Help please re: Virgin Money Fixed Isa's

Silverweed

Have tried sending secure messages to Virgin but keep getting logged out and have given up waiting for tel call to be answered after queuing for around 40 mins - so thought I'd ask here in case anyone can help please.

Do Virgin pay the interest on fixed Isa's out to your nominated a/c when opting for it to be paid monthly?

Are Virgin part of confirmation of payee scheme?

Thanks in advance.

steveksullivan

Silverweed said:

Do Virgin pay the interest on fixed Isa's out to your nominated a/c when opting for it to be paid monthly?

They do pay interest away monthly BUT the option to pay away ISNT part of the application process. Once the account is open you have to log in and select the account to pay it to.

This caught me out for a second time with my recently opened account and I now have the first months interest stuck in the ISA !  (first time was a couple of years ago and I had forgotten ....!!)

You may also want to read my posts (and others ....)  in the other VIRGIN cash ISA thread about their appalling customer service at the moment - not neccessarily trying to put you off ..... just be aware if you are likely to need their CS at all.

If its a straightforward new account or external ISA transfer you may well be OK......

xylophone

You may also want to read my posts (and others ....)  in the other VIRGIN cash ISA thread about their appalling customer service at the moment - not necessarily trying to put you off ..... just be aware if you are likely to need their CS at all.If its a straightforward new account or external ISA transfer you may well be OK......

Indeed - see

https://forums.moneysavingexpert.com/discussion/comment/79646612/#Comment_79646612

xylophone

But they are on the crest of a wave......

https://www.thisismoney.co.uk/money/markets/article-11451789/Virgin-Money-shares-surge-rising-rates-provide-healthy-growth-profits.html

refluxer

Would monthly interest paid out of an ISA be subject to tax or is it just counted like a withdrawal in that respect ?

cricidmuslibale

refluxer said:

Would monthly interest paid out of an ISA not be subject to tax or is it just counted like a withdrawal in that respect ?

I would have thought that as soon as monthly interest paid out of an ISA arrives in a non ISA account of any description, then this interest would be treated like the rest of the money in the non ISA account and thus become taxable, although it would be taxed at 0% if first any Personal Allowance was still unused, if not then if any Savings Starter Rate was still available, and if not then if any of the Personal Savings Allowance was still unused by that particular saver.

Silverweed

steveksullivan said:

Silverweed said:

Do Virgin pay the interest on fixed Isa's out to your nominated a/c when opting for it to be paid monthly?

They do pay interest away monthly BUT the option to pay away ISNT part of the application process. Once the account is open you have to log in and select the account to pay it to.

This caught me out for a second time with my recently opened account and I now have the first months interest stuck in the ISA !  (first time was a couple of years ago and I had forgotten ....!!)

You may also want to read my posts (and others ....)  in the other VIRGIN cash ISA thread about their appalling customer service at the moment - not neccessarily trying to put you off ..... just be aware if you are likely to need their CS at all.

If its a straightforward new account or external ISA transfer you may well be OK......

Thanks - I have logged in again and can see interest is set at monthly but I can't see the destination account or a way to select it.

Will have to try calling them again as although it lets me draft a secure message, once I hit send it logs me out and when I log back in my message seems to have disappeared.

One of the main reasons I liked this Virgin Fixed Isa was due to their lower penalty in case I needed to access funds before end of the term but I agree their customer service is quite frustrating at the mo!

Albermarle

cricidmuslibale said:

refluxer said:

Would monthly interest paid out of an ISA not be subject to tax or is it just counted like a withdrawal in that respect ?

I would have thought that as soon as monthly interest paid out of an ISA arrives in a non ISA account of any description, then this interest would be treated like the rest of the money in the non ISA account and thus become taxable, although it would be taxed at 0% if first any Personal Allowance was still unused, if not then if any Savings Starter Rate was still available, and if not then if any of the Personal Savings Allowance was still unused by that particular saver.

If that was the case, then there would be no point saving in an ISA in the first place?

steveksullivan

Silverweed said:

Thanks - I have logged in again and can see interest is set at monthly but I can't see the destination account or a way to select it.

Click on 'View account'

Once into the account, click on 'amend details' right hand side

You should have options to 'amend nominated account' and also 'amend interest account details'

under there you should be able to select to have it paid away to your nominatedc account.

Silverweed

steveksullivan said:

Silverweed said:

Thanks - I have logged in again and can see interest is set at monthly but I can't see the destination account or a way to select it.

Click on 'View account'

Once into the account, click on 'amend details' right hand side

You should have options to 'amend nominated account' and also 'amend interest account details'

under there you should be able to select to have it paid away to your nominatedc account.

You are an absolute star!

It worked! Thanks again.

cricidmuslibale

Albermarle said:

cricidmuslibale said:

refluxer said:

Would monthly interest paid out of an ISA not be subject to tax or is it just counted like a withdrawal in that respect ?

I would have thought that as soon as monthly interest paid out of an ISA arrives in a non ISA account of any description, then this interest would be treated like the rest of the money in the non ISA account and thus become taxable, although it would be taxed at 0% if first any Personal Allowance was still unused, if not then if any Savings Starter Rate was still available, and if not then if any of the Personal Savings Allowance was still unused by that particular saver.

If that was the case, then there would be no point saving in an ISA in the first place?

I think I have worded it unclearly so that what I was trying to say is easily misunderstood.

I meant that the further interest earned on the original monthly interest once this original interest had been moved to the non ISA account would be taxable, and not that any tax would be liable on the monthly interest payments themselves as these were earned within the ISA before they were withdrawn!