Defaqto data shows that five years ago there were 33 packaged (or added value) current accounts on the market - a figure which now stands at 69. In fact, since November 2009 there have been more packaged accounts available than free in-credit accounts.
Further, the average monthly fee for a packaged account has increased over the same period: from £11.59 in 2006 to £15.44 currently, with monthly fees now ranging from £6.50 to £40.
Defaqto's analysis also indicates that the range of benefits included within packaged accounts varies widely between products.
As a result, it is important for people looking to open a packaged account to focus on the benefits they value most when comparing different options to ensure they select a suitable account.
David Black, Defaqto's Insight Analyst for Banking, said:
"If someone is considering opening a packaged current account they should look at each of the incentives on offer and decide whether they need the benefit and, if so, whether what it provides is suitable for their circumstances - and ultimately represents good value against the monthly fee.
"The three high value incentives currently offered by most packaged current accounts are travel insurance, motor breakdown cover and mobile phone insurance.
"For each benefit, it is important for people to look at the type and level of cover that is actually being offered - and to compare these against other accounts and also standalone alternatives.
"In addition, people need to be mindful of duplicating cover they may already have in place, for example as part of workplace benefits.
"Essentially, everyone's needs are different so people should look to ensure that any account they choose matches those needs - and key to this is looking at the features of the account and comparing different options on this basis."
There are about 54 million active current accounts in the UK and packaged current accounts make up about 17% of the market in terms of account ownership.
Defaqto's Star Ratings for packaged accounts aim to help people understand the overall level of features and benefits that different accounts offer.
Through assessing 98 features of each packaged account on the market, Defaqto has given each a rating of 1 to 5 depending on how comprehensive they are.
