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Virgin Money launches its first instant access savings account for small businesses

23/01/2018

  • Four in 10 SMEs are currently shunning savings accounts due to poor rates
  • Almost one in three want instant access to money to cover everyday business expenses
  • Virgin Money’s new instant access savings account pays a competitive rate of 0.60%

Virgin Money has launched a new and competitive instant access business savings account as research1 shows Small and Medium-Sized Enterprises (SMEs) are currently shunning savings accounts due to the interest rates available.

The poll of 500 SME senior decision-makers reveals they are choosing to avoid savings accounts due to the poor rates on offer (42%) and not wanting to tie up their cash (29%)2.

A third (33%) say managing their business finances is a necessary evil, while a quarter of respondents (24%) said they prioritise it when they would often rather be working on something else within the business. As a result, it is not surprising that more than one in four (28%) of those with any type of business account say that they never check the interest rates.

Virgin Money’s first foray into SME banking will help address this issue with a competitive instant access savings account paying 0.60%. Account applications are available online, from any Virgin Money Store or through the post, and accounts can be serviced online, through contact centres and Stores.

Hugh Chater, Chief Commercial Officer at Virgin Money, said: “We know SME business leaders often have to juggle their many business priorities while ensuring their finances are in order. For too long, these businesses have been short-changed with the savings accounts on offer.

“With lots of SMEs not having enough time to shop around for the best deals, many are getting a rough deal and that is why we are entering the market. We look forward to welcoming business customers on board ahead of our plans to launch a Business Current Account by the end of 2018.”

All Virgin Money business customers have access to Virgin Money Lounges. Designed exclusively as places for customers to relax and unwind, Lounges offer complimentary refreshments, free Wi-Fi, newspapers, magazines, TVs and iPads.

Virgin Money business customers also have access to a range of exclusive offers from the Virgin Group, including discounts on a range of Virgin products such as holidays, train tickets and health club membership.

More information on Virgin Money for Business and eligibility can be found at www.virginmoney.com/business.

ENDS

Media Contacts:

Virgin Money Press Office:

0191 279 4676

press.office@virginmoney.com

NOTES TO EDITORS

1Opinium surveyed 500 SME decisions makers in the UK on behalf of Virgin Money between 8 and 13 December 2017. Results have been weighted to reflect a nationally representative audience.

2Of SMEs with any type of business account.

Product details

ProductAER3/gross4Monthly gross4
Virgin Money Business Access Issue 10.60%0.60%
  • Customers can save anything from £1,000 to £1 million.
  • Accounts are available to UK registered sole traders, partnerships, limited companies and limited liability partnerships which are classed as micro, small or medium enterprises. Full eligibility details are available at virginmoney.com/business.
  • All directors, owners, partners, senior management and account signatories must be UK residents aged 18 or over.

3AER 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.
4Gross P.A.is the rate of interest without the deduction of tax. The automatic deduction of tax on savings interest for non-ISAs ceased with effect from 6 April 2016.

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 virginmoney.com/business for full terms and conditions.

About Virgin Money

  • Virgin Money offers savings, mortgages, credit cards, current accounts, currency services, pensions, investments and protection products to customers across the UK.
  • 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.
  • More than 13,500 charities have registered with Virgin Money Giving and, by the end of Q3 2017, over £590 million had been donated to charities through the service since its launch in 2009, resulting in an estimated £18 million more donated to charities because of its not-for-profit model.

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.

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