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Banking with Luxurious Extras
 You don't have to live like this to get luxurious extras
Imagine a life of luxury; VIP lounges at the airport, a concierge service, and travel arrangements made for you… Sounds too good to be true? Well possibly, but we are going to show you how all this could be yours for less than £300 a year. Before you think we have gone completely mad, we’ll explain. Current accounts and credit cards that you pay for have usually been considered to only be for the lucky and privileged few with a significant annual income, but not anymore. Now there are a huge variety of accounts and cards available with added advantages, we at Moneymagpie thought we would find out what’s on offer, and if they really are worthwhile.
How does it work?Basically these current accounts and credit cards work in the same way that they usually would, except that you pay for the privilege of having various extra benefits. There is a monthly charge and you are often required to sign up for at least 12 months. In much the same way as you choose a mobile phone contract, the key is to assess how much you have to pay each month against what benefits you receive, and to choose the account or credit card with the benefits that best suit your needs.
Is it really worth it?At this point, you’re probably questioning why on earth anyone would pay for a current account or a credit card when you can get them for free. Well, these kinds of accounts and cards are really only going to be worthwhile if you have a secure income, and if you would pay money for most of the extras you' re going to get anyway. There are some excellent benefits on offer, and since most people are likely to want things like worldwide travel insurance and RAC breakdown cover, it might well be worth your while getting them all for one monthly fee as it’s likely to be cheaper than paying for them all separately. Having said that, the benefits you are offered might not always be the best available; you could be able to get a better deal elsewhere. Have a look at comparison sites like Comparethemarket and MoneySupermarket to work out your best options. More importantly, everyone is different and you can't have anything tailor-made to your needs. So if you would only use the travel insurance for instance and nothing else then have a look at our comparison service for the best insurance deals instead. You should also be aware that these kinds of accounts and cards don’t always offer the most competitive rates, so it is a case of weighing up all the different aspects to see if you’re going to really benefit or not. See our best buys pages to find the best deals on credit cards and current accounts.
What you get for your money: current accountsAs you'll see, there are a vast amount of different paid-for accounts with varying costs and benefits. There's no real standard so it's almost impossible to pick the best. Instead we've included a variety of different accounts to give you an idea of what's out there, and chosen the best according to your interests.
Best for those with a familyHalifax Ultimate Reward Current Account Cost: £12.50 a month; £150 a year Interest rate: 5.12% AER on balances up to and including £2,500 Overdraft: Interest free up to £300 Benefits:
Best ValueLloyds TSB Value Added Account - Silver Cost: £2 per month for the first three months and then £7.95 thereafter; £77.55 a year Interest Rate: 4% AER Overdraft: No interest free offer Benefits:
Cost: £12.95; £155.40 a year Interest Rate: 8% AER on balances up to and including £1,000 Overdraft: Interest free for the first 2 months Benefits:
Best for higher earners and those who travel frequentlyCost: £17.50 a month if you meet the eligibility requirements, £25 a month if not; £210 a year or £300 a year respectively. Interest Rate: 3.29% APR Overdraft: Interest free up to £1000 Benefits:
Lloyds TSB Value Added Account - Platinum Cost: £10 a month for the first three months and then £17 thereafter; £183 a year Interest Rate: 4% AER Overdraft: Interest-free planned overdraft Benefits:
Best for the Over-50sAlliance & Leicester Premier 50 Cost: £10 a month; £120 a year Interest Rate: 8.5% AER on balances up to £2,500 Overdraft: Interest free for 12 months Benefits:
Fully comprehensive vehicle breakdown cover can be as much as £170 a year, whilst annual worldwide multi-trip travel insurance for a family of four can be upwards of about £40 a year. So if you really do spend money on these things already, you can easily see how one of these accounts might be worth your while.
What you get for your money: credit cardsIt's fairly safe to say that paid-for credit cards are still only really for the higher earners among us, but if you can afford them, they offer some pretty impressive benefits. However, if like most of us, you glance over the list and wonder if you could ever afford to pay for all those glamorous extras, never fear. There are loads of credit cards out there which don’t charge an annual fee, and still provide you with some extras. They might allow you to collect some kind of reward points; airmiles or nectar points for instance. If this sounds more your kind of thing, check out our comparison pages for credit cards or have a look at the Lloyds TSB Airmiles Duo Card, American Express PlatinumMoneyBack card and BarclayCard Platinum Cashback card. So just for the high earners and dreamers amongst you...
Best for those with a familyCost: £250 a year Rates: 51.8% APR typical, 13.15% APR p.a. on purchases and balance transfers Benefits:
Best for those who travel frequentlyBritish Airways American Express Premium Plus Card Cost: £150 a year Rates: 43.5% APR typical, 17.9% APR p.a. on purchases and balance transfers Benefits:
American Express Platinum Charge Card Cost: £300 a year Benefits:
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Joanna Robinson
Moneymagpie Moneypedia
01.09.2008
