Virgin Money launches new ISA paying 2.75%

In the current low interest rate environment, it is important that savers do all they can to maximise their returns.  One of the first tips for any saver is to look to use their tax-free savings allowances effectively.
 
However, while 86% of adults in the UK hold some form of savings, only one in four people hold savings in a tax-efficient wrapper.  Although younger savers (those under 25 years old) are almost as likely to have savings as other adults (83% compared with 86% of all adults), only 13% of this younger age group hold savings in a tax-efficient wrapper, compared with 26% for all adults. (Source: Datamonitor, survey of 2,000 UK consumers, September - October 2012.)
 
Virgin Money has launched a new fixed rate ISA paying 2.75% annually - higher than the latest CPI figure - fixed for five years.  (Source: ONS.)
 
The new fixed rate ISA is available in Virgin Money stores, online and by post, with the interest rate the same however a saver chooses to apply.  The account accepts transfers in of previous cash ISA subscriptions, as well as new subscriptions.  Withdrawals are permitted during the fixed rate period, subject to loss of interest.
 
Peter Rogerson, Commercial Director - Savings and Mortgages at Virgin Money said "There are two simple steps savers should take to maximise their returns in the current low interest rate environment.  Firstly, savers should always consider using their cash ISA allowance for savings, which means they will receive interest without any tax deducted.
 
"Secondly, ISA savers should consider whether they need instant access to their money.  If not, they can earn a higher return with a longer term fixed rate, such as Virgin Money's new ISA which offers a return above current inflation, with the interest rate guaranteed for the next five years."
 
More information on the savings range is available at virginmoney.com/savings