Virgin Money increases interest on cash ISA to ‘excellent’ 5.45%

Virgin Money has boosted its position on the table of fixed cash ISAs with an interest rate of 5.45 percent and has earned an “excellent” rating from .

Cash ISAs come with a number of additional benefits, such as enabling savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).

ISAs that offer a fixed rate of interest can also help add another layer of certainty to saving, as it means the bank or building society cannot change the rate during the length of the term.

Savers can open Virgin Money’s One Year Fixed Rate Cash E-ISA (Issue 606) with a minimum deposit of £1 and interest can be paid monthly or annually.

This account can be opened online by UK residents aged 16 or over and only one account is allowed per customer.

READ MORE: Britons to ‘use 25 times rule’ to work out how much to save for comfy retirement

Withdrawals are permitted, however, these will be subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn, if made during the specified fixed term.

Savers with Virgin Money can also have access to special deals across the wider Virgin Group that can help people save on everyday essentials, as well as days out and holidays.

Commenting on the deal, Rachel Springall, finance expert at, said: “This week, Virgin Money has changed the issue numbers and increased the rates on its Fixed Rate Cash E-ISAs, including its one-year deal which secures a prominent position in its sector.”

Ms Springall said the deal may appeal to savers who want to utilise their ISA allowance and are happy to lock their cash away for a year.

Don’t miss…
Expert shares tips to ‘double’ the interest on your savings[EXPLAINED]
NS&I answers query about how to ‘unlock’ Premium Bonds account[INSIGHT]
Savings warning as millions lose out on thousands of pounds of interest[ANALYSIS]

She added: “Savers will also find a monthly interest option available, which may appeal to those looking to supplement their income. Overall, this deal earns an Excellent Moneyfacts product rating.”

While Virgin Money may be offering a more attractive rate for one-year fixed cash ISAs, it isn’t currently taking the top spot. Leeds BS One Year Fixed Rate Cash ISA (Issue 189) is offering an Annual Equivalent Rate (AER) of 5.5 percent.

The account can be opened with a minimum deposit of £100 and interest is paid on maturity of the account. Withdrawals are also permitted but will be subject to 60 days’ loss of interest.

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Zopa’s One Year Fixed Term Smart ISA pot falls just behind with an AER of 4.46 percent, and interest is paid monthly.

With Zopa, customers can split their ISA allowance across up to 20 easy access and fixed-term pots, all managed within the Zopa app. Withdrawals are permitted and savers can open an account with just £1.

To launch a Smart ISA, people need to have already opened a Zopa Smart Saver. They also must be aged 18 or over, be a UK resident and have a UK bank account that the account can be linked to.

Source: Read Full Article