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Virgin Money launches new ISA paying 2.75%

01/03/2013

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.

  • Research shows three in four people do not use their tax-free savings allowances
  • New fixed rate ISA from Virgin Money pays 2.75% – higher than the latest CPI inflation figure

In the current low interest rate environment, it is important that savers do all they can to maximise their returns. One of the first tips for any saver is to look to use their tax-free savings allowances effectively.

However, while 86% of adults in the UK hold some form of savings, only one in four people hold savings in a tax-efficient wrapper. Although younger savers (those under 25 years old) are almost as likely to have savings as other adults (83% compared with 86% of all adults), only 13% of this younger age group hold savings in a tax-efficient wrapper, compared with 26% for all adults. (Source: Datamonitor, survey of 2,000 UK consumers, September - October 2012.)

Virgin Money has launched a new fixed rate ISA paying 2.75% annually – higher than the latest CPI figure – fixed for five years. (Source: ONS.)

The new fixed rate ISA is available in Virgin Money stores, online and by post, with the interest rate the same however a saver chooses to apply. The account accepts transfers in of previous cash ISA subscriptions, as well as new subscriptions. Withdrawals are permitted during the fixed rate period, subject to loss of interest.

Peter Rogerson, Commercial Director – Savings and Mortgages at Virgin Money said “There are two simple steps savers should take to maximise their returns in the current low interest rate environment. Firstly, savers should always consider using their cash ISA allowance for savings, which means they will receive interest without any tax deducted.

“Secondly, ISA savers should consider whether they need instant access to their money. If not, they can earn a higher return with a longer term fixed rate, such as Virgin Money’s new ISA which offers a return above current inflation, with the interest rate guaranteed for the next five years.”

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

Product details

 Annual tax-free rate*/AER**
Virgin Fixed Rate ISA Issue 352.75%
Virgin Fixed Rate E-ISA Issue 332.75%

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

**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.

NOTES TO EDITORS

About Virgin Money

  • Virgin Money provides savings, mortgages, credit cards, 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

 

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