Co-op Bank Slashes Foreign Fees, Outperforms Chase and Monzo with Perks Account

Co-op Bank Reduces Fees on Deemed Account

Co-op Bank has made significant changes to its financial offerings, removing a 2.75 per cent transaction fee on overseas debit card payments and lowering the monthly cost of its Everyday Extra account from £19 to £12. This account is designed for customers seeking comprehensive coverage with added benefits.

The Everyday Extra account provides worldwide family travel insurance, mobile phone protection, and UK and European breakdown cover. These features make it an attractive option for those planning international trips or looking for added security in their banking experience.

When compared to other similar accounts, Co-op Bank's deal stands out as competitive. For instance, Chase charges £12.50 per month for its Protect account, while Monzo's Max account costs £17 a month. High-street banks typically offer more expensive options, with Nationwide charging £18 for its FlexPlus current account and NatWest levying a £22 monthly fee for its Platinum rewards account.

Evaluating the Value of Packaged Accounts

Kate Steere, a banking expert at Finder, highlights that while packaged accounts can be beneficial, it's crucial to examine the details closely. She notes that Co-op Bank’s Everyday Extra account offers excellent value at just £12 a month, undercutting major competitors like Chase Protect (£12.50) and Monzo Max (£17).

Key features include extensive worldwide travel insurance that covers partners and children under 22 when they travel independently. Additionally, the account includes comprehensive RAC breakdown cover with onward travel and a courtesy car. However, it's important to note that your spouse or partner is only covered under the travel insurance when they are traveling with you.

In terms of value, bank accounts that provide rewards and extras for a fee can be worthwhile if they save money on bundled products and offer convenience. Many of these accounts provide essential protections such as travel insurance and breakdown cover, which can be particularly useful for frequent travelers.

However, it's essential to compare the exact coverage offered by each account to avoid any surprises. For example, Co-op Bank's travel insurance does not cover your partner for independent travel, but other options like Nationwide's FlexPlus account do include this feature.

Comparing Packaged Bank Accounts

Here is a selection of packaged bank accounts from newer app-based challenger banks as well as established high-street names:

• Co-op Everyday Extra
• Monthly fee: £12
• Non-sterling transactions: No fee
• Travel insurance: Worldwide (family): Partner covered only when traveling with you; children under 22 covered when traveling alone
• Mobile phone insurance: Worldwide (you only): Up to £1,500 if lost, stolen, or damaged

• Breakdown cover: UK and Europe (RAC)

• Chase Protect

• Monthly fee: £12.50
• Non-sterling transactions: No fee
• Travel insurance: Worldwide (family): Partner covered traveling alone; dependent children must travel with you
• Mobile phone insurance: Worldwide (family): Up to £2,000 per claim for repair/replacement

• Breakdown cover: UK only (AA)

• Monzo Max

• Monthly fee: £17
• Non-sterling transactions: No fee
• Travel insurance: Worldwide (you only): Can add family for £5 extra a month
• Mobile phone insurance: Worldwide (you only): For phones worth up to £2,000

• Breakdown cover: UK and Europe (RAC)

• Nationwide FlexPlus

• Monthly fee: £18
• Non-sterling transactions: No fee
• Travel insurance: Worldwide (family): Both on trips alone and together
• Mobile phone insurance: Worldwide (family): For phones worth up to £2,000

• Breakdown cover: UK and Europe (AA)

• NatWest Reward Platinum

• Monthly fee: £22
• Non-sterling transactions: No fee on debit card; 2.75% charge on cash withdrawals
• Travel insurance: Worldwide (family): Both on trips alone and together
• Mobile phone insurance: Worldwide (you only): No maximum value specified
• Breakdown cover: UK only (AA)

It is important to review the details of each account carefully before making a decision. Factors such as excess for each type of policy should be considered, as this is the set amount you need to pay before a claim is processed. For mobile phone cover, this is often between £50 and £100.

For more information, explore our regularly updated guide on the best everyday current accounts. If you're interested in savings accounts, check out our pick of five of the best cash ISAs. Co-op Bank is owned by Coventry Building Society, following the brand's acquisition earlier last year.