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Virgin Money increases rates for savers: new ISA, no restrictions

27/06/2014

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.

  • Market-leading rate on an Easy Access ISA that comes without access restrictions
  • New choice of fixed rate ISAs and bonds launched offering a fixed return over a set period of time
  • Research shows that most people could be earning even more by switching their entire savings to a tax-free ISA

Virgin Money has strengthened its savings range for customers by launching new products and increasing interest rates on new issues of its instant access and fixed rate products. Accounts can be opened in stores, online, over the telephone and by post. Interest rates are the same through all channels and interest rates on ISA accounts either exceed or are equal to non-ISA rates.

Easy Access ISA

The Virgin Easy Access ISA offers customers a market-leading rate of interest, which is free from access restrictions and not inflated by an introductory bonus that falls away after a short period of time. Issue 9 of the Easy Access ISA account pays a bonus-free variable rate of 1.50% tax-free1/AER2. Accounts can be opened with £1, and transfers from existing ISAs are accepted.

Fixed Rate ISAs and Bonds

The new issues of fixed rate products offer customers the same interest rates on both ISA and non-ISA bonds:

  • 1.76% tax-free1/AER2/gross3 for one year
  • 3.00% tax-free1/AER2/gross3 for five years
The fixed rate ISAs accept transfers from existing ISAs and additional deposits are accepted for 30 days following account opening, enabling customers to take full advantage of the increase in ISA allowance which comes into effect on 1 July.

Additional deposits can be made into fixed rate bonds for as long as the bonds remain available to new customers.

Anthony Mooney, Financial Services Director said: "Our new Easy Access ISA offers customers instant access to their money, without restrictions, at a market-leading clean rate, with no gimmicks such as short-term bonuses or access restrictions. It’s simple, transparent and with no catches – it just offers a straightforward, good value for money product.

"Our research shows that 75% of people have cash savings of less than £15,000, so with the ISA limit increase taking effect on 1 July, for most people a simple, straightforward ISA is the only savings account they need, with the added benefit of giving them tax-free returns on all of their savings."

Research* by Virgin Money in June 2014 shows that, on average, UK adults have cash savings of £6,230. 75% of those interviewed had total cash savings of less than £15,000, which is the new limit for ISAs coming into effect on 1 July 2014.

Information on Virgin Money’s full savings range is available at virginmoney.com


Media Contacts

Virgin Money Press Office
0191 279 4676

press.office@virginmoney.com

PRODUCT DETAILS


Easy Access ISA

IssueTax-free1 / AER2Monthly gross3
Virgin Easy Access ISA Issue 91.50%1.49%
Virgin Easy Access E-ISA Issue 91.50%1.49%


Fixed Rate ISAs

IssueTax-free3 / AER2Monthly tax free1
1 YearVirgin Fixed Rate Cash ISA Issue 84
Virgin Fixed Rate E-ISA Issue 84
1.76%1.75%
5 YearVirgin Fixed Rate Cash ISA Issue 102
Virgin Fixed Rate E-ISA Issue 85
3.00%2.96%

Customers can withdraw funds from fixed rate ISAs during the fixed rate period, subject to a charge equivalent to 60 days loss of interest for the one year product and 180 days for the five year product.

Fixed Rate Bonds

TermIssueAnnual gross1 / AER2Monthly gross3
1 YearVirgin Fixed Rate Bond Issue 109
Virgin Fixed Rate E-Bond Issue 88
1.76%1.75%

Withdrawals from these fixed rate bonds are not permitted during the fixed rate period.


1Gross 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.

2AER 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.

3The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.


NOTES TO EDITORS


About Virgin Money

  • Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products
  • 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 Money is the official sponsor of the London Marathon, the biggest annual one-day fundraising event in the world. Virgin Money has helped London Marathon runners raise over £¼ billion through Virgin Money Giving, the not-for-profit online fundraising service, since 2010.

Supplementary notes

The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in learning more about this product should visit http://uk.virginmoney.com/virgin/savings/ for full terms and conditions.

Virgin Money plc - Registered in England and Wales (Company No. 6952311). Registered Office - Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.