Virgin Money launches new range of fixed rate bonds
Virgin Money is launching a new range of fixed rate bonds and fixed rate cash ISAs offering up to 2.75% gross/AER fixed.
The new fixed rate bond range includes a rate of 1.75% for a 1 year fixed rate bond, 2.20% fixed for 3 years and 2.75% fixed for 5 years. These savings bonds can be opened with just £1 and have an upper limit of £2m. Account holders will be able to make additional deposits will be accepted for as long as the bonds remain available to new customers. No withdrawals are allowed during the fixed rate period.
New cash ISA products include a 1 year fixed rate cash ISA offering a rate of 1.85%, a 2 year rate of 2.20% and a 5 year rate of 2.75%. These accounts accept transfers in from existing ISAs, and while the accounts are fixed rate, account holders do have the option to make withdrawals during the term subject to a charge. This amounts to 60 days loss of interest for the one-year product, 120 days for the three-year product and 180 days for the five-year product.
AER – Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. (As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time)