Virgin Money offers 10% bonus rate for current account switchers

The bonus rate will be fixed on current account balances up to £1,000 for a year.

Virgin Money has launched a new current account switching offer (Rui Vieira/PA) (PA Archive)

Virgin Money has launched a new current account switching offer, at a time when several cash sweeteners for people to move their bank have vanished.

The new current account offer gives switchers to Virgin Money’s current accounts – the Virgin Money M Account, M Plus Account and Club M Account – a bonus interest rate of 10% gross fixed on current account balances up to £1,000 for a year from July 1 2024 to June 30 2025.

Both the Virgin Money M Plus Account and Club M Account already offer an interest rate of 2.00% gross (variable) on current account balances up to £1,000.

New customers switching to either one of these accounts will have an additional 10% rate gross (fixed) on balances up to £1,000 for a year, equating to 12% when the existing rate is added to the bonus.

The M Account does not normally pay in-credit interest but, because the product is in the switching offer, someone meeting the eligibility criteria would qualify for the 10% bonus on balances up to £1,000, potentially generating £100 in interest.

All three of Virgin Money’s current accounts have a linked savings account, offering 2.48% gross/2.50% AER (variable) interest on balances of up to £25,000.

Switching incentives are relatively barren at the moment

Rachel Springall, Moneyfacts

The switching offer is subject to terms and conditions.

New customers must open a Virgin Money current account online or in store by May 31 and need to fully switch their account, along with two direct debits, using the Current Account Switch Service (Cass) by June 26 to receive the bonus rate.

Several current account providers have recently ended their offers of free cash to switch.

A £175 switching offer from First Direct ended in April. Some banks had previously been offering as much as £200 to switch, before withdrawing their incentives.

Rachel Springall, a finance expert at financial information website Moneyfacts, said: “Switching incentives are relatively barren at the moment, so it’s exciting to see Virgin Money launch an enticing offer, which may draw the attention from consumers looking to boost their savings.

“As with many other current accounts, there is a limit on the balance which can earn interest, so savers will need to crunch the numbers to see if it’s a worthy choice for them.”

She added: “Those looking to maximise the interest they earn on larger pots would be wise to consider short-term fixed-rate bonds, but if they want some flexibility then they can earn more than 5% on an easy access account at the moment.”