Virgin One Account

dewbers

Hello everyone,

New poster so bear with me. I have been looking into a lot of info concerning the Virgin one account, what I can't seem to understand is, why everyone is not doing this if it is as good as it appears! We have savings to offset but want flexibility on withdrawals. It would seem that if we were to withdraw a lump sum from our savings, our interest would soar again and out mortgage term would increase. Does anyone know any more about this account or have any experiences they would be willing to share? Many thanks :j

Joe_Bloggs

Welcome to the forum.
There are much better offset deals out there. The virgin one account appears to have more advertising than all of the others put together.
The 5.7% rate is a non starter when you can get term of mortgage offset trackers as low as 4.95% for instance.
Without an offset the interest on money you have in savings will be taxed at a rate according to income unless it has a tax free status such as an ISA.
In my case I used my savings as a deposit and could no longer benefit from the offset setup. I did try stoozing for a while but that can mess up ones credit record, even if done to perfection.
If you are a higher rate tax payer and your ISA options are maxed out and you have lots of savings or temporary excess funds without a tax free savings wrapper then offsets at a competitive rate of interest are worth considering.
J_B.

herbiesjp

PLease note that the One Account has 2 different options:

1) Flexible MOrtgage OPtion - not full current account but can offset savings - rates a lot lower than 5.7%

2) Full offset account - includes offsetting of current account and savings.


So as ever, it is difficult to say which would be best for you in your situation as it depends on what benefits you want from either option and your own particular circumstances