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Virgin Money launches new charity account and calls on banks to focus on charity sector

Please note that this is a historic press release. Current savings products are available at www.virginmoney.com/savings
  • Competitive interest rate of 2.60%
  • Existing Charity Accounts interest rate raised to 2.60%
  • No introductory bonus providing good, clear value for charities
  • Account joins not-for-profit fundraising service Virgin Money Giving and market-leading Virgin Charity Credit Card

Virgin Money has launched a brand new Charity Account that offers charities the opportunity to save at a market-leading rate for instant access of 2.60%.

Those charities that already hold a Virgin Charity Account will not lose out – they will also have their interest rates increased to 2.60%, to match the new account.

To open an account forms can be downloaded from www.northernrock.co.uk. Once the account is open it can be operated via a branch or by post, with an online service to follow. The minimum deposit is £1 and the maximum deposit limit is £2 million. No notice of withdrawals is required, meaning charities have easy access to their funds.

The table below illustrates the difference in interest paid between the big four banks and Virgin Money’s new Charity Account using an initial deposit of £100,000 over 1 and 3 years to illustrate. In just one year a charity could be £2,550 better off with the Virgin Money account and a whopping £7,855 over three years.

InstitutionAccount NameRate1 year3 year
HSBCCommunity Savings Account0.05%£100,050£100,150
Lloyds TSBBusiness Instant Access0.05%£100,050£100,150
RBSTreasurer’s Account0.05%£100,050£100,150
BarclaysBusiness Saver0.05%£100,050£100,150
VirginCharity Account2.60%£102,600£108,005


Source: Money£acts: Datascreen │c. 75% of registered charities have an income of under £100,000 pa

Jayne-Anne Gadhia, Chief Executive Officer at Virgin Money said: "Charities are currently neglected by the majority of banks and I am delighted with our new instant access Charity Account. It will really make a difference to many of the small and medium sized charities that we know so well from using virginmoneygiving.com.

"Our Charity Account provides a simple and accessible way for charitable organisations to manage their funds at a competitive interest rate. We will continue to bring products to the market that make charities better off and build on our innovations in this sector so far to date.

"We are also calling on the major banks to renew their focus on charities and improve rates to play a small part in helping charities help others and make everyone better off."

The new Charity Account joins Virgin Money's existing propositions for the charity sector: Virgin Money Giving and the Virgin Money Charity Credit Card. Virgin Money Giving, the online fundraising service from Virgin Money, has helped fundraisers raise over £100 million for good causes. The innovative Virgin Money Charity Credit Card offers 0.8% in cash back which can be topped up to 1% with Gift Aid, for UK taxpayers, and over 2,500 charities to choose from on the virginmoneygiving.com platform.

- ENDS -

More information on Northern Rock’s savings range is available at www.northernrock.co.uk/savings

Media Contacts:

Press Office
Tel: 0191 279 4676
email: press.office@virginmoney.co.uk

Northern Rock plc Registered in England and Wales under company number 6952311.
Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL (Main Switchboard 0845 600 8401).
Authorised and regulated by the Financial Services Authority.

PRODUCT DETAILS

AccountAnnual Gross*/AER**
Virgin Charity Account2.60%


*Gross is the rate of interest paid to eligible non-taxpayers without deduction of tax. Please note interest will be paid net of tax unless you are eligible to receive interest gross and submit the required registration form to us.

**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.

The Virgin Charity Account can be opened by any charity registered with the Charity Commission of England and Wales or the Office of the Scottish Charity Register. Accounts must have either two or three named trustees on the account.

NOTES TO EDITORS

About Virgin Money

  • Virgin Money acquired Northern Rock plc from Her Majesty’s Treasury on 1 January 2012. The acquisition included:
    • 75 Northern Rock branches
    • One million customers
    • c.£14bn mortgage book
    • c.£16bn retail deposit book
    • c.2,100 employees
  • Combined with Virgin Money’s existing business of three million customers, the enlarged Group has over four million customers.
  • The combined business operates under the Virgin Money brand.
  • Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders.
  • Virgin is the official sponsor of the London Marathon, the biggest annual fundraising event in the world. Virgin Money leads the London Marathon sponsorship with the ambition to help runners raise £¼ billion over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.

Northern Rock plc

  • On 1 January 2012, Northern Rock was acquired by Virgin Money.
  • Northern Rock is a bank, authorised by the FSA as a deposit taker and mortgage lender. It offers savings accounts to customers in the UK and Ireland and mortgage products to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.