Virgin money interest rates

alanwsg

I'm suffering from brain-fade, can someone confirm my maths?

I have a VM E-saver account, it says it's paying 1.58% net.
They're advertising a 1-year E- bond paying 1.91% gross.

It seems to me the easy access account is paying more interest than the fixed rate bond, is that right?
If so, why would anyone buy it unless they think interest rates are about to drop even further?

Another question, why quote net rates on my account but gross rates on their adverts and make me do the maths?

ColdIron

I have an early issue Virgin Easy Access E-Saver if this is the same one as you, mine quotes 1.6% Net. This account is not available to new applications. The current Issue 8 version only pays 1.51% Gross (1.2% Net)

The reason they quote Net is because everyone complained that they were being quoted a figure before tax and were being 'misled'. They can't win

alanwsg

ColdIron wrote: »

I have an early issue Virgin Easy Access E-Saver if this is the same one as you, mine quotes 1.6% Net. This account is not available to new applications. The current Issue 8 version only pays 1.51% Gross (1.2% Net)

I think the reason mine shows 1.58% net is because I have the interest paid monthly.
If it was paid annually, it would show 1.6% net.

But still - the fixed rate bond seems to pay less!

ColdIron

Yes the Fixed Rate E-Bond does pay less than your Easy Access E-Saver but it's a current product and yours isn't. In your case it makes sense to use what you already have but for anyone else looking for a new account the fixed rate at 1.9% is better than the easy access at 1.5%

Ifts

alanwsg wrote: »

But still - the fixed rate bond seems to pay less!

Its pretty much the going rate for a 1 year fixed rate bond:
http://moneyfacts.co.uk/savings/fixed-rate-bonds/

Shawbrook are currently offering 1.95% on their 1 year fixed rate bond (issue 13).

ColdIron

That said, it was 2.85% when I got it a couple of years ago then they announced Dec 2012 that rate would be dropping to 2.4% in Feb 2013. In June they announced another rate drop to 2% in Aug. So they could announce another drop in a few weeks for Feb again

nilrem_2

Well thanks to this thread I have been delighted to realise that I am getting more interest than I thought!

I noticed the 1.58% interest quoted on the top of my esaver account page and assumed that it was less 20% giving approx 1.26% not noticing the word Nett after it!

So thanks for the thread from me!

alanwsg

Didn't realize the interest rate I'm getting is no longer available,
Guess this is a bank that actually does reward customer loyalty!

opinions4u

alanwsg wrote: »

Didn't realize the interest rate I'm getting is no longer available,
Guess this is a bank that actually does reward customer loyalty!

Hahahahahahahahaha!

bigadaj

alanwsg wrote: »

Didn't realize the interest rate I'm getting is no longer available,
Guess this is a bank that actually does reward customer loyalty!

I'm not so sure it is actually rewarding customer loyalty as managing funding. I'm still getting 2.2% on my Coventry account! and have had several emails through over the last couple of years advising of interest rate reductions, but always toa. Level slightly above that available elsewhere.

I've assumed this is partly down to the fact they haven't accessed funding fro lending like the big boys have, though they could offer less and get big inflows if they wanted so maybe there is an element of loyalty.