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Virgin Money launches digital current account with in-credit interest

Paloma Kubiak
Written By:
Paloma Kubiak

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.