Virgin Money has relaunched its Regular Saver Exclusive account with a 6.50% interest rate fixed for one year. Customers who save the maximum £250 each month until September 30 next year could earn £105, bringing their projected savings to £3,105.
Eligibility and account rules
To be eligible, savers must hold a Virgin Money personal current account. A regular savings account requires monthly deposits, usually without withdrawals over a set period. With this account, customers can deposit as little or as often as they like up to the £250 monthly maximum, but if regular payments fall below the maximum for one month, projected earnings will be lower, as the shortfall cannot be made up in later months.
Withdrawals are permitted freely, but they will reduce end-of-term earnings. If money is withdrawn after paying the monthly £250 limit, it cannot be replaced.
Fixed rate and management options
The interest rate is fixed from the day the account is opened until the Maturity Date, so even if Bank of England interest rates drop, the rate remains stable. At the end of the fixed term, the account converts to an easy access savings account, so it is worth reconsidering options after 12 months.
The account can be managed in the app, online, in branch or over the phone. Customers can only have one Regular Saver Exclusive account open at any time.
How other accounts compare
Three large high street banks offer an 8% AER rate on their regular savings accounts to new and existing current account customers: the Bank of Scotland Monthly Saver, Lloyds Bank Monthly Saver and the Santander Regular Saver.
First Direct pays 7% AER on its Regular Saver Account, the same rate as the Co-operative Bank Regular Saver Issue 1. Both require the customer to hold a current account. For those without a current account, the Suffolk Building Society pays 5% on the Online 1 Yr Fixed Rate Regular Saver to anyone.
