Virgin Money launches 10% common saver

Virgin Money has launched a regular saver paying a headline-grabbing double digit interest rate.

Savers can tuck away a maxium of £250 a month in the account. You can save more in the account but you will not earn interest on anything over £250. 

A saver putting £250 in this account every month for 12 months would have £3,162.40 by the end of the term – £162.40 being interest.  

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

Who can get the Virgin 10% account? 

The regular saver is only open to customers who have had a Virgin Money current account since 4 December 2019.

Customers who have a current account that was originally opened with Clydesdale Bank or Yorkshire Bank, such as a Signature Current Account, will also be able to open the new regular saver account.

How does the Virgin Money regular saver work?  

Customers will be able to put up to £250 a month for 12 months in the account and earn a rate of 10 per cent on their savings as it grows.

You can skip months and if you do not manage to save the full £250 in any month, you can pay more in the next or future months.

Any interest Virgin Money pays customers is not counted towards the monthly £250 limit.

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

Savers need to be aware that the interest is calculated on a growing balance. Virgin Money works out how much interest to pay you at the end of each day. 

This is 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 opening if you want to get in the savings habit – if you have a lump sum of £3,000, to get similar interest over the year, an account paying around 5 per cent will give a similar level of interest

Sums worked out using the This is Money savings calculator. 

How does it stack up to other top regular savers?  

First Direct has a regular saver paying 7 per cent. This account allows savers to tuck away up to £300 a month. 

A saver putting the full £300 a month in this account would have £3,736.50 after 12 months. 

The account is only available to First Direct 1st Account customers. 

Principality Building Society has an 8 per cent regular saver which is open to customers who are not already existing members of the Society. 

Savers can funnell up to £200 a month into this account. The rate is fixed for six months and after this time, a saver would have £1,227.53 if they put £200 a month into the account every month. 

If the amount in your the account reaches £1,200, you cannot pay any more money in to the account.