How to earn 6.65% on your cash savings: Virgin Money’s new bonus offer explained

New and existing Virgin Money Stocks and Shares ISA customers can benefit from an exclusive bonus rate on their cash savings.

Virgin Money today launched a new 'bonus offer', granting its Stocks and Shares ISA customers exclusive access to a bonus rate on their cash savings. As a result, you could earn 6.65% AER with the provider’s 1 Year Fixed Rate E-Bond Exclusive. We explain how:

The offer explained

In order to get the bonus rate on your cash savings, you must first pay at least £5,000 into a new or existing Virgin Money Stocks and Shares ISA between 1 July and 30 September – either by debit card or ISA transfer.

You’ll then need to open Virgin Money’s 1 Year Fixed Rate E-Bond Exclusive savings account before 7 October 2024. While this account currently pays 4.65% AER, Stocks and Shares ISA customers who meet the above conditions will unlock a 2.00% AER bonus for the full term – boosting the rate to 6.65% AER.

It should be noted this bonus rate only applies to balances equivalent to the amount paid into your Stocks and Shares ISA during the qualifying period. For instance, if you invested £10,000, you’d earn 6.65% AER on deposits up to £10,000 held in the one-year fixed savings account – with the underlying rate of 4.65% AER applied to any higher amounts.

Similarly, you’d also receive the underlying rate if you were to withdraw funds from the Stocks and Shares ISA before the savings account matures; to obtain the bonus rate, you must therefore leave your money invested.

Is the offer worth it?

The bonus offer may appeal to savers looking to broaden their portfolio; according to Jen Adams, Chief Commercial Officer at Virgin Money, it “provides the best of both” to customers wanting to offset the unpredictability of investing by receiving guaranteed returns on a lump sum.

However, while Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, agreed the new offer “looks tantalising”, she encouraged those interested to carefully check the eligibility criteria and to take heed of the risks involved when investing.

“Those considering Stocks & Shares must keep in mind that past performance is never guaranteed to be reflected in future returns, so it’s crucial investors are comfortable with their attitude to risk”, she explained.

Risk averse savers may feel more comfortable exploring traditional savings accounts or cash ISAs, with many of the market-leading accounts in these sectors continuing to offer 5.00% AER or more.