Package deals with annual statements

BANK customers taking out packaged accounts are to receive annual statements outlining their suitability for the products, under new rules drawn up by the City regulator.

The accounts, which charge a fee in return for perks such as insurance and enhanced savings or overdraft terms, have been the subject of a Financial Services Authority probe in recent months amid concerns of mis-selling and mis-buying.

A fifth of UK adults hold a packaged bank account, but research by Which? found that three in ten don’t use the benefits for which they are paying.

The regulator has now decided for forge ahead with plans to make banks provide customers with an annual eligibility statement, including details of the insurance cover bought as part of the accounts.

The new rules will come into force in March.