THOUSANDS of Virgin Money customers are set to be hit with a monthly fee hike on their bank accounts in weeks.
The high street lender has confirmed it is raising the price of its Club M packaged account, forcing loyal savers to fork out more cash to keep their perks.
From February 1, 2026, the monthly fee for the Club M account will jump from £12.50 to £14.
While a £1.50 rise might sound small, it adds up.
The hike means customers will now be paying £168 a year just to keep the account open – an increase of £18 annually compared to the current rate.
The Club M account is Virgin Money’s flagship “packaged” bank account.
Unlike standard free current accounts, you pay a monthly fee in exchange for a bundle of insurance policies and perks.
For £14 a month, customers receive worldwide family travel insurance covering the account holder, their partner, and up to four dependants under 18, including winter sports, golf and weddings.
They also get worldwide gadget cover for mobiles, cameras, laptops and tablets for the whole family.
Breakdown cover is included, providing roadside rescue for the account holder in the UK whether driving or a passenger, plus vehicle cover in Europe.
Virgin Money also pays Club M customers interest on their cash.
On the current account, you earn 1% AER on balances up to £1,000.
And on a linked saver, you get 2% AER on balances up to £25,000, and 1.50% AER on any amount above that.
A Virgin Money spokesperson said: “This is the first increase since February 2021, and the new price reflects costs set by the third-party insurers for the benefits provided, such as travel insurance, mobile and gadget insurance and breakdown cover.
“Virgin Money does not earn any commission on the monthly fee, and we believe Club M remains one of the best-value packaged accounts on the market.”
Despite the price hike, packaged accounts like Club M can still be a money-saver – but only if you actually use the benefits.
Buying family travel insurance, comprehensive gadget cover, and European breakdown cover separately could easily cost upwards of £300 to £400 a year on the open market.
For example, standalone breakdown cover with European assistance often costs over £100 annually, and family worldwide travel insurance can be just as pricey.
If you are a frequent traveller with a family and lots of tech, the £168 annual fee might still look like a bargain.
However, if you don’t travel often, or if you already have breakdown cover through your car insurance, you could be pouring money down the drain.
Many competitors offer similar packaged accounts, usually ranging from £15 to £20 a month, so Virgin’s £14 fee remains competitive – even after the hike.
What other package bank accounts are on offer?
Nationwide‘s FlexPlus packaged bank account costs £18 a month and offers a host of additional services and perks.
These benefits include worldwide travel insurance, mobile phone insurance, breakdown cover, and preferential rates on loans and overdrafts.
The account does not require a minimum pay-in, and customers get worldwide travel insurance for family trips of up to 31 days.
Mobile phone insurance is also provided for all members in the same household, and it covers for loss, theft, damage and faults.
Plus, account holders can use their debit card abroad without incurring non-sterling transaction fees.
FlexPlus customers also get vehicle breakdown cover in the UK and the rest of Europe, even if somebody else is driving.
The Co-operative Bank’s Everyday Extra account also costs £18 a month and offers worldwide travel insurance and UK & European breakdown cover.
Meanwhile, Halifax’s Ultimate Reward package bank account costs £19 a month or £228 a year.
Customers do not need to make a minimum monthly payment to qualify for the account.
The product comes with free gadget insurance, worldwide family travel insurance, UK breakdown cover and home emergency cover.
Lloyds Bank’s Club Lloyds Platinum account offers worldwide family travel insurance, AA breakdown cover, and mobile phone insurance.
It costs £22.50 a month, plus an additional £5 Club Lloyds fee.
As part of the perks, customers can enjoy free lifestyle benefits, choosing between 12 months of Disney+ or six cinema tickets.
The account also provides exclusive savings and mortgage rates, along with the chance to earn interest on your current account balance.
Plus, customers can earn up to 15% cashback on debit card purchases at selected retailers.
If you only need European travel insurance, NatWest’s Reward Silver account could be a great option.
It costs £11.50 a month and provides cover for trips of up to 22 days within Europe.
Customers also get free mobile phone insurance and can use their debit card abroad without incurring extra charges.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
