Incentives on added value bank accounts vary wildly and should be considered carefully before signing up to a deal, according to new research.
Paid-for banking is being marketed heavily, according to financial analyst Defaqto, with a variety of free gifts available to customers – anything from travel insurance to a free young-persons railcard or fraud protection.
But, in its new report Current Accounts – All change, Defaqto claimed banks fees on paid-for accounts range from £3 up to £25 and customers should check that they cannot get the free-gift cheaper from elsewhere.
David Black, principal consultant of banking for Defaqto and author of the report, said: "For the consumer the main decision on whether to transfer to a paid for account should be based on whether they actually want the incentives offered."
"Incentives offered by added value current accounts varies considerably," he added.
Last month HSBC announced the end of interest for customers taking out a fee-free account with the bank, according to the Sun.
