Co-op Bank has eliminated its 2.75 per cent transaction fee on overseas debit card payments and cut the monthly cost of its extras account from £19 to £12.

This full-fat account is called Everyday Extra and comes with worldwide family travel insurance, mobile phone protection and UK and European breakdown cover.

Co-op Bank's deal is competitive when compared with other options that give a similar level of protection.

Both Chase and Monzo charge £12.50 and £17 a month respectively for their extras accounts, while bundles from high-street names are generally on the more expensive side.

Nationwide charges £18 monthly for its FlexPlus current account and NatWest levies a £22 monthly cost for its Platinum rewards account.

Co-op Bank slashing these fees is well timed if you're going abroad for the summer holidays.

Is it worth signing up for a packaged account?

Kate Steere, a banking expert at the comparison website Finder, said that the devil is in the detail with packaged accounts, but Co-op Bank holds up under scrutiny.

'At just £12 a month, it undercuts major competitors like Chase Protect (£12.50) and Monzo Max (£17),' she said.

'You get extensive worldwide travel insurance (covering partners and kids) alongside comprehensive RAC breakdown cover that includes onward travel and a courtesy car.'

Keep in mind that your spouse or partner is only covered under the travel insurance when they're away with you, but kids under 22 are covered when they're travelling independently.

In our view, bank accounts that give you rewards and extras for a fee are worth it if they save you money on the bundled products and if you value the convenience.

Many of them provide protection in the form of travel insurance and breakdown cover so can be useful for people who like to travel.

But it's important to compare exactly what protection you're getting to make sure you're not caught out.

For example, Co-op Bank's travel insurance doesn't cover your partner for independent travel. But it's possible to find deals that do include this, such as Nationwide's FlexPlus account.

> Read more: Under 40s from Birmingham are most likely to switch current account 

How do packaged accounts compare?

Here's a selection of packaged bank accounts from newer app-based challenger banks as well as established high-street names.

We've picked out key features so you can compare the accounts below, starting with the cheapest deal. However these aren't comprehensive, so make sure you check through the details carefully before going ahead.

For example, you should look at the excess for each type of policy. This is the set amount you need to pay before a claim is paid out – with mobile phone cover this is often between £50 and £100.

For more information, we examine the best everyday current accounts in our regularly updated guide.

If you're interested in savings accounts, have a look at our pick of five of the best cash Isas.

Co-op Bank is owned by Coventry Building Society, after the brand was taken over early last year.