Achieving financial freedom 

If you want to start afresh and get your bank account in order, the best way to do so is with a new current account that offers great rates and even some added bonuses. For the first time, the number of ‘packaged’ accounts has overtaken the number of standard accounts. 

Research by financial information group Defaqto shows that there are currently 64 different packaged accounts on offer, which is nearly double the amount in June 2006. All the while, the number of standard non-fee accounts dropped from 64 to 61.  

Many people are switching to these new packaged accounts because they believe they offer better value for money, even though you do have to pay a small monthly fee. Until recently, most accounts only charged people if they became overdrawn, but now accounts of charging customers but are including things such as travel insurance and breakdown cover in the bundle of added extras.  

According to Defaqto’s research, the most common perk offered on the accounts was commission-free foreign currency and travellers’ cheques with 91% including this benefit. 81% offer free travel insurance too. 80% include preferential rates on savings accounts, 72% include free mobile phone insurance and 59% provide breakdown assistance.  

The monthly fee is based on the number of benefits included, and although the average has risen from £10.51 in June 2006 to £14.29 in 2010, many consumers feel the benefits outweigh the cost. Overall choice of current accounts is now at its widest level so people can cherry-pick accounts based on the extras they want to receive. Or alternatively, stay put with a free account.  

Seven million people now use these packaged accounts. However, before you go down the fee-paying back account route, you need to choose one that offers benefits you will actually use. Many banks offer great introductory rates for new users anyway, so you may not need to pay to get these rates for the first 12 months or so. After which time you can switch to another account and jump around from one high-street bank to another.