You might wonder why anyone would ever consider paying for a bank account when there are so many free bank account options available. While the idea of a paid for current account sounds strange to many people, the truth is that there are many benefits that these fee-charging accounts offer that the free accounts do not.
For those who can afford them, there are many reasons to choose a bank account that charges a monthly fee. Here is a look at six of the top benefits they offer.
1. Free Insurance
One of the best benefits that many fee-charging current accounts offer is various forms of insurance. One of the most popular of these is travel insurance. Usually this travel insurance will cover travelers for trips anywhere in Europe.
Another popular form of free insurance is mobile phone insurance. If you lose or break your mobile phone, you will be able to use this insurance to replace it at no cost other than a small deductible.
2. Money Management Advice
Most fee-charging accounts that banks offer will provide free money management advice to account holders. The banks will provide an advisor who the account holder can speak with whenever they are looking for financial advice on any number of issues that concern them.
3. Higher Interest Rates
This is one of the most lucrative benefits offered by fee-charging accounts. Because the interest rates are so low these days, it is important to look for ways to get a higher interest rate wherever you can find them. Paying a small monthly fee for your bank account is a smart thing to do if you can get a substantially higher interest rate. This is especially true if you have a large amount of cash in your savings account.
4. Identity Theft Insurance
If you have your identity stolen, it could end up costing you thousands of pounds. One of the best ways to protect against this is by paying the small monthly fee for one of these fee-charging accounts. The vast majority of fee-charging accounts provide identity theft insurance that will keep you from losing any money if your identity is stolen.
5. Low Interest Rate Credit Cards
Most fee-charging bank accounts offer account holders the option to get a credit card with the account. This credit card will typically offer a lower than standard interest rate that makes it financial tool to have.
6. Cash Back
Many of these fee-charging accounts offer cash back to customers when they use their debit cards to make purchases. Though the cash back amount is small, typically in the range of one or two per cent, it can really add up for those who use their debit cards on a regular basis. The cash back alone will often pay for the monthly fee of the account.