You are here: Home - Saving & Banking - News -

Virgin Money launches digital current account with in-credit interest

0
Written by: Paloma Kubiak
12/12/2019
Virgin Money has launched a digital current account and app paying 0.5% interest on credit balances up to £2,000.

The new current account is available through the Virgin Money mobile app, online, telephone and in-store.

Customers will also benefit from a linked easy access savings account paying 1% on balances.

Virgin Money added that the account comes with budgeting, spending and savings tools and customers will also benefit from fee-free debit card and ATM transaction overseas as part of enhancements to the account planned for 2020.

Customers will also be able to pay in cheques electronically through the app using a smartphone camera and will have an Apple Pay & Google Pay enabled contactless debit card. The account charges 19.90% EAR on arranged and unarranged overdrafts.

This is its first offering under the revamped Virgin Money brand as it looks to “break the big banks’ stranglehold on the UK’s stagnant current account market.”

Fergus Murphy, group personal banking director for Virgin Money, said: “The launch of our new current account marks the start of an exciting journey to transform our offering to customers and disrupt the financial services market in the UK.

“The account, which includes a linked easy access savings account, gives customers complete control of their money, and includes helpful budgeting tools with the ability to create savings pots on their linked savings account, helping them achieve their savings goals.

“There’s plenty more to come as we improve the digital customer experience by introducing new functionality within the mobile app and offering even more value to customers through the introduction of other Virgin company rewards.”

How good is the new Virgin Money digital current account?

Rachel Springall, finance expert at data site Moneyfacts, said this is an exciting current account launch which may entice savers looking for a decent deal for their everyday banking, and to kick start their savings habit.

She said: “The run up to Christmas is likely to be an expensive period for many, so there could be consumers going into 2020 looking to rein in their spending and start afresh. Having an instant way to check all the outgoings and have tools to budget can make a big difference.

“Those who are thinking about taking advantage can also look forward to getting rewards next year too, but also may be enticed by the fee-free debit card due out in 2020 as well.”

Springall said Starling Bank is another alternative with a digital account as it pays both credit interest and charges a fair overdraft tariff too.

“As with any account, its important consumers weigh up all the charges and benefits before they commit.

“Digital current accounts are a fantastic choice for consumers who are looking to move away from the biggest high-street banks – especially if they are getting little to no reward for their loyalty,” she added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week