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Virgin Money increases interest rate on fixed rate cash ISA

02/10/2012

This information is intended for use by journalists and is correct at the time of publication. Customers wanting to view our current savings range should visit our savings pages.

  • New fixed rate cash ISA issues are launched
  • 3 year fixed rate has increased to 3.50% - against a background of falling rates generally
  • Same rates are available through all channels - online, phone and branches

Virgin Money has added two new fixed rate cash ISA issues to its range of savings products. The new Virgin Fixed Rate Cash ISAs offer competitive rates of either 3.00% fixed for one year or 3.50% fixed for three years, with the same rates available in stores, online, by post and over the telephone.

Against a background of falling interest rates for savings customers in the UK, Virgin Money is increasing the return on the 3 year fixed rate ISA to 3.50%, and maintaining the rate on the 1 year fixed rate at 3.00%. Recent data from Moneyfacts showed that many savers are facing a decrease in income as banks and building societies reduce interest rates. The data showed that the average return on a one year fixed rate account has fallen from 2.77% to 2.55% in the past two months, whilst the average two year fixed rate is down from 3.29% to 3.01%1.

All Virgin Money cash ISAs accept transfers from existing ISAs, and customers can withdraw funds during the fixed rate period subject to a charge equivalent to 60 days loss of interest for the 1 year account and 120 days for the 3 year product.

Anthony Mooney, Mortgage and Savings Director at Virgin Money said: “Savers have felt the effects of low interest rates in the economy for a sustained period of time now. While average fixed rates in the savings market have been reducing recently, we are delighted to be able to increase the interest rate on our fixed rate ISA, offering customers a guaranteed return over three years.”

More information on the savings range is available at uk.virginmoney.com/savings

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Product details

Product nameTax-free*** /AER**Monthly tax-free***
Virgin Fixed Rate Cash ISA Issue 23 (1 year)3.00%3.00%
Virgin Fixed Rate Cash ISA Issue 24 (3 years)3.50%3.50%

**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 tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.

These Virgin Money branded accounts are personal deposit accounts with Northern Rock plc. The Financial Services Compensation Scheme (FSCS) provides protection to customers with these accounts under Northern Rock plc's existing FSCS membership up to a maximum of £85,000 per person. The £85,000 limit relates to a customer's combined deposits with Northern Rock plc under the Northern Rock brand or Virgin Money brand names.

Notes to editors

Moneyfacts data quoted in Sunday Times, 30 September 2012

About Virgin Money

  • Following the acquisition of Northern Rock in January 2012, Virgin Money provides credit cards, mortgages, savings, pensions, investment and protection products to over four million customers
  • 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