Premier bank account (and extras) - worth it?

kingdoner

Around a year or so ago someone from my bank (Natwest) asked if I could go in and see her. Quite intrigued I went along and met a relationship manager. She had a sidekick with her. Between them they persuaded me that it was a great idea to start paying for an Advantage Private bank account (£19.95pm) as well as to start paying Aviva £38pm for sickness protection cover.

I've been merrily meandering along not really thinking about it but now I've decided to have a look at and sort out my finances, as ideally I would like to be debt free in 2-3 years (so I can go and live in New Zealand or Australia for a few years).

Now it seems that the Advantage Private account has been superseded by the advantage Black Account, and I no longer have a relationship manager which seemed to be one of the main perks (dealt with through call centre instead - not a complaint, think Natwest call centres are good in general), and it seems that all the benefits I use on this account are available on the cheaper Advantage Gold account (basically, mobile phone insurance, breakdown cover, travel insurance).

Basically I'm wondering what people's opinions are here. Are these accounts ever worth having and if so are any of the Natwest ones any good? And would anyone think it would be worthwhile continuing to pay sickness insurance? I'm 28, no medical conditions, relatively healthy. Can't help but think that £60 a month might be better paying back a loan or a credit card...

pmduk

Only you can answer this, the calculations are different for everyone. you need to calculate which of the benefits you would use and how much they would cost elsewhere if bought separately.

opinions4u

First of all, "relationship manager" = salesman. Don't get excited at the title, or the concept of having an assigned salesperson being a perk.

And would anyone think it would be worthwhile continuing to pay sickness insurance? I'm 28, no medical conditions, relatively healthy

As you get older, similar cover will get more expensive. As you get older, you are more likely to get ill. Look at what it covers you for. Decide if you want that cover or not. If you don't, cancel (understanding the risks if your legs fall off tomorrow). If you do want the cover, check out alternatives. Could you get similar cover for less elsewhere. This sort of cover is almost certainly nothing to do with your current account though. They sold you something. Is it right for you now, or not? Nobody on a forum can really answer your question.

Are these accounts ever worth having and if so are any of the Natwest ones any good

Most banks offer these accounts. They are all much of a muchness although price varies, Halifax do a £5 a month cashback, some have high excesses and some don't cover you if you breakdown at or close to home.

Are they worth having? Do the maths. Of all the so called benefits, cross out the ones that are "10% off insurance" or "£10k of free accidental death cover". With what's left over, cross out the ones you would never have normal bought such as card protection cover.

Then look at what's left over.

Breakdown cover - I just paid RAC £66 for a year with £40 commission rebated via www.topcashback.co.uk. Does the account cover you for breakdown on your own drive? Many don't.
Travel insurance - How much would this cost you on its own? How many times a year do you benefit from it? Does the upper limit cover your all inclusive family of 8 holiday to Mauritus, or is the cover excessive for your solo hike around the Highlands one weekend each summer?
Mobile Phone insurance - Personally I'd have already crossed this off the list. Others value it. Vodafone charge £12.95 for this alone. But many people will pay less than this for a contract with a free phone, so why insure it? iPhones have more expensive contracts, but is it worth paying a £100 excess on the insurance when your screen has cracked?

For some people, these accounts are great value. Others forget they have them and buy the cover elsewhere for a second time. Many have the account but don't use the benefits very often. So you need to establish the value for you.

What you pay for the account saves you the hassle of shopping around. Joint accounts may offer double value for one fee.

But you're the one who needs to do the sums and make the decision.

willo65

opinions4u wrote: »

As you get older, similar cover will get more expensive. As you get older, you are more likely to get ill. Look at what it covers you for. Decide if you want that cover or not. If you don't, cancel (understanding the risks if your legs fall off tomorrow). If you do want the cover, check out alternatives. Could you get similar cover for less elsewhere. This sort of cover is almost certainly nothing to do with your current account though. They sold you something. Is it right for you now, or not? Nobody on a forum can really answer your question.

Opinions makes some very good points, just to add to this I read an article last week which I think would be a worth while read for you:

http://www.thisismoney.co.uk/money/bills/article-2033262/Why-Inger-calls-NatWests-Sajid-guardian-angel--Cashiers-advice-helped-avoid-financial-disaster-illness-struck.html

As you can see this type of cover can get very expensive the older you are when you take it out and can prove to be invaluable. I would check if it covers you when living abroad and then it depends wether it would be worth continuing whilst abroad to keep the price down for your return.

Also to add some of the benefits with Natwest Black account:

Car Breakdown: The cover is for UK and Europe, covers roadside, home start and relay.

Mobile Phone Insurance: Covers upto 4 mobile phones in the household so if your partner/children have phones then they can also be covered.

Also the Home emergency cover may save you some money if you have this already.

Hope this helps
Willo