Virgin Money linked savings account

castle96

I want to put £25k into several avings a/cs. Do I pay into curreent a/c first then transfer, or directly into savings a/c? (All Faster pmts)

dc_scotland

I have now received my latest statement via the app.  It shows both bands of the interest rate:
0 - £24999  1%
£25000+  0.50%

where_are_we

I have put my money inD

castle96 said:

I want to put £25k into several avings a/cs. Do I pay into curreent a/c first then transfer, or directly into savings a/c? (All Faster pmts)

I have put my money directly into the Virgin Money Plus Saver (one transaction instead of two). Put a small amount in first to check it has gone in correctly (Confirmation of payee was rejected but I overrode the warning). Then your payment mandate is all set up for the larger amounts and for any future payments you will not need to log in to Virgin Money to do a second transaction  as would be the case if you chose to make your payment to the current account. Might be best to break up the £25K into smaller amounts. My bank`s security stopped my second £10k payment. It needed a lengthy telephone call to get it accepted.

gc747

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

typistretired

The interest is paid quarterly but interest is added daily behind the scenes. The first interest payment should be end of March as paid end of March, June, September and December

badger09

gc747 said:

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

NO

Virgin is 1% which is more than Atom, which is 0.75%. Those rates will be calculated on your balance every day, so whether the interest is paid quarterly or monthly is irrelevant. 

Ella_fella

gc747 said:

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

No you'll get 3 months interest in one hit with the Virgin saver as opposed to getting one months interest at a time with Atom. 

gc747

Ella_fella said:

gc747 said:

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

No you'll get 3 months interest in one hit with the Virgin saver as opposed to getting one months interest at a time with Atom. 

Thank you, sorry am a bit new to all this. 

Thanks for all subsequent replies off everyone! 

Daliah

gc747 said:

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

@gc747 all providers must, by the rules of their licence, state the interest they pay as AER - Annual Equivalent Rate. This means we, as consumers, can easily compare like with like.

The AER has no influence on when the interest gets paid - some providers pay interest monthly, some quarterly, some annually, and all of them would pay it on account closure of an instant access account. Interest is calculated daily, based on the balance of the account on the end of a day. The daily interest amount is balance times AER divided by 365 (366 in leap years)

pafpcg

Daliah said:

gc747 said:

Spoke to their online chat earlier, it’s is indeed 1% on their m plus saver. However, just as I was about to transfer my savings over realised it’s 1% paid quarterly… am I being silly or does that mean I would get significantly less interest than in atom which is paying 0.75% monthly? Any help please?!

@gc747 all providers must, by the rules of their licence, state the interest they pay as AER - Annual Equivalent Rate. This means we, as consumers, can easily compare like with like.

The AER has no influence on when the interest gets paid - some providers pay interest monthly, some quarterly, some annually, and all of them would pay it on account closure of an instant access account. Interest is calculated daily, based on the balance of the account on the end of a day. The daily interest amount is balance times AER divided by 365 (366 in leap years)

Err, are you sure about that?  The AER rate where interest is added to the account more frequently than annually assumes compound interest on any interest paid.  

Those of us who cream off monthly interest payments every month to maintain the account balance at the maximum and no more, don't actually get AER, but in the context of the original question, the amount paid at each payment date (whether daily, monthly, quarterly or annually), if left in the account, will aggregate to match the AER.