Nationwide Building Society customers are set to fork out a hefty £216 a year for the use of one of its popular current accounts when a new fee rise comes into effect.
The FlexPlus current account boasts a range of perks, such as worldwide travel insurance and phone insurance, as well as breakdown cover and fee-free spending abroad.
It currently comes with a fee of £13 a month, or £156 a year.
However, from December 1, this fee will rise by £5, bringing the cost of the account up to £18 per month, or £216 a year.
According to Nationwide, some of the account perks are contributing to the higher costs. A spokesperson previously told The Sun that rising insurance costs were the reasons behind the fee increase.
However, it maintained that customers are still offered a “competitive” deal based on price and quality of insurance cover.
According to an analysis by Money Saving Expert (MSE), the building society’s main competitor is Virgin Money’s Club M account.
It offers similar cover, such as worldwide travel insurance, UK and Europe breakdown cover and mobile phone insurance, for a cheaper price of £12.50 a month.
However, MSE suggested customers carefully evaluate whether a packaged current account is necessary, as they might not be fully benefiting from the features offered.
The team advised people reassess their insurance needs. If a phone is less valuable or they’re travelling less, people might not need the coverage.
It also suggested comparing standalone policies for essentials like breakdown and travel insurance to see if they cost less than the current account’s annual fee.