The benefits of a premier bank account

When looking for a current account, you might be tempted by some banks' enhanced current accounts - broadly known as premier bank accounts. Premier bank accounts are fee paying, packaged accounts which offer a number of extras to account holders. If you are considering opening a bank account in the near future, what benefits does a premier bank account offer that aren't available with a conventional current account?

Premier bank accounts are aimed more towards banks' wealthier customers, as opposed to the average account holder. Premier account holders are charged a fee, and usually have to deposit a certain amount of money into the account each month to qualify for the account. In return, customers can expect a range of benefits as part of the enhanced account, while most premier accounts provide account holders with a 'relationship manager' to provide financial advice as and when required.

Some of the benefits of a premier bank account include an automatic interest and fee-free overdraft, with limits up to £1,000, although preferential rates may be available on larger amounts. Premier account holders who pay a cheque into their account can draw a portion of the funds immediately, rather than having to wait for the cheque to clear which, dependent on their bank can take up to eight business days for standard bank account holders. Other benefits include greater limits on the amount that can be withdrawn from an ATM, an enhanced cheque guarantee amount, travel insurance, breakdown cover and discounts on food, drink and travel.

While the range of benefits offered by premier bank accounts is likely to differ between banks, it's worth checking the range of extras each bank offers. For instance, if you already have travel insurance and accidental health cover policies, it may not be beneficial to consider a premier account which offers these services, as you might feel the monthly fee commanded by the account would not be worthwhile. Conversely, if you have thought about travel insurance in the past, it may be cost-effective to have this as part of your bank account, especially if it is included in the fee.

However, some critics believe the fees charged by some banks and the extras offered as part of the fee do not represent a true value if the actual cost of the benefits are taken into account; while the 'relationship manager' merely serves to make customers feel "special" and offers little financial benefit. Despite this, there were as many as eight million fee paying premier bank accounts at the beginning of 2006 according to market research firm Mintel, which suggests that many customers are happy to pay for enhanced banking services.

Paul McIndoe is a recent university graduate whose hobbies include water-skiing and rock climbing.

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