Virgin Money Launches High Interest Bank Account | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 30/03/2021

Virgin Money has launched a high interest bank account that could be an attractive option for savers struggling to find a competitive rate in the savings charts. Here we look at whether the account is worth opening and the alternative high interest bank accounts currently available.

The new Virgin Money account, Club M Account, allows customers to earn 2.00% gross on deposits of up to £1,000, which if the maximum amount was deposited would result in £20 earned in interest over a one-year period. This account also comes with a host of incentives including gadget and accessory insurance, mobile phone insurance, vehicle breakdown cover, worldwide travel insurance, and automatically opens a linked Virgin Money Club M Saver Account, which currently offers a chart-topping rate of 0.50% gross. When weighing up the benefits of this account, however, consumers should keep in mind that it charges a monthly fee of £14.50, so it may only be worthwhile for those who would be able to make full use of the incentives offered.

Consumers who would not make full use of the incentives may want to consider Virgin Money’s M Plus Account. This account also offers 2.00% gross on deposits of up to £1,000 but does not charge a monthly fee. The account does not have the incentives offered by the Club M Account, but it does have a switching incentive that enables customers to receive a 12-bottle case of wine from Virgin Wines and donate £50 to charity when they switch to the account using the Current Account Switching Service (CASS).

Consumers looking to earn cashback or rewards by switching bank accounts can see all the current switching offers available here.

Alternative high interest current account

Apart from Virgin Money, the only other provider offering a high interest current account for adults is Nationwide Building Society, which offers 2.00% gross on balances of up to £1,500 for the first 12 months on its FlexDirect – Funded account. Consumers who deposited the full £1,500 over the 12-month period would earn £30 in interest. The account does not charge a monthly fee, but customers must deposit a minimum of £1,000 into the account each month. Although this account does not have the incentives offered by the Virgin Money accounts, it does not charge a monthly fee and consumers can, potentially, earn higher interest on this account due to the maximum deposit limit being higher.

Disclaimer

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