Virgin Money has launched a new two-year fixed rate Isa offering an interest rate of 1.15 per cent tax-free.
It has also launched a new two-year fixed rate bond offering the same rate.
Rajesh Ahuja, managing director of savings and current account at Virgin Money said: “Many savers don’t need instant access to their money and can take advantage of the higher returns available on fixed rate accounts.
“Our new two-year options offer customers the same rates for both the Isa and fixed rate bond products, ensuring Isa savers enjoy the full benefit of their tax-free allowance.”
Customers can transfer-in existing Isas into the Virgin Money Isa and additional deposits are accepted for 30 days following opening of the two-year account.
Accounts for the two-year bond can be opened with just £1 and additional deposits are accepted for as long as the account remains available to new customers.
Trystan Lewis, a chartered financial planner with Cheshire-based Griffin Wealth Management, said: “It is one of the highest paying rates available on a two-year basis.
“It is highly likely that inflation will outpace a return of 1.15 per cent that that will start to make people think about whether their savings are keeping up with inflation.”
