Virgin Money's new 10% regular saver: Eligibility and benefits explained

Virgin Money has unveiled a regular saver offering an eye-catching double-digit interest rate.

The account allows savers to deposit up to £250 per month, with any additional funds not earning interest.

If a saver were to deposit £250 into this account every month for a year, they would accumulate £3,162.40 by the end of the term, with £162.40 being interest.

This deal is fixed until 31 July 2025, which is when the account matures.

So, who can access the Virgin 10% account?

This regular saver is exclusively available to customers who have held a Virgin Money current account since 4 December 2019.

Those with a current account originally opened with Clydesdale Bank or Yorkshire Bank, such as a Signature Current Account, are also eligible to open this new regular saver account.

How does the Virgin Money regular saver function?

Customers can deposit up to £250 per month for a year into the account and earn an interest rate of 10 per cent on their growing savings.

You have the option to skip months and if you're unable to save the full £250 in any given month, you can compensate by saving more in subsequent months.

Any interest paid by Virgin Money is not included in the monthly £250 limit.

The maximum amount on which customers can earn interest at the end of the 12-month fixed term is £3,000 - this does not include any interest added to the account.

Savers should be aware that interest is calculated on an increasing balance, with Virgin Money determining the amount of interest to pay at the end of each day based on the money in your account. Interest will be paid quarterly on the last working day in March, June, September, and December.

These regular savers are only worth considering if you're looking to develop a savings habit - if you have a lump sum of £3,000, an account offering around 5 per cent interest would yield a similar level of interest over the year.

So how does it compare to other top regular savers?

Principality Building Society offers an 8 per cent regular saver open to customers who are not already existing members of the Society. Savers can channel up to £200 a month into this account.

The rate is fixed for six months and after this period, a saver depositing £200 a month every month would have £1,227.53. If the balance in your account reaches £1,200, no further deposits can be made.

First Direct offers a regular saver paying 7 per cent, allowing savers to stash away up to £300 a month. A saver depositing the full £300 a month into this account would accumulate £3,736.50 after 12 months.

However, this account is only available to First Direct 1st Account customers.