Santander at one time offered a number of packaged bank accounts to it's customers, the Santander Family Reward Account included.
This fee-paying current account cost £15 per month which offered a range of benefits including the addition of a 2.5% in-credit interest. Other benefits included annual worldwide family travel insurance, gadget insurance, legal advice and card loss assistance to name a few.
However, in 2013 Santander reduced the number of their current accounts from 14 to two in a bid to simplify their accounts. All accounts were changed over to the fee-free Everyday Current Account.
What were the benefits of Santander Family Reward Account?
This account offered the following benefits:
- Worldwide family travel insurance - The accountholder, their partner and dependent children who reside at the same address, are covered under this policy for trips of up to 31 days.
- Gadget insurance - Items such as mobile phones, tablets, laptops and MP3s are covered under this policy for the account holder and their family members residing at the same address.
- Breakdown cover - Account holders are covered for both the roadside and at home. If repairs can’t be made at the roadside, towage to the nearest suitable repairer is also included.
What was the Santander Family Reward Account monthly Fee?
The account had a monthly fee of £15, regardless of whether the account was in credit or not.
How was Santander Family Reward Account mis-sold?
Like payment protection insurance (PPI), PBAs were often mis-sold by banks because the suitability of the product wasn't adequately assessed against the consumers’ needs and what the account offered was not properly explained to them.
When Santander sold customers a Packaged Bank Account, it was their responsibility to outline all the benefits to the customer to ensure that the decision to take out a PBA was right for them.
How could Santander have mis-sold you your Family Reward packaged bank account?
Many consumers did not want or realise they actually had a packaged bank account after the bank upgraded their account without telling them.
Before considering a packaged bank account, consumers should be made aware of alternative, free accounts that could also work for them.
Many consumers found that there were too many limitations on the policy that they would not have had if they had taken the insurance as a standalone policy. Additionally, consumers may have tried to make a claim on the policy only to find out that they were not covered.
Many consumers did not fully understand how much a packaged bank account was going to cost them per month.
If you are unlikely to use certain packaged bank account benefits, you could lose out. For example, if you don’t drive then breakdown insurance will not be suitable or applicable to your needs.
Please Note: Santander no longer sell the Family Reward Account.