Virgin Money has launched a new issue of its Regular Saver Exclusive account, offering a fixed rate of 6.50% AER until September 30, 2027. A customer who pays in the full £250 every month could build up a pot worth £3,105.87 after 12 months, earning £105.87 in interest on £3,000 of savings.
Account details and eligibility
The account is available to existing Virgin Money personal current account customers, as well as new customers who open an eligible current account. However, there is a strict £250 monthly limit. Customers can pay in anything from nothing up to £250 in each calendar month, but if they miss a month they cannot make up the shortfall by putting in more than £250 in a later month.
The bank's own example assumes £250 is paid in on the first day of every month for 12 months, with no withdrawals. Under those assumptions, the £3,000 paid in would grow to £3,105.87, including £105.87 of interest.
Rate and withdrawal rules
The rate is fixed, meaning Virgin Money, which is now owned by Nationwide, cannot reduce it during the fixed-rate period. Another attraction is that customers can withdraw money whenever they need it, although there is an important catch. If they have already paid in the £250 monthly maximum, any money withdrawn cannot be replaced during that calendar month.
The account can only be held by customers with certain Virgin Money current accounts, including the M Plus Account, M Account and Club M Account. It is not available to customers with the Essential Current Account or the Virgin Money Current Account. Virgin Money says the account is a limited-issue product and can be withdrawn from sale.
Management and tax considerations
The account can be managed through the Virgin Money app, online, over the phone or in branch. Savers should also remember that the 6.50% figure is a gross rate and interest may be taxable depending on their circumstances and whether they exceed their Personal Savings Allowance.
