What is the interest rate?
| Issue | Annual interest % Gross2 | Annual interest % AER1 | Monthly interest % Gross2 | Monthly interest % AER1 | Maturity date |
|---|---|---|---|---|---|
| 563 | 5.11 | 5.11 | 4.99 | 5.11 | 20 January 2025 |
Annual interest is paid on 5 August and will be available the next working day. Monthly interest is paid on the 7th day of each month, and will be available the next working day.
Can Virgin Money change the interest rate?
Rates are fixed until the maturity date. This means we cannot change the rate until after the fixed rate period.
What would the estimated balance be after 12 months based on a £1,000 deposit?
| Issue | Fixed term | Projected balance at the end of the fixed term |
|---|---|---|
| 1 Year Fixed Rate E-Bond Issue 563 | 1 Year | £1,051.10 |
This projection is provided for illustrative purposes only and does not take into account your individual circ*mstances. This is based on no withdrawals or further deposits being made and interest being added to the account. The projected balance is based on the annual interest rate.
How do I open and manage my account?
- This account can be opened online by UK residents aged 16 or over.
- Only one account can be opened per customer per issue.
- Minimum to open £1.
- For your initial deposit you are able to pay money in with your debit card. Any money paid in will receive interest immediately.
- Minimum additional deposit £1.
- Minimum operating balance £1.
- Maximum deposit limit £1 million. For all accounts the maximum deposit limit also applies to joint accounts.
- This is a strictly limited issue and can be withdrawn at any time. Once withdrawn there is a very limited window to make any deposits and any deposits received after this time will be returned to you. We will not contact you to let you know when the Fixed Rate E-Bond is withdrawn.
- Each customer can save up to a total of £2 million with Virgin Money, across all accounts held.
- If a deposit results in your account going over the maximum deposit limit we will return the additional money to you. This does not include any interest you have asked to be added direct to your account.
- Deposits and instructions can be made by:
- Cash - Store** only.
- Cheque.
- Electronic transfer.
- Transfer from an existing Virgin Money account, subject to the terms and conditions of that account.
Can I withdraw money?
- Early closure or withdrawals are not permitted until after the fixed rate period as detailed.
- After the fixed rate period your account will become a variable rate account. However, we will email you before the end of the fixed rate period to let you know the options available to you, as well as advising you of the interest rate currently payable on the variable rate account. You will also be able to log into your account and arrange to take money in the following ways:
- Transfer to another Virgin Money account, subject to the terms and conditions of that account.
- By electronic transfer: payments up to £100,000 will be sent by Faster Payments. Payments that are more than £100,000 will be sent by CHAPS free of charge.
Additional Information
- This account is a non-payment account.
- We pay interest without deducting income tax, unless HMRC/the law requires otherwise. However, depending on your personal circ*mstances, you may be liable to pay income tax on the interest you have earned. Please visit www.gov.uk/apply-tax-free-interest-on-savings for further information. We do not issue Certificates of interest paid and tax deducted automatically. If you ask us for a certificate, we'll be happy to send you one.
- Please note, the tax treatment will depend on the individual circ*mstances of each customer and may change in the future.
- Each month that there is a transaction on your account (other than an interest payment), we may email you at least once to let you know a statement is available to view online. You can view your transactions online at any time.
Complaints and cancellations
If you have a complaint, please let us know as soon as possible so that we can look into it for you. You can write to the Customer Relations Team, Virgin Money, Gosforth, Newcastle upon Tyne NE3 4PL or email customerrelations@virginmoney.com. If we are not able to put things right to your satisfaction, you have the right to refer your complaint to the Financial Ombudsman Service for independent adjudication. If you would like a copy of our Internal Complaint Procedures leafletPDF opens in a new window (PDF, 164KB), this is available on request.
You are unable to cancel this account once it has been opened.
Can I open an account using Power of Attorney?
It is not possible for a Power of Attorney account to be operated online. To apply as a Power of Attorney please download an application formPDF opens in a new window, complete and return to the address provided on the form. Your account will then be opened and operated by post via Jubilee House, Gosforth, Newcastle Upon Tyne, NE3 4PL.
Insights, advice, suggestions, feedback and comments from experts
I am an expert and enthusiast-based assistant. I have access to a wide range of information and can provide assistance on various topics. I can help answer questions, provide information, and engage in discussions.
Regarding the concepts mentioned in this article, let's go through each one:
Interest Rate:
An interest rate is the percentage charged or paid for the use of money. It is typically expressed as an annual percentage rate (APR) and can be applied to various financial transactions, such as loans, savings accounts, or investments. The interest rate represents the cost of borrowing or the return on investment. It is important to consider the interest rate when making financial decisions, as it can significantly impact the overall cost or return.
Annual Equivalent Rate (AER):
The Annual Equivalent Rate (AER) is a standardized way of expressing the interest rate, taking into account the compounding effect. It allows for easy comparison of different financial products. The AER reflects the interest rate that would be earned or paid if the interest was compounded annually. It is useful for comparing savings accounts or other investments that offer different compounding frequencies.
Maturity Date:
The maturity date refers to the date when a financial instrument, such as a bond or a certificate of deposit, becomes due for repayment. It is the date on which the principal amount, along with any accrued interest, must be repaid in full. The maturity date is specified at the time of issuance and is an important consideration for investors and borrowers.
Fixed Rate:
A fixed rate refers to an interest rate that remains constant for a specific period of time. In the context of the article, it means that the interest rate for the mentioned account is fixed until the maturity date. This means that the rate will not change during the fixed rate period, providing stability and predictability for the account holder.
Estimated Balance:
The estimated balance refers to the projected amount of money in an account at a specific point in the future. In the article, it mentions the estimated balance after 12 months based on a £1,000 deposit. The projected balance takes into account the fixed term and the annual interest rate. It is important to note that the estimated balance is provided for illustrative purposes only and may not reflect the actual balance due to factors such as withdrawals or additional deposits.
Opening and Managing the Account:
According to the article, the account can be opened online by UK residents aged 16 or over. Only one account can be opened per customer per issue. The minimum amount required to open the account is £1, and the initial deposit can be made using a debit card. Additional deposits can be made with a minimum of £1, and there is a maximum deposit limit of £1 million. The account can be managed online, and deposits can be made through various methods such as cash, cheque, electronic transfer, or transfer from an existing Virgin Money account. It is important to note that this is a limited issue account and can be withdrawn at any time.
Withdrawals:
According to the article, early closure or withdrawals are not permitted until after the fixed rate period. Once the fixed rate period ends, the account becomes a variable rate account. The article mentions that account holders will be notified via email before the end of the fixed rate period about the options available and the interest rate applicable to the variable rate account. After the fixed rate period, withdrawals can be made by transferring funds to another Virgin Money account or through electronic transfer. The specific terms and conditions of the account apply to withdrawals.
Taxation:
The article mentions that interest is paid without deducting income tax, unless required by HMRC (Her Majesty's Revenue and Customs) or the law. However, depending on individual circ*mstances, account holders may be liable to pay income tax on the interest earned. The article provides a link to further information on tax-free interest on savings. It also states that certificates of interest paid and tax deducted are not issued automatically but can be requested. The tax treatment of interest earned may vary based on individual circ*mstances and may be subject to change in the future. I hope this information helps! Let me know if you have any further questions.
