MoneyMagpie

Feb 24

Banking with Luxurious Extras

Updated: 27/08/2014

Imagine a life of luxury: VIP lounges at the airport, a concierge service, and travel arrangements made for you… Sounds too good to be true? Well possibly, but we are going to show you banking with luxurious extras could make all this yours for a small price.

Before you think we have gone completely mad, we’ll explain. Current accounts and credit cards that you pay for have usually been considered to only be for the lucky and privileged few with a significant annual income, but not any more. Now there are a huge variety of accounts and cards available with added advantages, we at Moneymagpie thought we’d find out what’s on offer, and if they really are worthwhile.

Banking with luxurious extrasBasically these current accounts and credit cards work in the same way that they usually would, except that you pay for the privilege of having various extra benefits. There is a monthly charge and you are often required to sign up for at least 12 months. In much the same way as you choose a mobile phone contract, the key is to assess how much you have to pay each month against what benefits you receive, and to choose the account or credit card with the benefits that best suit your needs.

At this point, you’re probably questioning why on earth anyone would pay for a current account or a credit card when you can get them for free. Well, these kinds of accounts and cards are really only going to be worthwhile if you have a secure income, and if you would pay money for most of the extras you’ re going to get anyway.

There are some excellent benefits on offer, and since most people are likely to want things like worldwide travel insurance and RAC breakdown cover, it might well be worth your while getting them all for one monthly fee as it’s likely to be cheaper than paying for them all separately. Having said that, the benefits you are offered might not always be the best available; you could be able to get a better deal elsewhere. Have a look at a comparison site like Comparethemarket to work out your best options.

More importantly, everyone is different and you can’t have anything tailor-made to your needs. So if you would only use the travel insurance for instance and nothing else then have a look at our comparison service for the best insurance deals instead.

You should also be aware that these kinds of accounts and cards don’t always offer the most competitive rates, so it is a case of weighing up all the different aspects to see if you’re going to really benefit or not. See our best buys pages to find the best deals on credit cards and current accounts.

As you’ll see, there are a vast amount of different paid-for accounts with varying costs and benefits. There’s no real standard so it’s almost impossible to pick the best. Instead we’ve included a variety of different accounts to give you an idea of what’s out there, and chosen the best according to your interests.

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Best for those with a family

Banking with luxurious extrasHalifax ultimate reward current account

Cost: £15.00 a month

Benefits:

  • Worldwide family travel insurance
  • Car breakdown cover
  • Mobile cover
  • Cashback
  • £100 reward for switching

Best Value

Nationwide Flex account 

Cost: No monthly fee

Benefits: 

  • Free multi-trip travel insurance
  • Online banking and fraud support
  • Linked products
  • Overdraft facility

Banking with luxurious extrasSantander 123 Current account

Cost: £2 a month

Benefits: 

  • Cashback on your household bills
  • 1% cashback on your Santander Mortgage
  • Online banking
  • Overdraft facility

the moneymagpie current accounts comparison tool

Best for those who travel frequently

Nationwide Building Society FlexPlus

Cost: £10 per month

Benefits:

  • Worldwide family travel insurance
  • Worldwide  family mobile cover
  • EU breakdown cover
  • Commission free cash withdrawals abroad

Banking with luxurious extrasBritish Airways American Express Premium Plus Card

Cost: £150 a year (offer ends September 2014)

Rates: 56.4% APR typical (including annual fee)

Benefits:

  • 25,000 Avios when you spend £3,000 in the first three months on your card.
  • Collect 1.5 Avios for every £1 you spend
  • Collect 3 Avois for every £1 you spend with BA or BA holidays
  • Executive Club membership
  • Travel Accident Insurance benefit up to £250,000

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