Virgin linked savings account reducing interest

MovingForwards

Virgin are reducing the interest rate on their current account linked savings account:

AER1 (0.50% gross2 per annum variable) on your savings balance up to 26 April 2021, interest paid quarterly. Please note, from 27 April 2021 the interest rate will change to 0.35% Gross/AER1 (0.35% gross2 per annum variable).

Plenty of advanced warning and still better than some savings accounts offered by banks.

wiseonesomeofthetime

Being discussed in Savings & Investments forum, but useful to repost here as it is a linked account.

I only opened my Virgin current account two days ago, so never got to actually use the savings account 🤷‍♂️

Wonder if Marcus will still be at 0.50% in two months time.

[Deleted User]

But the main current account still pays the 2%?

Shedman

Deleted_User said:

But the main current account still pays the 2%?

For now......

No mention of a rate drop for that yet in the FAQs on the accounts 

MovingForwards

@wiseonesomeofthetime I had a quick look before posting up. I wouldn't have started it had I had spotted another one.

@[Deleted User] there's no change to the current account. Even their original basic account is still paying me 0.10 interest, which is better than the ISA 0.01% from my main bank.

wiseonesomeofthetime

The Wine promotion finishes Sunday, so will be interesting to see what Virgin Money come up with to attract new customers post that promotion.

Will it be limited to that 2% interest on first £1,000 bait?

@MovingForwards - no, I entirely agree appropriate to post here. Many may not be aware yet. I only found out yesterday. Day after opening the current account. There was no mention of it by the Virgin staff when I spoke to them on the phone to open the account.

MovingForwards

The 2% tempted a lot of people as the account has been going for quite a while now. I'm sure it was around for about a year before I opened mine. @wiseonesomeofthetime

The wine was probably a cross promotion of the two brand areas, with the run up to Christmas it potentially saved people money, if they did buy wine for themselves / gifts.

jbrassy

Looks like I'll be shoveling all my money back into Marcus then.

wiseonesomeofthetime

MovingForwards said:

....
The wine was probably a cross promotion of the two brand areas, with the run up to Christmas it potentially saved people money, if they did buy wine for themselves / gifts.

I was not interested in the wine offer as the bottles promoted were not my type.

Opened mine for possible access to the exclusive cash ISA rate in April, if still a decent one in this current time.
My current building society offering 0.10% less atm, should I move it there, once my fixed rate expires.

jbrassy said:

Looks like I'll be shoveling all my money back into Marcus then.

Luckily, I still have Skipton @ 1.20% (for now)

pbartlett

can I just check - the exclusive cash isa is staying at 0.5% ?

wiseonesomeofthetime

Unconfirmed