In this guide
Premium bank accounts usually come with a monthly fee in return for a range of benefits such as insurance or cashback. While pricey, used right, they could save you £100s.
Here’s how they work, whether they’re right for you plus our top picks.
In this article, we outline:
- What a premium bank account is
- How we compile our independent ratings
- Our top rated premium bank accounts
Read more: Five best current accounts
This article may contain affiliate links that can earn us revenue*
Open a NatWest Premier Select Account today
Open a NatWest Premier Select Account with no monthly account fee. Enjoy a range of benefits such as premier banking, arranged overdraft with £500 interest-free buffer available (subject to status), and no foreign transaction fees based on purchases abroad.
To qualify you must be 18 years old and a UK resident. Additionally, you must be eligible for one of the following:
- Earn at least £100,000 as a sole income into a NatWest account
- Earn at least £120,000 as a joint income into a NatWest account
- Borrow at least £500,000 through a mortgage with NatWest
- Hold at least £100,000 in savings or investments with NatWest
Representative Example: Effective Annual Rate 0% EAR on arranged overdrafts up to £500, 19.49% EAR (variable) above £500. Representative 11.4% APR (variable). Assumed credit limit: £1200. *ATM withdrawal charges apply, local fees may apply. How does our overdraft compare? Representative APRs help you compare the cost of different credit products
What is a premium bank account?
When we talk about premium bank accounts in this article, we’re referring to accounts that have a monthly fee and come with a range of benefits like insurance and cashback in their banking services.
These are different from Premier bank accounts – which are only available to a select few.
Most major banks offer a premium account – but working out whether it’s a good deal isn’t always straightforward. The good news is that Times Money Mentor has done the hard work for you.
Choosing the right account will however depend on your personal circumstances.
Most premium accounts offer benefits like travel insurance and breakdown cover as their banking services. But if you don’t have a car, then the value of breakdown cover to you is nothing at all.
Many accounts include discounts for specific shops, restaurants and subscriptions – but we don’t include these in our calculations, as it’s hard to model what the average spend of each customer will be in different places.
However, some of these benefits could be worth a lot to you if they provide discounts to places where you spend regularly.
Read more: Best savings accounts in 2023
Our top five premium bank accounts
Halifax Ultimate Reward Current Account
Highest value rewards
For just £17 a month, Halifax’s account includes mobile phone and home emergency cover as well as family worldwide travel insurance and UK breakdown cover, also for you and your family.
The value of its core rewards – less its annual fee, and the cost of some arranged overdraft usage and overseas card usage – comes in at over £370 a year.
You can also earn up to £5 a month cashback (or an equivalent reward) if you meet its minimum deposit and spending requirements.
Monthly fee: £17
Total rewards value (after fee): £373.18 a year
Nationwide FlexPlus
Best for customer experience
Nationwide is the UK’s largest building society – which is another reason to like it. Owned by its customers or account holders rather than private shareholders, it has a track record of putting customers first – and its packaged bank account is great value.
For £13 a month, Nationwide’s FlexPlus account includes worldwide travel insurance for the holder and family, breakdown cover in the UK and Europe and mobile phone insurance for all your family.
Meanwhile there are no fees to pay when you use your debit card overseas.
Monthly fee: £13
Total rewards value (after fee): £281.48 a year
Co-operative Bank Everyday Extra
Best for the ethically minded
Although it still bears the Co-op name, it’s no longer part of the Co-operative Group. Instead, it’s owned by a number of US hedge funds – but has an agreement which means it continues to adhere to the Co-op Group’s values each year.
Its premium account, Co-operative Bank Everyday Extra, costs £15 a month and includes a trio of family worldwide travel insurance, mobile phone insurance, and UK and European breakdown cover.
You will also get access to its everyday rewards scheme, which gives you up to £2.20 a month cashback.
Monthly fee: £15
Total rewards value (after fee): £272.31 a year
RBS Reward Platinum
Best for those who love eating out
Both accounts offer worldwide travel insurance for the account holder and their family, mobile phone insurance, and UK breakdown cover – as well as cinema discounts and a taste card – which gives you money off when you’re eating out or ordering takeaway.
The monthly fee is a hefty £20 a month – but you will more than that back if you make use of all the benefits.
Monthly fee: £20
Total rewards value (after fee): £199.89 a year
Virgin Money Club M
Best for regular travellers
Over the past 18 months, it’s been busy creating a suite of new products and making a play to upset the established big five.
Its Club M account, which costs £12.50 a month, was launched in 2021 and brings together premium benefits of worldwide travel insurance for the holder and family, gadget insurance for the holder and family, and UK breakdown cover.
Uniquely, it also offers access to a round the clock GP service – which you can use at home or abroad – as well as a concierge service that can help you buy tickets and more while you’re on the road.
There are also no fees for using your debit card abroad. It only misses out on a top rating because its fee for a banker’s draft is well above the industry average.
But it’s a great account and one to factor into your considerations of banking services – particularly if you’re a regular traveller overseas.
New customers can earn 25% cashback on supermarket and fuel spending within the 60 day qualifying period with this account, up to a maximum of £160.
Monthly fee: £12.50
Total rewards value (after fee): £297.50 a year
*All products, brands or properties mentioned in this article are selected by our writers and editors based on first-hand experience or customer feedback, and are of a standard that we believe our readers expect. This article contains links from which we can earn revenue. This revenue helps us to support the content of this website and to continue to invest in our award-winning journalism. For more, see How we make our money and Editorial promise
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
