Virgin Money has launched a high-interest current accounts that pays better rates than many savings accounts.
A high-interest account is a current account that pays you a competitive rate of interest on your in-credit balance.
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The new Virgin Money account, Club M Account, allows customers to earn 2.00% gross on deposits of up to £1,000.
It comes with a host of incentives including gadget and accessory insurance, mobile phone insurance, vehicle breakdown cover, worldwide travel insurance.
It automatically opens a linked Virgin Money Club M Saver Account, which currently offers a chart-topping rate of 0.50% gross.
When weighing up the benefits of this account, however, consumers should keep in mind that it charges a monthly fee of £14.50. Therefore, it may only be worthwhile for those who would be able to make full use of the incentives offered.
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By GlobalDataYou may only open a Club M Saver if you already have a Club M Account with the bank in the same name. The Club M Saver will stay open, as long as the Club M Account is maintained as described in the Terms.
Virgin Money M Plus account
Consumers who would not make full use of the incentives may want to consider Virgin Money’s M Plus Account.
This account also offers 2.00% gross on deposits of up to £1,000 but does not charge a monthly fee.
The account does not have the incentives offered by the Club M Account, but it does have a switching incentive that enables customers to receive a 12-bottle case of wine from Virgin Wines.
It also let customers donate £50 to charity when they switch to the account using the Current Account Switching Service (CASS).
Other high-interest current account
Apart from Virgin Money, the only other provider offering a high interest current account for adults is Nationwide Building Society, which offers 2.00% gross on balances of up to £1,500 for the first 12 months on its FlexDirect – Funded account.
Consumers who deposited the full £1,500 over the 12-month period would earn £30 in interest.
The account does not charge a monthly fee, but customers must deposit a minimum of £1,000 into the account each month.
Although this account does not have the incentives offered by the Virgin Money accounts, it does not charge a monthly fee and consumers can, potentially, earn higher interest on this account due to the maximum deposit limit being higher.
