Virgin Money: bank offers 10% bonus interest rates current account switching deal - all the details

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Several current account providers have recently ended their offers of free cash to switch

A new current account switching offer has been launched by Virgin Money, at a time when many cash incentives for customers to switch banks have vanished.

The new current account promotion gives a 10% gross fixed bonus interest rate to those switching to any of their current account options - the Virgin Money M Account, M Plus Account, and Club M Account.

The offer applies to current account balances up to £1,000 and is valid for one year, starting from 1 July 2024 until 30 June 2025.

An interest rate of 2.00% gross (variable) on current account balances up to £1,000 is already available through the Virgin Money M Plus Account and Club M Account.

New customers switching to either one of these accounts will have an additional 10% rate gross (fixed) on balances up to £1,000 for a year, equating to 12% when the existing rate is added to the bonus.

The M Account does not normally pay in-credit interest but, because the product is in the switching offer, someone meeting the eligibility criteria would qualify for the 10% bonus on balances up to £1,000, potentially generating £100 in interest.

All three of Virgin Money’s current accounts have a linked savings account, offering 2.48% gross/2.50% AER (variable) interest on balances of up to £25,000. The switching offer is subject to terms and conditions.

New customers must open a Virgin Money current account online or in store by May 31 and need to fully switch their account, along with two direct debits, using the Current Account Switch Service (Cass) by June 26 to receive the bonus rate.

Several current account providers have recently ended their offers of free cash to switch. A £175 switching offer from First Direct ended in April. Some banks had previously been offering as much as £200 to switch, before withdrawing their incentives.

Rachel Springall, a finance expert at financial information website Moneyfacts, said: “Switching incentives are relatively barren at the moment, so it’s exciting to see Virgin Money launch an enticing offer, which may draw the attention from consumers looking to boost their savings.

“As with many other current accounts, there is a limit on the balance which can earn interest, so savers will need to crunch the numbers to see if it’s a worthy choice for them.”

She added: “Those looking to maximise the interest they earn on larger pots would be wise to consider short-term fixed-rate bonds, but if they want some flexibility then they can earn more than 5% on an easy access account at the moment.”

Last month, the latest industry data revealed that Nationwide Building Society, Barclays and Lloyds Bank experienced significant growth in customer numbers utilising the Current Account Switch Service (Cass) during the last quarter of 2023.

From 1 October to 31 December, Nationwide achieved a net gain of 163,363 full account switches, while Barclays and Lloyds secured 12,823 and 5,800 net gains respectively, as reported by Cass.

Conversely, NatWest suffered 43,182 net switching losses, followed by RBS with 11,621 losses, Halifax with 41,144 losses, and Santander with 34,581 losses.

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