Virgin Money unveils fixed Isas

Virgin Money unveils fixed Isas

Virgin Money has launched fixed and variable rate Isas, which it has described as offering competitive rates of interest.

Key features

■ The one-year fixed-rate Isa offers an interest rate of 1.81 per cent AER. This is available for one year.

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Transfers in are accepted, with additional deposits for 30 days after opening the account.

■ The Defined Access Isa Issue 3 offers variable interest of 1.56 per cent AER.

Customers can make three withdrawals each year and retain the 1.56 per cent rate. 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 to the original rate and the number of withdrawals will reset to zero.

■ The new accounts are available from 1 October 2015 through Virgin Money stores, online, over the telephone and by post.

Adviser verdict

Anna Bowes, director of Bath-based independent savings advice site, said: “Issue 3 paying 1.56 per cent, up from the previous issue which was paying 1.51 per cent AER, is a competitive easy-access Isa and is in second place in our best buy tables, behind the Nationwide Flexclusive ISA (Issue 9) which is paying 1.60 per cent AER.

“However, the latter is only available for those who hold a Flex current account, whereas the Virgin Isa is available for all.”