unused packaged account perks cost Britons up to £137m a year!

17th March 2007

Britons waste up to £137million ¹ each year on the cost of packaged accounts offering travel insurance, according to engage Mutual, which has just launched its new low cost travel insurance offer to help Brits beat high street banks' charges.

Following criticism of high street banks for selling customers unnecessary 'free' extras including travel insurance as part of expensive packaged accounts, calculations by engage show that the difference between paying for packaged bank accounts and shopping around for low cost travel insurance could save holidaymakers an average of £30 a year, with some saving up to £270 ².

Karl Elliott, Marketing Director of engage Mutual Assurance, comments:

“Packaged account holders are paying a high cost for cross-sold financial products, which many of them never use. In launching our new low-cost travel insurance, engage Mutual is offering our customers a simple product which, with a little financial planning, could save them money

The money they save could even mean that they are able to afford to go spend a little longer in duty-free”

key figures:

• one in nine of the UK's forty million current account holders pay a monthly fee for packaged accounts, costing an average of £10.04 a month, or £120.48 a year¹
• 51% of these packaged accounts include travel insurance, but 64% of these packaged account holders say they never use the travel insurance on offer
• 23% of packaged account holders don't use any of the "free" perks on offer ¹

engage Mutual Travel Insurance

engage Mutual has formed a new partnership with Travel Protection Services Limited, underwritten by UK Underwriting Ltd to offer customers engage Mutual Travel Insurance.

engage Mutual Travel Insurance includes single trip and annual multi-trip policies. Parents can include up to four children up to age 17 free of charge. A non-family child policy attracts a 50% discount on adult rates up to age 17.

engage Travel Insurance and costs, terms and conditions are available at www.engagemutual.com or by calling 0870 168 0826. Outline costs for 18 to 64 year olds are shown below.

engage Travel Insurance and costs, terms and conditions are available at www.engagemutual.com or by calling 0870 168 0826. Outline costs for 18 to 64 year olds are shown below.

engage Mutual Travel Insurance Costs for 18 to 64 year olds:

discount to watch the Catalan Dragons

engage Travel Insurance includes a low-cost, minimum cover option for fans wishing to travel to watch their team play the Catalan Dragons in the engage Rugby Super League in France. Super League supporters can get travel insurance to watch their team take on the Tigers for as little as £3.30 each, or £8.25 for a family (2 adults and up to 4 children).

Footnotes:

1. there are 4.4million paid-for packaged bank accounts in the UK, costing an average of £120.48 a year. Of these, 51% (2,244,000) include travel insurance, but 64% of holders don't use this benefit. 26% (1.144m) of holders don't use any benefits, therefore wasting £137.8m. Figures derived from uSwitch release, 26 September 2006
2. the average packaged bank account fee is £120.48 and the maximum is £360 per year - see source for footnote 1. An annual multi-trip world wide travel insurance policy from engage Mutual Travel Insurance costs £90.20. The average saving for a packaged account holder is therefore £30 pa. Someone with a higher-charging account could save up to £270 a year.

partner information

engage Mutual is one of the larger UK mutuals providing simple, value for money savings, protection and investment products.

engage prides itself as a family-oriented, modern mutual, providing products that help enable households of all kinds to proactively plan their finances to meet their future needs. More information on engage Mutual is available at www.engagemutual.com. engage Mutual can be contacted on 0800 169 4321† or by visiting www.engagemutual.com

Travel Protection Services Ltd

engage Travel Insurance is underwritten by UKU Ltd and is administered by Travellers Protection Services, a leading provider of travel insurance offering comprehensive cover at extremely competitive prices. Travellers Protection Services Limited insures over 2 million travellers every year. Their stated policy of ensuring that 'customers come first' is enshrined in a unique Claims Charter, which is dedicated to the professional and rapid settlement of valid claims. A Cash Back promise undertakes to settle all claims within seven working days of receiving all the relevant paperwork. If they fail, they will pay you cash compensation upon application.

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

notes to Editors:

If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engage Mutual - meeting the changing needs of today's modern families

1. engage Mutual is a trading style of Homeowners Friendly Society (HFSL) and its wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
2. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores and NAAFI Financial.
3. The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls
4. Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.
5. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk>
6. engage Mutual is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.
7. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
8. established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA)
9. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234
10. engage Travel Insurance and engage Super League Special are provided by Travellers Protection Services Limited (TPS). TPS are authorised and regulated by the Financial Services Authority - Firm Reference Number 311788 and are registered in England UK Number 02587396. TPS contact address is 1 Prince of Wales Road, Norwich NR1 1AW. Telephone calls between you and TPS may be recorded. TPS may not be able to quote in all circumstances.
11. engage Mutual Assurance is a trading name of Homeowners Friendly Society Limited (HFSL) and its wholly owned subsidiary engage Mutual Services Limited (Company Registration Number 3088162). engage Mutual Services Limited is an Introducer Appointed Representative of Travellers Protection Services Limited.