Virgin Money Fixed ISA

Al_Ross

I took out a  year Fixed rate ISA with Virgin Money on 13.06.24 and deposited £20,000 in it then.

I was expecting it to mature on 13.06.25 but apparently it matures on 30.06.25.

MY question is do they pay interest on the extra 17 days, or is it the 1 year only?

flaneurs_lobster

They'll pay interest up to the maturity date.

Al_Ross

So they have my money for an extra 17 days and no interest paid on that. I work out about £47 on £20000.

Billxx

Al_Ross said:

So they have my money for an extra 17 days and no interest paid on that. I work out about £47 on £20000.

No, if they are saying the maturity date is 30th June they will pay interest up until that date. Then they will convert the account to an easy access ISA at a lower Interest rate.  So you should think about moving it or taking out a new fixed ISA with them.  In the past I have done this and moved it to a new fixed rate ISA with Virgin Money.

Hope that helps.

refluxer

Some fixed rate cash ISA accounts have fixed maturity dates which mean that the actual maturity date is later than the stated fixed rate duration would imply.

When this is the case, as mentioned above, you'll always get the fixed interest rate paid up until the actual date of maturity which, in your case, is 30/06/25.

clairec666

refluxer said:

Some fixed rate cash ISA accounts have fixed maturity dates which mean that the actual maturity date is later than the stated fixed rate duration would imply.

When this is the case, as mentioned above, you'll always get the fixed interest rate paid up until the actual date of maturity which, in your case, is 30/06/25.

Exactly this. A lot of fixed rate ISAs are advertised as "1 year" but your money is locked in for a little over a year; this is why it's important to read the full account description if you really need access to your money on a particular date. On the other hand some fixes mature on the anniversary of opening, so they will be exactly a year long.

If your ISA matures after 380 days, for example, you'll get interest for the full 380 days, etc.

Al_Ross

Thanks all, I am happy to receive 5.05% interest up till then.