Savers today earn a fifth of the interest

NORTHERN Rock savers who stayed loyal after the bank was bought by Virgin Money are today earning a fifth of the interest they got a decade ago.

Virgin Money took on one million Northern Rock savers when it bought the bank in 2011.

Its best one-year fixed-rate bond pays 1.3 pc, or £130 on £10,000.

Ten years ago Northern Rock paid 6.71pc, which would have earned savers £541 more a year.

Easy-access rates have also plummeted since the financial crisis.

Today, Virgin’s best easy-access account pays 1.21 pc, compared with Northern Rock’s 6.31 pc a decade ago. That’s £510 a year less on a £10,000 nest-egg.

Virgin’s best cash Isa pays 2.15 pc, compared with Northern Rock’s 6.2pc in 2007. This means you’re earning £121.50 a year less on a £3,000 pot — the most you could save into a cash Isa in 2007.

Charlotte Nelson, of financial data service Moneyfacts.co.uk, says all banks and building societies have slashed rates since the financial crisis, and Virgin Money is still among the top payers.

‘Over the past ten years, savers have been tormented by rockbottom rates. With rates at a record low, it doesn’t take a lot to enter the best-buy tables.

‘Long-suffering savers now have to be savvy to get the maximum return on their savings.’

Vigin Money says: ‘We try to ensure interest rates remain competitive for all customers.’ p.thomas@dailymail.co.uk