Virgin Money has announced a current account switching offer in light of the cost of living crisis. The new current account offer offers switchers of Virgin Money current accounts – the Virgin Money M Account, M Plus Account and Club M Account – a bonus interest rate of 10 per cent gross fixed on current account balances up to £1,000 for one year from 1 July 2024 to 30 June 2025.
Both the Virgin Money M Plus account and the Club M account already offer an interest rate of 2.00% gross (variable) on current account balances up to £1,000. New customers switching to one of these accounts will receive an additional interest rate of 10% gross (fixed) on balances up to £1,000 for one year, which equates to 12% when the existing interest rate is added to the bonus.
A balance of £999 could theoretically earn account holders just under £120. The M Account does not normally pay interest on balances, but as the product is included in the conversion offer, someone who meets the eligibility criteria can receive the 10% bonus on balances up to £1,000, which could potentially earn £100 in interest. All three of Virgin Money’s current accounts have a linked savings account that offers 2.48% gross interest/2.50% AER (variable) on balances up to £25,000.
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New customers must open a Virgin Money current account online or in-store by May 31 and use the Current Account Switch Service (Cass) by June 26 to receive the bonus interest rate. This involves switching their account completely and taking two direct debits. Rachel Springall, financial expert at financial information website Moneyfacts, said: “Switching incentives are relatively sparse at the moment, so it’s exciting to see Virgin Money launch a tempting offer that could catch the attention of consumers looking to top up their savings.”
“As with many other current accounts, there is a cap on the amount that can earn interest, so savers will need to crunch the numbers to see if it’s worth it for them.” She added: “Those looking to maximise the interest they receive on larger deposits should consider short-term fixed-rate bonds, but those who want some flexibility can currently earn more than 5% on an easy-access account.”
