Packaged current accounts receive somewhat mixed publicity so it is worth spending some time examining what is actually on offer before deciding whether or not to open one. There is a choice of 69 packaged current accounts available in the UK, and many of the High Street banks offer a range of accounts from entry level through to premium accounts. The monthly fees charged for them vary from £6.50 up to as much as £40, although the typical account charges about £15 per month.
In exchange for this monthly fee they offer various benefits. The typical high-value incentives are travel insurance, motor breakdown assistance and mobile phone insurance. They also offer a number of other incentives, such as card protection, discounts on other banking products, identity theft assistance, and, at the premium end, airport lounge access and a concierge service.

Suitability The Financial Services Authority (FSA) is currently in a consultation period looking at the insurance-based incentives offered by packaged current accounts. Its proposals are aimed at ensuring customers are aware of whether the insurance offered is suitable for their circumstances. These proposals, if implemented, should see that the insurance-related elements offered by....Read more here--: BBC News - Packaged accounts: How paid-for current accounts work