Virgin Money has launched a savings account with an impressive double-digit interest rate. Savers can deposit up to £250 per month into the account, with no interest being charged on any additional amounts.
If a saver paid £250 into this account every month for a year, they would end up with £3,162.40, of which £162.40 would be interest. This deal is locked in until July 31, 2025, the date the account matures, reports The Express.
So who can access the Virgin 10% account?
This savings account is only available to customers who have held a Virgin Money current account since 4 December 2019. Customers who originally opened a current account with Clydesdale Bank or Yorkshire Bank, such as a Signature Current Account, will also be able to open this new savings account.
How does the Virgin Money savings plan work?
Customers can pay up to £250 a month into the account for a year and earn 10% interest on their growing savings. You have the option to skip months and if you can’t save the full £250 in a given month, you can make up for it by saving more in subsequent months.
Interest paid by Virgin Money is not included in the £250 monthly limit. The maximum amount customers can earn interest on at the end of the 12-month fixed term is £3,000 – this does not include any interest credited to the account.
Virgin Money calculates interest on a rising balance, with the amount of interest payable determined at the end of each day based on the balance. Interest is paid quarterly on the last working day of March, June, September and December. These regular savers are only worth considering if you want to develop a saving habit – if you have a lump sum of £3,000, an account paying around 5% interest over the course of a year would pay a similar rate.
How does it compare to other top savers?
The Principality Building Society offers an 8 per cent regular savings account to customers who are not already members of the society. Savers can deposit up to £200 per month into this account.
The interest rate is fixed for six months. After this period, a saver who deposits £200 each month would have £1,227.53. When the account balance reaches £1,200, no further deposits can be made.
First Direct offers a regular saver a payment of 7 per cent, allowing savers to save up to £300 per month. A saver paying the full £300 per month into this account would accumulate £3,736.50 after 12 months. However, this account is only available to customers with the First Direct 1st Account.