The savings account that offers 10% interest! Virgin Money launches an excellent offer

Virgin Money has launched a regular savings account that pays an eye-catching double-digit interest rate.

Savers can keep a maximum of £250 a month in the account. You can save more in the account, but you won’t earn interest on anything over £250.

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

The agreement is set until July 31, 2025, when the bill expires.

Who can get the Virgin 10% account?

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

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

How does Virgin Money’s regular savings account work?

Customers will be able to deposit up to £250 a month for 12 months into the account and earn a 10 per cent rate on their savings as they grow.

You can skip months and if you don’t manage to save the full £250 in any month, you can pay more in the following or future months.

Any interest Virgin Money pays to its customers does not count towards the £250 monthly limit.

The maximum amount customers can earn in interest at the end of the 12-month fixed term is £3,000; this does not include any interest added to the account.

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

This amount is based on the money you have in your account. Interest will be paid quarterly on the last business day of March, June, September and December.

These regular savings accounts are only worth opening if you want to get into the habit of saving – if you have a lump sum of £3000, earning a similar interest over the year, an account paying around 5 per cent will give you a similar level of interest.

Amounts calculated using the This is Money savings calculator.

How do you compare to other top-tier regular savers?

First Direct has a regular savings account that pays 7 per cent. This account allows savers to put away up to £300 a month.

A saver who deposits £300 per month into this account would have £3,736.50 after 12 months.

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

Principality Building Society has a regular 8 per cent savings programme which is open to customers who are not already current members of the Society.

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

If the amount in your account reaches £1200, you will not be able to deposit any more money into the account.