Packaged current accounts have always been made to appear as a money saving deal for consumers however, this many not be the case as many financial institutions use it as a lucrative source of revenue. A new current account unveiled Friday by Yorkshire Bank offers consumers an attractive package that includes a travel insurance policy for only £10 a month. The Signature Current Account is already raising eyebrows among industry sources after claims by the bank that customers could save up to £280 a year.

The new account features worldwide travel insurance, mobile phone and gadget cover, car breakdown cover and ID theft insurance. Although Yorkshire Bank says that its travel insurance policy covers the insured and their family of up to two adults and four dependent children for worldwide travel, certain countries are exempt from the policy including Afghanistan, Cuba, Liberia and Sudan. The argument here could be that countries ridden with political instability and who for reasons of security are not considered a favourite holiday destination such as Afghanistan are left out of the policy.

Market experts speculate that Sudan and Liberia are not in the list of top holiday destinations that could warrant a travel insurance cover mainly because of previous or perhaps even existing travel warnings issued against them. At the same time the policy does not include travel to Cuba which critics claiming that the Signature Current Account does not offer value for money because consumers can find a similar policy for as little as £60 inclusive of a trip to Cuba.

The Signature Current Account also comes linked to a Signature Savings Account which currently pays 5.3%, although this includes a bonus of 0.75% until September 2009 which could mean the rates will fall then. As a packaged current account that has been touted as a money saving deal and which also comes with a bonus, it is surprising that it is not a table-topping savings account. 

Additionally, the worldwide travel insurance policy from Yorkshire Bank comes with 17 days’ winter sports cover which the bank claims is worth £180 however, for a single person travelling without children, they can find cheap travel insurance if they take time and shop online for the best deal. HSBC's Bank Account Plus offers a packaged current account which pays 8% on credit interest balances while still offering worldwide travel insurance, however, a customer will still end up paying more than £155 a year.

Other cheaper deals available in the market also include totally free European travel insurance by Alliance and Leicester also known as fee-free ‘Premier Account’ which is targeted at customers who confine their holidays to the continent. Alliance and Leicester ‘Premier Account’ customers will get 1.5% interest on credit balances and 0% interest on overdraft for the first 12 months (balances up to £2,500 for both credit and overdraft rates). At the same time, they will need to pay in at least £500 a month to qualify for the free European travel insurance.