Martin Lewis shares tips for earning more on savings
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Banks and building societies have been increasing interest rates across accounts to offer customers higher returns while finances are squeezed by high inflation rates. Virgin Money is the most recent to have upped interest on its easy access cash ISA account to a market-leading three percent.
Cash ISAs are a popular type of savings account amongst Britons, as they come with additional perks and benefits.
Optimally, these accounts enable savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA), and they typically offer higher returns than other savings accounts.
Generally, ISAs prohibit early withdrawals but with an easy access account, savers are usually afforded instant access to their cash with minimal restrictions.
While banks are increasingly competing for higher rates to attract customers, Virgin Money is currently topping the board with its new Easy Access Cash ISA Exclusive account.
After upping the rate for the second time in two months, savers will have access to the new three percent Annual Equivalent Rate (AER) from Friday, November 4.
The rate increase follows the Bank of England’s latest Base Rate increase to three percent – the biggest hike in more than three decades – and offers a market-leading rate for customers looking to maximise the return on their savings.
The account is only available to eligible current account customers. This includes those from Virgin Money, Clydesdale Bank or Yorkshire Bank.
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However, it’s not available for customers with a Virgin Money’s Essential Current Account or those who have opened an account with Northern Rock.
The interest rate for this account is calculated daily and applied to the balance on the account on the last working day of December each year. The rate increase will be automatically passed on to existing customers.
The Easy Access Cash ISA Exclusive allows customers to top up and take money out whenever they like, and the account can be easily managed by registering for online and telephone banking.
Hugh Chater, chief commercial officer at Virgin Money, said: “Increasing the interest rate on our Easy Access Cash ISA Exclusive means Virgin Money customers can make their savings work harder.
“We know lots of people are feeling the pinch right now, which is why we’re pleased to offer this new rate to give both new and existing customers a savings boost.”
Customers need to have or open a Virgin Money Current Account in order to apply for a Virgin Money Easy Access Cash ISA Exclusive.
Savers can invest up to £20,000 in the current tax year, and there’s no limit on previous years’ ISA transfers.
However, it should be noted, people can only subscribe to one Cash ISA in any tax year.
People who want to transfer their current year’s subscriptions will have to transfer the full amount.
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