BOSS: Spot the Fees
Lesson 14 of 14 in our free Banking & Payments guide: a 5-minute money game with the key points below.
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Questions you'll answer
That £18.99/month packaged account — how much over a year?
Final question: Ronnie calls 'from your bank' saying your account is under attack and you must move your money now. What do you do?
Quick facts
- Red flag: “Just £18.99 a month for bundled phone and travel insurance” — A monthly fee for the perks. Only worth it if you need that cover, qualify for it, and it would cost more bought separately.
- Red flag: “Car breakdown cover included” — No car? Then you're paying for a perk you'll never use.
- Red flag: “Fee-free spending abroad*” — *Except a hidden markup on the exchange rate. 'No fee' isn't 'no cost'.
- Red flag: “Instant £2,000 overdraft at a competitive 49.9% EAR” — Very expensive borrowing dressed up as a perk.
- Your bank goes bust with £2,000 of your savings in it → FSCS. FSCS covers up to £120,000 per person, per authorised firm.
- A £500 sofa paid on credit card never arrives → Section 75. Section 75 covers credit card purchases over £100, up to £30,000.
- A gym takes £80 instead of £20 by mistake → Direct Debit Guarantee. Your bank refunds direct debit errors immediately.
- A £150 flight on credit card gets cancelled and the firm goes bust → Section 75. Section 75 again — credit card, over £100.
- Myth: “Paying in pounds abroad is usually the cheaper option.” — Usually local currency is cheaper — dynamic currency conversion tends to use a worse rate.
- Myth: “A standing order updates itself when your rent changes.” — You must update it yourself. Direct debits are the ones companies adjust (with notice).
- Fact: “You can reach your bank safely by calling 159.” — A trusted number for checking suspicious calls.
- Myth: “Packaged bank accounts are always a rip-off.” — They're legitimate products. They're worth it only if you'd use the perks, qualify for the cover, and it beats buying them separately.