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- Alliance & Leicester Premier Current Account

For many it makes for regulation Saturday night viewing, but boasting such a varied cast means X-Factor can make for nightmare television.

You may be a huge fan of Jamie Archer’s ‘rocking out’ as the judges describe it, but did you really sign up for to see Irish twins prancing around in red latex suits? Perhaps not eh?

Sadly, for the next few weeks at least, you’ll have little choice but to go for the whole package, taking the proverbial rough with the smooth.

A similar dilemma - and one without the bonus of Cheryl Cole thrown in - faces those looking for a packaged current account - the in-credit interest may be great, but you’ve already got mobile phone insurance and don’t drive, making breakdown cover completely redundant.

For those considering the new breed of current account, MoneyExpert.com offers some top tips.

What’s out there?

Traditionally, current accounts were simply designed as a means to house money that you needed to use on a day to day basis. They offered little in terms of in-credit interest - that was the role of a savings account – and they certainly didn’t attract customers with supplementary insurance products or perks.

There are a number of accounts, though, that will offer a ‘package’ of products in exchange for a monthly fee.

The accounts vary considerably in terms of the interest they pay and the products they offer, which range from travel insurance to There’s also a fair spread in terms of the fees they charge and calculating the annual cost of an account should be the first thing you do when considering a packaged account.

A better rate

The in-credit interest paid by package accounts is almost certainly the first thing you’ll notice when looking at the details. The Premier 50 Current Account from Alliance & Leicester and the Reward Bank Account from Abbey both pay 6% AER on accounts up to £2,500. When you compare that with the average rate on an instant access savings account it looks like a fantastic rate.

Both of those accounts, though, will charge you £10 a month. That means that even if you had an average of £2,000 in the account throughout the year, once you’d deducted the £120 you’d paid in fees you’d have made no money whatsoever.

And don’t forget the Alliance & Leicester Premier Current Account which currently pays £100 when switching,

Click here to apply

Why bother?

Clearly there’s more to packaged accounts than better rates of interest, and for those that can take advantage of the incentives there’s plenty on offer. The Premier 50 account from Alliance & Leicester offers worldwide travel insurance, access to private medical care, and identity theft insurance.

The key thing is to make sure you’re not doubling up on any cover. It’s all too easy to forget about the breakdown cover your current account offers and end up paying twice. You might even find that simply purchasing products such as travel insurance or car breakdown cover separately might be better value.

Click here to compare current accounts