Virgin launches new fixed-rate ISAs

The new accounts are available from 2pm today, with the one-year ISA offering a fixed rate of 1.65% and the five-year ISA paying 2.35% tax-free.  

The new accounts accept transfers in from existing ISAs and additional deposits can be made for 30 days following account opening. This means that customers opening accounts before 6 April can take advantage of the increase in the ISA limit to £15,240 by using the account for both the current and the new tax year subscriptions, which together total £30,240.

Customers can withdraw funds during the fixed rate period subject to a charge equivalent to 60 days loss of interest for the one-year product and 180 days for the five-year product, and customers have the option of whether to receive interest annually or monthly.

Accounts can be opened in stores, online, over the telephone and via post. As with all Virgin Money savings accounts, interest rates are the same through all channels and interest rates on ISAs are the same or higher than the equivalent non-ISA product rates.

Zack Hocking, Head of Savings at Virgin Money said:

“Many savers who are looking to maximise their returns in the current interest rate environment look at fixed rate ISA products, so we’re delighted to offer choice and increase the interest rates on both our one and five-year fixed rate ISAs.”