Holders of packaged current accounts offered by the Big Four banks are wasting almost £1 billion a year in fees.
This is the cautionary message given by Alliance & Leicester, which asserts that the tempting benefits offered by packaged accounts, where customers pay a monthly fee for perks such as travel insurance and product discounts, may actually be available for free elsewhere.
According to the building society, an estimated 7.7 million customers are paying as much as £180 a year to hold packaged accounts with the Big Four banks, amounting to £970 million in total in unnecessary fees.
They are unnecessary because accounts such as Alliance & Leicester's Premier Plus account offer 'extras' such as travel insurance at no extra charge.
"Figures show that the packaged account market continues to grow year-on-year, but our research highlights how customers are paying their hard-earned money for benefits they can get free with Alliance & Leicester's Premier Plus account," explained Simon Ripton, current accounts manager at Alliance & Leicester. Click here to find the best current accounts around.
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