Virgin Money Launches New Range of Fixed Rate Cash ISAs
Virgin Money is launching a new range of fixed rate cash ISAs offering up to 2.75% gross/AER fixed.
The new cash ISA products include a 1 year fixed rate cash ISA offering a rate of 1.85%, a 2 year rate of 2.20% and a 5 year rate of 2.75%. These accounts accept transfers in from existing ISAs.
While the accounts are fixed rate, account holders do have the option to make withdrawals during the term subject to a charge. This amounts to 60 days loss of interest for the one-year product, 120 days for the three-year product and 180 days for the five-year product.
AER - Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. (As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time)