cost banking customers more than what they could save.
Research by Abbey found that one in five banking customers pay extra for additional services, with ten per cent paying up to £120 in fees every year.
Of these, only half feel that the savings they made were worth paying extra for. Abbey found that only one per cent of banking customers actually use the extra services like leisure break discounts and will writing services.
Abbey says those paying over £100 in extra charges a year are likely to have current accounts that pay low savings interest rates.
It advises those current account holders who are receiving low savings interest rates to consider switching to a fee-free current account that pays a fixed savings interest rate that is competitive.
The range of services on offer at Abbey includes mortgages and savings, bank accounts, loans and credit cards, long-term investments including pensions and unit trusts, life, critical illness and unemployment cover and household insurance. It also provides offshore banking for expatriates.
Abbey is the UK's sixth largest bank by assets and the second largest provider of mortgages and savings in the UK.
Reconsider current accounts, says Abbey
Financial Services > e-banking > Banking news
Reconsider current accounts, says Abbey
Tue, 17 Jan 2006
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