Halifax unveils Ultimate Reward current account

In an effort to break into the packaged current account market Halifax has unveiled its Ultimate Reward current account.

The bank claims its offering provides the best value available on a current account for £10 a month.

Packaged current accounts are where a suite of personal finance products are included along with a current account offering preferential rates to customers, however to get these added extras customers are generally charged a monthly fee.

Around one current account in eight is a packaged account - meaning there are around seven million in operation in the UK market.

"The 'big four' banks have had it too easy in packaged accounts for too long. Our new account changes all of that," said Paul Marriott-Clarke, head of banking for Halifax.

"We believe we are offering the best value packaged account. We are determined to win business from the big clearing banks and offer customers a better deal at the same time."

The Halifax Ultimate Reward account offers interest of at least five per cent on positive balances, a £250 interest-free overdraft, free travel insurance, roadside assistance, mobile phone insurance, card protection, and cash bonuses on mortgages and loans.

For these - and other included benefits - account holders are charged £10 a month.

However, industry experts have questioned whether this launch will be a success.

"To date not many customers have actively sought a packaged account because, in the main the benefits are superficial and are not worth the monthly fee," said Stuart Glendinning, managing director at comparison service Moneysupermarket.com.

"Halifax appears to be making a greater effort with its new Ultimate Reward current account with some worthy benefits such as worldwide family multi-trip travel insurance which includes ski cover, AA roadside recovery and 24 hour emergency home assistance.

"Moneysupermarket shopped around for the best rates on the internet for some of the core benefits and we found it hard to beat this level of services for the annual fee of £120 per annum that will be paid for the packaged account.

"However, many people will not want the services offered and consequently the packaged account will be of no interest. But for families with cars who holiday regularly and sometimes go skiing this looks like a good buy."

The Halifax Ultimate Reward current account becomes available in February from all Halifax branches, online and via the telephone.