Virgin Money launches new cash ISA with top interest rate – but not everyone can benefit
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Virgin Money customers can now access the market-leading rate of one percent AER on a one-year fixed rate ISA, following the launch of its exclusive cash ISA. Also being launched is Virgin Money’s new easy access ISA, which offers 0.50 percent AER.
This rate is variable however, meaning it can change.
However, the bank’s “loyalty savings products” are just that – meaning they’re focused on loyalty.
As such, only certain people are able to open these exclusive accounts.
The new ISAs are available exclusively to Virgin Money, Clydesdale and Yorkshire Bank current account customers.
It’s possible to open and manage the accounts online, through the mobile app, or in store.
Zack Hocking, Head of Personal Deposits at Virgin Money, said: “The events of this year have given us all time to reflect on our relationship with money and many people want to feel more in control of their finances.
“The new ISAs are integrated into our current account platform, enabling customers to manage all of their money in one place and, with great rates available exclusively for our current account customers, they are a unique offering in the market and demonstrate our commitment to rewarding loyal customers.”
Those interested in locking their money away in the one-year fixed rate cash ISA will benefit from a fixed rate of one percent.
According to Virgin Money, this may be an option which suits customers who have a lump sum of money, and are looking to earn a “higher rate of interest”.
The rules state customers are able to add money up until 30 days after Virgin Money withdraws the product.
It’s important to be aware that withdrawals within the fixed rate period are subject to 60 days’ loss of interest on the amount withdrawn.
This is unlike the easy access cash ISA, where money can be added at any time.
It is also permitted to make an unlimited number of withdrawals.
According to the money comparison website Moneyfacts.co.uk, the new fixed-rate ISA is currently offering a market-leading rate.
The analysis of 48 products found the next best ISA rate for one-year fixed accounts is Newcastle Building Society’s One Year Fixed Rate ISA (Issue 37).
This particular account pays 0.85 percent AER.
Commenting on the product launch, Rachel Springall, Finance Expert at Moneyfacts, told Express.co.uk: “It’s fantastic to see Virgin Money launch a market-leading one-year fixed rate ISA at a time where many savers may well be struggling to get a decent return on their cash.
“It is an exclusive offer though, available for new and existing Virgin Money, Clydesdale Bank or Yorkshire Bank current account customers.
“If consumers are considering the account, it is worth pointing out the Virgin Money do offer a reasonable current account, but as always it is worth comparing the overall benefits it offers before committing.
“Should savers want instant access to their cash and wish to still utilise their ISA allowance, the easy access ISA offers a reasonable return of 0.50 percent in the current market, but it can be beaten.”
This year has seen a number of banks and building societies forced to cut interest rates offered on a whole host of accounts.
It came following the Bank of England Base Rate being cut to a historic low of 0.1 percent back in March.
The Bank Rate reduction is something which a number of providers have cited as being a factor when announcing the changes.
Today, it was confirmed that the Bank Rate will be maintained at its current level of 0.1 percent.
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