Virgin Money offers new 'bonus' 6.65% interest rate on savings - on these conditions
The bonus interest rate is currently leading the market in its sector.
Virgin Money has launched a “bonus” 6.65 percent interest rate on its one-year fixed savings account for customers who complete certain steps.
The provider’s One Year Fixed Rate E-Bond Exclusive normally offers an Annual Equivalent Rate (AER) of 4.65 percent.
However, this rate will increase by two percent for Stocks and Shares ISA customers who top up or transfer £5,000 or more, online, to a new or existing Virgin Money Stocks and Shares ISA between July 1 and September 30, 2024.
Commenting on the product, Jen Adams, chief commercial officer at Virgin Money Investments, said: “Investing is one of the best ways for people to increase wealth over the long term, but cash savings are also an important way to grow money.
“By giving our investment customers up to 6.65 percent on their cash savings, this rewarding offer provides the best of both to help our customers make the most of their money”.
To qualify for the bonus rate, customers will need to keep the ISA money invested until the savings account matures.
In the event that any money is withdrawn from the ISA between July 1, 2024, and the maturity date, customers will receive the standard fixed interest rate of 4.65 percent AER/Gross PA and the bonus interest will be lost.
Stocks and Shares ISAs are a tax-friendly way to invest in the stock market for the longer term, and Virgin Money customers can choose from three investment approaches to suit their risk appetite.
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These include the “Cautious Growth approach”, which Virgin Money said offers “lower risk” and “slower, steadier growth potential”.
The “Balanced Growth approach” is for customers who want to be a “little more adventurous than cautious”, but with a balance between risk and reward.
Finally, the “Adventurous Growth approach”, which offers “higher potential and higher risk”, is aimed at investors willing to accept more ups and downs along the way.
Commenting on the savings market, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “As inflation continues to soften its burden on savers’ pots, they may find that they can earn more cash in real terms, especially with recent fluctuations in the top rates offered. However, those investing in the longer-term will find that rates have remained steady.
“Both variable rate and fixed rate ISAs have seen an increase in average rates, whereas non ISA savings have seen a mixture of rises and falls across the board.”
Ms Eastell added: “It is as crucial as ever that savers keep monitoring their savings to ensure that they are being rewarded. In any case, savers should consider any relevant criteria to ensure the account is suitable for their needs.”
