Virgin Money is increasing the variable interest rate on its Defined Access Isa to 1.51 per cent.
In addition to new accounts, the increased rate will be applied automatically to all existing issue four customer accounts yesterday (26 January).
Defined access accounts are designed for customers who only require occasional access to their savings.
Customers can make up to three withdrawals per calendar year and retain their interest rate of 1.51 per cent.
If a fourth withdrawal is made, the interest rate will revert to 0.75 per cent until the calendar year ends, at which point it will return automatically to the original rate and the number of withdrawals will reset to zero.
The Defined Access Isa issue four accepts transfers in from existing Isas.
Zack Hocking, head of savings at Virgin Money, said: “We’re delighted to make our Defined Access Isa issue four even more attractive for customers.
“The account is a great solution for those customers who only require occasional access to their savings, but want the security of knowing they can do so without notice if needed.”
Graeme Inglis, founder and director at Create and Prosper Financial Services in Kirkcaldy, said: “It is not terribly impressive really.
“For any client to achieve capital growth over and above inflation they will need to invest in some sort of asset-backed investment like shares, bonds, gilts. It’s laudable the rate has inreased but it still isn’t attractive.”
