Virgin Money raises interest rate on account to ‘competitive’

The bank confirmed earlier today it was increasing the rate of its easy access savings account to a “competitive” level. Savers will get a boost to 2.52 percent if they use the product which represents the fifth rise to the linked savings rate for customers in 2022. This comes amid a wave of interest rate hikes from high street banks and building societies which have arisen following the Bank of England’s decision over the base rate.

As of December 22, 2022, the linked savings rate has increased from 2.02 percent to 2.52 percent AER.

This will benefit both new and existing customers with the Virgin Money product on balances up to £25,000.

It should be noted that the interest rate will jump to 2.02 percent AER from 1.51 percent AER balances above £25,000.

On top of this, all rates are variable and this increase is automatically passed on to existing customers.

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Hugh Charter, the chief commercial officer at Virgin Money, outlined why the bank is opting to offer this “competitive” interest rate at this time.

He explained: “We know that times are tough at the moment, and we want to make sure new and existing customers are able to make the most of their savings.

“Heading into the new year, this competitive rate offers a boost to savings with the benefit of an easy access account.”

Among the Virgin Money current accounts which have an automatic linked savings rate, include the M Plus Account, Club M Account and M Account.

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Due to this, each savings account is accessible for customers who want to easily manage their money and transfer savings to and from their current account.

This most recent decision by Virgin Money comes soon after the most recent Bank of England base rate increase.

Earlier this month, the central bank’s Monetary Policy Committee (MPC) voted in favour of hiking the base rate to 3.5 percent.

With this move, this is the ninth consecutive rise by the Bank of England since December 2021 and the base rate is now at its highest level for 14 years.

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More to follow…