Virgin raises rate to 1.3pc for new savers

VIRGIN Money has raised the rate for new savers on its easy access account to 1.04 pc after tax (1.3 pc before), up from 0.88 pc (1.1 pc).

It’s welcome news for savers who have suffered weeks of rate cuts.

You can open the account over the internet, through the post or in its branches.

Savers in older issues earning less interest can switch into the latest version to earn more interest.

The new Virgin Easy Access Saver issue 12 does not have withdrawal restrictions and the rate i s not boosted by an initial bonus.

Coventry Post Save Easy Access pays a slightly higher 1.12 pc (1.4 pc), but you can make only 12 withdrawals a year.

Britannia, part of Co-op Bank, pays 1.65 pc on its Select Saver 5, but lets you take money out of your account only four times a year.

Tesco pays a slightly higher 1.08 pc (1.35 pc) on its Internet Saver, but this includes a 0.48 (0.6) percentage point bonus, which is paid for only the first 12 months.

Virgin Money has also launched a top two-year, fixed-rate deal at 1.68 pc (2.1 pc). The top one-year fixed-rate deal comes from internet bank First-Save at 1.49 pc (1.88 pc). BM Savings, part of Halifax, pays 1.4 pc (1.75 pc) on its one-year, fixed-rate deal available through the post.

The top branch-based one-year deal comes from Britannia at 1.37 pc (1.71 pc) and the Post Office, where the deposit taker is Bank of Ireland, at 1.28 pc (1.6 pc).