Compare Virgin Money ISAs

Who are Virgin Money?

Virgin Money, previously known as Virgin Direct, are a financial services and banking corporation founded by Sir Richard Branson in 1995.

They offer a broad range of personal and corporate financial services including current accounts, savings accounts, loans, insurance products, mortgages and pensions.

Within their range of savings accounts, Virgin offer two types of ISA products to retail customers: Cash ISAs and Stocks and Shares ISAs.

What is an ISA account?

An ISA account is a type of savings account that is completely free from tax.

By investing within an ISA, your investments are sheltered from both income tax and capital gains tax.

This means that the growth of your investments and interest and dividends you earn are sheltered from the taxman.

HMRC allows all individuals to add up to £20,000 to ISA accounts in the current tax year.

There are two main types of standard ISAs: Cash ISAs and Stocks and Shares ISAs.

What’s the difference between a Cash ISA and a Stocks and Shares ISA?

Cash ISAs provide you with fixed or variable interest rates based on the length of term and type of Cash ISA you open.

Cash ISA summary:

• In a Cash ISA, your investment cannot go down in value, provided that you don’t make any withdrawals outside of the permitted restrictions for your account. For example, withdrawing before the end of your fixed term.
• The longer the fixed term you commit to in a Cash ISA, the higher interest rates you receive.
• If you withdraw prematurely from a fixed-term Cash ISA, you will either be charged or lose a chunk of your earned interest.
• For variable-rate ISAs, in general the less accessible your ISA is for withdrawals, the higher interest rates you’ll get.
• Since the financial crash of 2008, interest rates have been sitting at record lows. This means that over the long term, Cash ISAs are unlikely to be able to keep up with the returns of Stocks and Shares ISAs.

Stocks and Shares ISAs allow you to invest directly in the stock market through shares, funds, ETFs and other investment vehicles.

Stocks and Shares ISA summary:

• You can invest in a wide range of assets and either pick them yourself or choose a ready-made portfolio that’s managed for you. Virgin Money’s Stocks and Shares ISA is a ready-made portfolio ISA, giving you several funds to choose from based on risk level.
• Your investment dividends and capital gains are tax-free, which can save you a considerable amount on tax bills depending on your income situation.
• You are still free to withdraw at any time, usually without charge. However, you need to sell your investments first which usually takes approximately one week.
• The return on your investment is potentially uncapped, depending on what you invest in. However, you are also at risk of losing money and getting back less than what you put in.

What are the charges for a Virgin Money ISA?

Virgin Cash ISA charges:

Virgin Money Cash ISAs are free of charge, as long as you don’t make any withdrawals that aren’t permitted for your account.

Some of their variable-rate ISAs offer lower rates but allow you to withdraw as and when you please, so you’ll never be charged. However, if you withdraw from their fixed-rate ISAs before the end of your term you lose some of your interest.

Virgin Stocks and Shares ISA charges:

Virgin charge an annual management charge for all of their Stocks and Shares ISA funds, ranging from 0.6 to 1.3% (subject to change).

This charge is deducted from the performance of your investment, so you won’t actually see it leaving your account. Instead, it is reflected in the performance of your ISA fund.

To find out the ongoing charge of the Virgin Stocks and Shares ISA fund you pick, have a read of the Key Investor Information Document.

You can download this document from the website during your ISA application process, and it contains all the essential fund information, including the charges and past performance.

How do I open a Virgin Money ISA?

The easiest way to open a Virgin Money ISA is online, through their website.

The application process is quick and easy, and should only take a few minutes.

You’ll need:

• Your personal information including your date of birth, address and National Insurance Number
• Your Debit Card if you want to open your account with a lump sum payment
• Your Bank Details if you want to set up a Direct Debit regular contribution for your savings

Can I transfer my existing ISA into a Virgin Money ISA?

Yes, you can open a Virgin Money ISA by simply transferring your previous ISAs into a new one with Virgin.

This isn’t as simple as withdrawing your current ISA and paying it into a new Virgin ISA, but it is a straightforward process:

1. Download and complete Virgin Money’s ISA transfer form
2. Upon receipt of your form, Virgin will administer your ISA transfer for you
3. Make sure you check with your existing provider if you’ll be charged for transferring out
4. Your ISA transfer won’t qualify as a contribution towards your allowance as long as you do it this way, so you can still add a fresh £20,000 in the same tax year