Virgin Money ups its ‘exclusive’ linked easy-access savings account to 1.71% making it a best buy as banks compete for current account customers
- Virgin has upped its linked savings account from 1.56% to 1.71%
- Savers will need to set up a Virgin current account in order to gain access
- The rate also only applies on balances up to £25,000
Virgin Money current account customers once again have access to the best easy-access savings rate on the market.
The bank, with 6.5million customers, has upped its linked savings account from 1.56 per cent to 1.71 per cent. It previously increased the rate from 1 per cent to 1.56 per cent at the start of June.
Today’s hike puts Virgin’s deal ahead of the best rates on our independent best buy easy-access tables – Al Rayan Bank’s 1.6 per cent account being the next best.
It also puts it comfortably ahead of the 1.5 per cent savings account, linked to the Chase current account that was launched in March.
Market leader: Virgin Money has upped the savings rate on its popular linked savings accounts once again. The rate rises from 1.56 per cent to 1.7 per cent for all new and existing customers on balances up to £25,000.
Virgin’s linked savings account pays 1.71 per cent on balances up to £25,000, above that level the rate falls to 1 per cent.
Someone stashing £25,000 into this deal could expect to see a return of £431 over the course of the year – unless Virgin changes the rate during that time.
Hugh Chater, chief commercial officer at Virgin Money, said: ‘Following the Bank of England’s base rate increase in June, our new market-leading rate gives consumers more reasons to bank with Virgin Money and rewards our existing customers.’
‘This boost to our linked savings rates means we can offer both new and existing customers even better value for their savings, which is so important in these challenging times.’
How can I get Virgin’s new savings rate?
The account is available to anyone with a Virgin current account with the rate increase being automatically passed onto existing customers.
Those who don’t have a current account with Virgin Money will have to set one up in order to benefit.
The linked savings deal is only available to those who have a current account with Virgin Money.
This can either be done by switching your bank account using the official current account switching service or by setting it up as a secondary account.
Virgin Money will also feel it offers some additional strong incentives to entice new joiners to bank with it.
Virgin Money M Plus and Club M current account customers benefit from 2.02 per cent on balances up to £1,000.
New customers switching to the Virgin Money M Plus Account and Virgin Money Club M Account can also receive a bonus of 20,000 Virgin Points to spend with Virgin Red, thanks to Virgin Money’s latest current account switching offer.
Virgin Red is a rewards club that turns everyday spending into points. Once you are a member, you can earn and spend Virgin Points across almost 200 different rewards.
The 20,000 Virgin Points boost means travellers could get a return flight to Barbados, the Bahamas or St Lucia, while bakery enthusiasts could turn their points into 100 sausage or vegan sausage rolls, 61 coffees or teas or 100 doughnuts or muffins.
Is it a no-brainer?
For savers looking to stash away £25,000 in an easy-access account it could be, as long as they are prepared to set up a current account to take advantage.
The fact that the interest rate drops to 1 per cent after £25,000 might put off savers with larger balances.
Chase bank, for example, allows its customers to save up to £250,000 without compromising on its 1.5 per cent rate.
Whilst other easy-access providers such as Al Rayan and Sainsbury’s Bank are offering deals that allow even bigger sums to be stashed away without compromising on their headline rate.
However, savers with large sums would be wise to remember that the FSCS only protects up to £85,000 per individual with each of these banks.
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