The Co-operative Bank has announced a 33% reduction in its Everyday Extra packaged bank account fees and removed foreign transaction fees across its entire range of current accounts. It means that, from 29th June, customers will pay just £12 per month, down from the usual £18. It reduces the annual account cost from £216 to £144, a saving of £72 per year.
The Head of Family and Everyday Banking at The Co-operative Bank, Kat Robinson said: “Summer can be one of the most expensive times of year for families, whether it’s keeping everyone entertained at home or holidays abroad, and those costs can quickly add up. That’s why we’re removing foreign transaction fees, making it simpler and more affordable for our customers to spend overseas - whether that’s on family holidays, city breaks or everyday purchases while away - helping them keep more of their money while they enjoy their time abroad.
Alongside this, we’ve made our Everyday Extra one of the best-value packaged accounts on the market, offering added peace of mind with travel insurance, breakdown cover and extended mobile phone protection for the whole family.”
In this article, we explain what the Everyday Extra account includes and how to decide whether a packaged bank account is the right choice for your finances.
What does the Everyday Extra account include?
The Everyday Extra account is a packaged bank account, which means customers pay a monthly fee in exchange for a range of insurance policies and benefits. The account is also available as a joint account, meaning both account holders are covered independently for the same £12 monthly fee. We provide more details about the benefits of the Everyday Extra account below.
Insurance policies
- Worldwide family travel insurance (with zero excess) - This covers the account holder and their family for holidays abroad and in the UK, including winter sports. Additionally, there is no excess to pay, which is highly unusual for packaged bank account policies. For example, Nationwide (FlexPlus) is £50 per person, per claim and Lloyds Bank Platinum is £75 per adult, per incident.
- UK and European breakdown cover - This offers 'Roadside assistance and recovery' as well as 'Homestart' and covers the account holder in any car they are travelling in. The cover also includes electric vehicles.
- Mobile phone insurance - This covers up to £1,500 for loss, theft, accidental damage, and breakdown for every mobile phone and SIM in the household. Excess is £75 per claim and you are limited to a maximum of two successful claims in any 12-month period per account holder.
Zero fees on overseas debit card spending
Alongside the reduction in the packaged account fee, The Co-operative Bank has scrapped foreign transaction fees across all of its current accounts.
Previously, customers using their debit card abroad were charged a 2.75% transaction fee. Now, whether you hold a standard Current Account, a Cashminder account, or the Everyday Extra account, you can use your debit card overseas without paying a currency conversion fee.
This applies whether you are making purchases in local currencies (such as paying for a meal or shopping) or withdrawing cash abroad from VISA or Plus ATMs. It also applies to Bureau de Changes and Banks with the VISA sign. Be aware, however, that some cash machines will charge you a fee to withdraw cash and some overseas retailers may apply their own fees.
TOP TIP – If you are using a card to settle bills when abroad, you will often be asked whether you want to pay in local currency or in pounds sterling. You should always choose the local currency otherwise the retailer can apply what is known as Dynamic Currency Conversion, which is likely to have a higher exchange rate than your card issuer, and so the cost to you will be greater, with the retailer pocketing the difference.
Is the Co-op Everyday Extra account right for you?
Packaged bank accounts can offer excellent value, but they are not suitable for everyone. Before signing up or upgrading to an account with a monthly fee, it is important to check whether the benefits genuinely save you money.
Here are a few steps to help you decide:
- Calculate the standalone cost - Check how much it would cost to buy the travel insurance, breakdown cover, and mobile phone insurance separately. If the total is more than the £144 annual cost of the Everyday Extra account, the packaged account could save you money.
- Check for overlapping cover - Ensure you are not already paying for similar insurance elsewhere. For example, you might already have breakdown cover included with your car insurance, or you may already have travel insurance through your partner's bank account.
- Read the exclusions: Insurance policies that come with a packaged bank account may have specific limitations. Check the maximum age limit on the travel insurance and ensure that any pre-existing medical conditions are covered. You should also verify that the breakdown cover meets your specific driving needs.
For those who regularly use the included benefits, the newly reduced £12 fee makes the Everyday Extra account one of the best value packaged bank accounts on the market. For alternative packaged bank accounts, read our round-up of the best packaged bank accounts in the UK.
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