Co-operative Bank cuts monthly packaged account fee to £12: is it worth going for?

The Co-operative Bank has bucked the trend of rising costs by announcing a fee cut on its packaged bank account for new and existing customers.

The bank, which was acquired by Coventry Building Society in 2025, has reduced the fee for its Everyday Extra account from £18 to £12 a month. And, rather than reducing the perks, it is also expanding some of its insurance benefits.

Here, we explain what's changed and whether the packaged account is worth considering, based on our unique product analysis and customer scores.

What's changed with the Everyday Extra account?

Packaged accounts charge a monthly fee in return for benefits such as travel insurance, breakdown cover and mobile phone insurance. They can offer good value if you would otherwise buy these separately, but only if you'll use the benefits.

The Co-operative Bank says the Everyday Extra account offers more than £640 worth of benefits, including:

• AXA worldwide travel insurance, which provides emergency medical cover, lost luggage protection and winter sports cover up to the age of 79
• RAC breakdown cover, which includes home start and UK and European roadside assistance
• LSG worldwide mobile phone insurance, covering loss, theft, accidental damage and breakdown, with cover of up to £1,500 per phone.

Over the years, we've seen the cost of these accounts rise, and benefits get scaled back, but the Co-operative Bank has bucked that trend.

Monthly fee cut to £12

The monthly fee on the Everyday Extra account has been reduced from £18 to £12 – a saving of £72 a year. 

That makes it the cheapest packaged bank account in our analysis.

New and existing customers will be billed the new £12 monthly fee from 1 July, when the bank next collects its subscription charge.

Mobile phone cover extended 

The mobile phone insurance has also been extended to cover members of your household, meaning children living at home can now benefit too.

• Find out more: best travel insurance and how to get the best mobile phone cover

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Should you open an Everyday Extra account?

The lower monthly fee makes Everyday Extra more competitive, but it's only likely to be good value if you'll use the included insurance and other benefits.

Before opening a packaged bank account, check whether you already have similar cover elsewhere. For example, your home insurance may already cover your mobile phone, while your car insurance could include breakdown cover.

If you're weighing up your options, our independent best packaged account reviews can help. We assess not only the current account itself, but also the quality of the included travel insurance, breakdown cover and mobile phone insurance to see which packaged accounts offer the best overall value.

No more foreign transaction fees

The bank is also making sweeping changes to its foreign card fees.

Many banks charge a foreign transaction fee when you use your debit card to pay in another currency.

Until now, the Co-operative Bank charged 2.75% on every debit card purchase made abroad. While that might not sound like much, the charges can quickly add up over the course of a holiday.

The bank has now scrapped the fee across all its debit cards, meaning you can make purchases and cash withdrawals overseas without paying an additional foreign transaction fee.

However, overseas retailers and cash machine operators may still apply their own charges. If they do, these should be shown before you complete the transaction.

• Find out more: best debit cards to use abroad