Virgin Money launches first savings accounts as Rock owner

Virgin Money has launched its first savings accounts since officially taking ownership of Northern Rock this January.

Given the bank previously offered ISA customers an interest rate of just 0.1% – compared to Northern Rock’s frequent appearance in the best buy tables – we were hoping for great things.

So has Virgin Money delivered?

Virgin Money is offering savers two new accounts: the Virgin Easy Access Saver and Virgin Easy Access Cash ISA. Both pay a yearly interest rate of 2.85% and require a minimum investment of £1, positioning Virgin Money in the top five in both categories, according to Moneyfacts.

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While Virgin Money has not swooped in and taken over as market leader, savers should note that its rate is not inflated by an introductory bonus like those above it in the best buy tables.

This means that savers will not suddenly be hit with a far less appealing rate once a year has passed – great news for those who do not regularly move their money around in search of the best deal.

Jayne-Anne Gadhia, chief executive officer at Virgin Money, said: ‘These new savings products are designed to be simple, fair and transparent. They have an attractive headline rate, without a bonus, offering good value for customers’.

‘There are no differences in rate whether the customer chooses an ISA or a standard savings account. What’s more, customers can choose to operate their account online, through a branch or over the telephone and still benefit from the same great rate,’ she added.

A spokesperson for Moneyfacts meanwhile said: ‘The fact that funds can be accessed without advance notice or penalty and transfers in are accepted should help to boost this deal’s appeal further’.

Virgin Money savers will also be fully covered under the Financial Services Compensation Scheme (FSCS), which means up to £85,000 of your money is protected should something go wrong.

However, anyone already with a Northern Rock account should be aware that Virgin Money’s new accounts fall under Northern Rock’s banking license – you'll see the new Virgin Accounts advertised on Northern Rock's website.