Are Premium Bank Accounts Worth Paying For?

Banks often advertise premium accounts that come with a monthly fee in exchange for extra perks. This could be travel insurance, breakdown cover, or cashback rewards. But are they really worth it, or just another way for banks to earn more money from you?

What do premium bank accounts offer?

Typical benefits might include:

• Travel insurance.

• Mobile phone or gadget insurance.

• Breakdown cover.

• Cashback on direct debits or card spending.

• Access to exclusive savings rates or loans.

On the surface, these can sound like a good deal. But the real question is: will you use them? And are they worth what you’re paying?

When premium accounts make sense

• You already pay separately for the perks: If you’re paying for travel insurance and mobile phone insurance individually, bundling them into a £15–£20 monthly bank fee could actually save you money.

• You’re a frequent traveller: If you go abroad multiple times a year, built-in travel insurance could be a big win.

• You want convenience: Having everything under one account means less admin compared to juggling multiple providers.

When they’re not worth it

• You don’t use the perks: Paying £15+ a month for insurance you never claim is wasted money.

• The cover isn’t suitable: Always check the terms — for example, some travel insurance may exclude winter sports or only cover up to a certain age.

• Free accounts meet your needs: If you just need an account for bills, savings, and day-to-day spending, a standard free account is usually more than enough.

The premium account I have

I pay for Monzo Perks at £7 a month and the freebies alone pay for itself. Every week you can get a free Greggs treat (sausage roll, muffin or hot drink), then every month you get a free cinema ticket at Vue including 10% off any food and drinks. Then annually you get a free railcard, and Uber One membership. I pay for my railcard, and love going to the cinema so those two things alone were worth it.

But you also get banking perks, the main ones I use/ love are:

• 3.75% AER interest on Instant Access Savings.
• You can connect your other bank accounts to see everything in one space.
• Credit insights and your score across TransUnion, Equifax and Experian.
• Virtual cards which are great for paying directly from pots, and enhancing security.
• Custom categories to help manage your money better.

Are premium bank accounts worth it?

Premium bank accounts can be worth it — but only if the perks line up with your lifestyle and genuinely save you money. For many people, a free account plus tailored insurance products works out cheaper in the long run.

Have you ever paid for a premium bank account? Did you find the perks worth the monthly cost?