Virgin Money offers 12% interest on savings in 'brand-new' offer

To qualify, they must switch to one of the following accounts: Virgin Money M Account, M Plus Account and Club M Account.

Both the Virgin Money M Plus Account and Club M Account already offer an interest rate of 2.00 per cent gross/2.02 per cent AER (variable) on current account balances up to £1,000.

This equates to 12 per cent gross/12.68 per cent AER cumulatively, Virgin Money said.

Graeme Sands, head of personal banking at Virgin Money, said: “We know how important it is for savers to be able to make the most of their money in the current environment, which is why we’ve launched this brand-new switching offer with a 10 per cent bonus interest rate on balances up to £1,000.

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“We’re committed to helping our customers achieve their financial goals and want to empower them to boost their money in the way that works best for them, while also offering them a range of Virgin Money perks, such as fee-free spending abroad and cashback on their everyday spending.”

This latest deal comes after many high street banks withdrew their competitive interest rate savings accounts from the market.

All three of Virgin Money’s current accounts automatically come with a linked savings account.

This product is offering 2.48 per cent gross/2.50 per cent AER (variable) interest on balances of up to £25,000.

Customers will be able to transfer savings to and from their current account to the linked savings account using the Virgin Money banking app.

The current accounts also offer:

• £0 fees when using the card to spend abroad
• Cashback on everyday spending with Virgin Money Cashback
• Access to the Virgin Money mobile banking app
• Access to exclusive rates and offers across a range of Virgin Money savings products.

In order to be eligible for this deal, new customers must open a Virgin Money current account online or in branch by May 31.

Customers will need to fully switch their current account from another provider to one of Virgin Money’s three current account options.

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This will include transferring two direct debits using the 'Current Account Switch Service' by June 26 2024 to receive the bonus interest rate.

Speaking to GB News, Moneyfact's finance expert Rachel Springall said: " “Switching incentives are relatively barren at the moment, so it’s exciting to see Virgin Money launch an enticing offer, which may draw the attention from consumers looking to boost their savings.

“As with many other current accounts, there is a limit on the balance which can earn interest, so savers will need to crunch the numbers to see if it’s a worthy choice for them. However, the bonus 10% gross rate is fixed, but is only available to new M Account, M Plus Account, and Club M Account customers that meet Virgin Money’s set criteria.”

“Those looking to maximise the interest they earn on larger pots would be wise to consider short-term fixed rate bonds, but if they want some flexibility then they can earn more than 5% on an easy access account at the moment.”