Virgin Money has released details of a new fixed rate cash ISA that beats the current rate of inflation.
Its new fixed rate ISA pays 2.75 per cent. Just above the current consumer prices index (CPI) inflation measure of 2.70 per cent.
The rate is fixed for five years and account holders are unable to access the fund without loss of interest.
The ISA can be applied for at a Virgin Money store, online or by post and it accepts transfers-in of old ISA balances.
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.”
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