Virgin Money tries to woo savers with better rates ahead of ISA changes

27th June 2014

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With the imminent launch of New ISAs, providers are trying to tempt savers with better rates and easier access to their savings.

Ahead of the introduction of New ISAs (Nisas) on 1 July, which will allow savers to put £15,000 a year into any combination of stocks and shares or cash ISAs, including putting the full amount in just cash or just stocks and shares, Virgin Money has launched a market-leading rate on an Easy Access ISA.

The Easy Access ISA is offering 1.5% with no restrictions on accessing the money and can be opened with just £1 and transfers in are accepted.

It has also launched new issues of its fixed rate ISAs and bonds with increased rates. Both one-year ISAs and bonds will pay 1.76% and five year ISAs and bonds will pay 3%.

The one-year ISA deal is the best on the market but Punjab National Bank is offering a better rate on one-year bonds at 2%.

The five year fixed rate ISA is also the best on the market but the bond is bettered by Vanquis Bank which is offering 3.11%.

Anthony Mooney, Virgin Money financial services director, said the Easy Access ISA offered a leading rate with no restrictions and ‘no gimmicks such as short-term bonuses or access restrictions’.

‘It’s simple with no catches – it just offers a straightforward, good value for money product,’ he said.

He said that the average person has cash savings of £6,230, well below the new £15,000 limit eing introduced.

‘Our research shows 75% of people have cash savings of less than £15,000, so with the ISA limit increase taking effect on 1 July, for most people a simple, straightforward ISA is the only savings account they need, with the added benefit of giving them tax-free returns on all of their savings,’ he said.

 

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