The savings account with 10% interest! Virgin Money launches top deal

Virgin Money has launched a savings account with a striking dual interest rate.

Savers can put a maximum of £250 into the account each month. You can put more into the account, but you will not receive interest on anything over £250.

A saver who deposits £250 into this account every month for 12 months would have £3,162.40 left at the end of the term, of which £162.40 would be interest.

The deal is fixed until July 31, 2025, the date the account expires.

Who can get the Virgin 10% account?

The regular savings account is only available to customers who have had a current account with Virgin Money since 4 December 2019.

Customers who have a current account originally opened with Clydesdale Bank or Yorkshire Bank, such as a Signature Current Account, can also open a new regular savings account.

How does the Virgin Money savings account work?

Customers can deposit up to £250 into the account each month for 12 months and receive a 10 per cent interest rate on their savings as they grow.

You can skip months and if you can’t save the full £250 in a given month, you can pay more in the following or future months.

Interest paid by Virgin Money to customers does not count towards the £250 monthly limit.

The maximum amount customers can earn interest on at the end of the 12-month fixed term is £3,000. This excludes any interest added to the account.

Savers should be aware that interest is calculated on a growing balance. Virgin Money calculates how much interest they should pay you at the end of each day.

This is based on the money in your account. Interest is paid quarterly on the last business day in March, June, September and December.

These savings accounts are only worth considering if you want to start saving. If you have £3,000 as a lump sum, you will get a similar interest rate over the year. An account with an interest rate of around 5 per cent will give you a similar interest rate.

Calculate the sums with the This is Money savings calculator.

How does it compare to other top savers?

First Direct has a fixed saver account that pays 7 percent. This account allows savers to put away up to £300 a month.

A saver who pays the full £300 into this account each month would have £3,736.50 left after 12 months.

The account is only available to First Direct 1st Account customers.

Principality Building Society has a fixed savings scheme of 8 percent, which is available to customers who are not yet members of the Society.

Savers can deposit up to £200 per month into this account. The interest rate is fixed for six months and after this time a saver would have £1,227.53 if they deposited £200 per month into the account each month.

Once the amount in your account reaches £1,200 you will no longer be able to deposit funds into the account.