Virgin Money increases interest rates for savings customers
- Rates for the Defined Access ISA and Defined Access Saver increase to 1.41% tax-free1/AER2/gross3
- Interest rate increases apply equally to existing customers as well as to new accounts
Virgin Money is increasing the interest rate on both its Defined Access ISA and Defined Access Saver accounts. The variable rate of interest on the accounts will increase to 1.41% tax-free1/AER2/gross3, from 1.35% previously.
As well as applying to all new accounts opened, existing customers will also benefit from the higher interest rate with effect from 26 March 2015.
Defined Access accounts are designed for customers who only require occasional access to their savings, but want the security of knowing they can do so without notice if needed. Customers can make up to three withdrawals per calendar year and retain their interest rate of 1.41% tax-free1/AER2/gross3. If a fourth withdrawal is made, the interest rate will revert to 0.75% tax-free1/AER2/gross3 until the calendar year ends, at which point it will return automatically to the original rate and the number of withdrawals will reset to zero.
Accounts can be opened in store and online through Virgin Money’s website. As with all Virgin Money savings accounts, interest rates are the same through all channels and interest rates on ISAs are the same or better than the equivalent non-ISA products.
The Defined Access ISA accepts transfers in from existing ISAs, up to the maximum balance on Defined Access accounts of £100,000.
Zack Hocking, Head of Savings at Virgin Money said: "We’re delighted to be able to increase the interest rates on our Defined Access accounts. Rather than simply replacing the existing products with new accounts, we decided to also reward our existing Defined Access customers to ensure they benefit from the higher returns on offer."
Further information on Virgin Money’s full savings range is available at www.virginmoney.com.
Virgin Money Press Office
0191 279 4676
PRODUCT DETAILS - DEFINED ACCESS ACCOUNTS
Defined Access Saver & Defined Access ISA (Original rate)
|Tax-free1 / Gross3||AER2|
Defined Access Saver & Defined Access ISA (Rate after fourth withdrawal)
|Tax-free1 / Gross3||AER2|
1 The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
2 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.
3 Gross is the rate of interest paid to eligible non-taxpayers without deduction of tax. Interest will be paid net of tax unless account holders are eligible to receive interest gross and submit the required registration form.
NOTES TO EDITORS
About Virgin Money
- Virgin Money provides savings, mortgages, credit cards, current accounts, 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, including funds raised through Virgin Money Giving, the not-for-profit online fundraising service, since 2010.
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 /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.