Virgin Money launches new bank account switching incentive offering joiners 25% cashback on supermarket shops and petrol
- Virgin offering switchers chance to earn 25% cashback on supermarket and fuel
- However, customers can earn 25% cashback for only 60 days up to max of £160
- We consider whether there are better switching incentives currently available
Virgin Money has launched a new bank account switching incentive that could help customers cope with escalating living costs.
Those who sign up will be able to earn 25 per cent cashback on supermarket and fuel spending for 60 days, up to a maximum of £160.
It is a well-timed move by Virgin, given rising food and fuel prices over the past 12 months.
Cashback carrot: Virgin is incentivising customers to switch with its offer of 25% money back on food and fuel spending for 60 days
Food and non-alcoholic drink prices rose 12.6 per cent in the year to July according to official figures, whilst annual petrol inflation hit 42.9 per cent and diesel climbed 46.1 per cent.
Hugh Chater, chief commercial officer at Virgin Money said: ‘Our latest switching offer enables customers to earn cashback on their everyday supermarket and fuel spending at a time when the cost-of-living crisis continues to challenge people’s spending and saving habits.
‘We’re pleased we can give our customers value when it matters most, helping to make them feel happier about money.’
Virgin’s cashback can be earned by spending at any UK supermarket, including Asda, Marks & Spencer, Morrisons, Sainsbury’s, Aldi, Lidl, Tesco, Iceland, The Co-operative and Waitrose, as well as any UK petrol station.
Switchers will also benefit from 2.02 per cent in-credit interest on balances up to £1,000, plus access to a linked savings account paying 1.71 per cent on balances up to £25,000.
How to get Virgin’s cashback offer
To benefit, switchers need to open either the Virgin Money M Plus Account or Virgin Money Club M Account.
They can do this either online or via the Virgin Money mobile banking app, using the Current Account Switch Service. They will also need to have at least two direct debits linked to the account.
Switchers will also need to sign up to Virgin Money Cashback in the Virgin Money mobile banking app, and pay at least £1,000 into the linked saver account within 45 days of opening their new account.
New customers will receive an email confirming they are eligible to start earning cashback, and will have 60 days from the date of the confirmation email to get the 25 per cent.
Is it worth switching to Virgin for this deal?
Although this is a nicely targeted switching incentive by Virgin Money, there are better offers currently available which don’t come with so many hoops to jump through.
The fact that switchers only have 60 days to use the cashback means that you would need to spend £640 on supermarket shopping and fuel in that time to max out the £160 cap.
Those looking for cash incentives to help weather the cost of living storm may want to consider First Direct and Halifax which are offering £175 and £150 respectively to switch.
New joiners won’t have to rely on cashback from spending to benefit from each of these freebies either.
For example, First Direct simply requires switchers only deposit £1,000 within 3 months of the account opening for them to receive their £175.
Similarly, Nationwide is offering a £100 to £125 switching incentive to new joiners, on top of a 5 per cent in-credit interest rate on balances up to £1,500 and a fee-free overdraft for the first year.
The cash bribe and interest combine to mean that someone switching to the FlexDirect account could earn between £175 and £200 across a 12 month period.
Santander, meanwhile, is offering £160 cashback to both new and existing customers when they switch their current account to a range of its bank accounts through the official switching service.
Customers will need to complete the switch within 60 days, deposit at least £1,000, set up two active direct debits and log in to online or mobile banking to benefit.
Another bank account offering cashback that’s worth mentioning is Chase Bank, which is offering 1 per cent cashback on all spending for the first 12 months barring a few exceptions.
Were someone to spend £20,000 on the card over the course of the first year that could add up to £200 in cashback.
The account comes with no monthly or annual charges and is entirely app based.
You can read more about the best bank account offers that we recommend here.
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