5 Year Fixed Rate Cash ISA - Paying 2.4% - Virgin Money
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5 Year Fixed Rate Cash ISA - Paying 2.4% - Virgin Money

28
Edited by:"honeststeveo"Found 16th Oct
So this rate is a good step above the low 1.something% that have been on offer for quite some time.

Indeed its a better rate than almost all non-ISA interest paying accounts. It's 180 days loss of interest if you want to get your money back so can always jump ship early if rates rise significantly. Chart shows the effective rate (after penalty) for early withdrawal.


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And while there has been recent talk of rate rises lately the same can be said for the last few years and it hasn't happened yet so why not lock in a rate which will likely still look respectable in a couple of years time.

Edit: the rate available is 2.5% if you are an existing customer.

Hope this helps someone.

28 Comments

Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 next I bet. By end of 2018 I expect the base rate to be 1.

If I was going to lock away money for 5+ years I'd go for a stocks and shares ISA over this. Have a look on investment sites.

Original Poster

cf155 m ago

Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 …Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 next I bet. By end of 2018 I expect the base rate to be 1.



As i said in the OP this is speculation. MC didn't get the name "unreliable boyfriend" for nothing.

Original Poster

Rumbaba333 m ago

If I was going to lock away money for 5+ years I'd go for a stocks and …If I was going to lock away money for 5+ years I'd go for a stocks and shares ISA over this. Have a look on investment sites.



This is a guaranteed return so a different animal to playing the markets which are probably going to hit a correction soon.

cf1515 m ago

Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 …Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 next I bet. By end of 2018 I expect the base rate to be 1.


Not happening. Carney has been barking about rate rise since he tookcharge.

The political pressure to keep rates low through brexit will mean this could be a better bet for safe money then a stocks and shares based 5year deal, as the markets will be fragile if not unstable due to investments in the pound factoring
For a decent return at todays rates, this is hot as its a deal that is safe, sure if you have the time and knowledge to play markets so be it. My stocks and shares isa funds have given me 1.8, 3.7 and 6.7% returns over the last 3 years, and they are "stable funds.

Not a good deal as interest rates are on the rise.Having said that that you can withdraw at any time with loss of nterest.

just use chip app and get 5%.

It's a good deal if you have £20k (maximum yearly ISA allowance) to put in, you'll net about £2.5k interest over the 5 years with minimal risk.

cf152 h, 0 m ago

Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 …Interest rates to go up by 0.25 this year, and prob an overall rise of 0.5 next I bet. By end of 2018 I expect the base rate to be 1.


I’ve been told that for the last 4 years on this forum only for people to eat their own words

Banned

Rumbaba337 h, 24 m ago

If I was going to lock away money for 5+ years I'd go for a stocks and …If I was going to lock away money for 5+ years I'd go for a stocks and shares ISA over this. Have a look on investment sites.


It is generally accepted S&S are a longer-term prospect than 5 years

Alternatively open a few regular savers at 5 pcent. 200 a month Santander 500 a month nationwide and first direct I think is 300 a month too... That's 1k a month at 5 pcent

jameswalker45756 m ago

Alternatively open a few regular savers at 5 pcent. 200 a month Santander …Alternatively open a few regular savers at 5 pcent. 200 a month Santander 500 a month nationwide and first direct I think is 300 a month too... That's 1k a month at 5 pcent

It's seems a lot of work and hassle for £600 return.
Obviously £600 is a decent lump but equate that to £50 a month and it really isn't.
If people cut down on 1 takeaway per week they would save nearly double that.

jameswalker4572 h, 17 m ago

Alternatively open a few regular savers at 5 pcent. 200 a month Santander …Alternatively open a few regular savers at 5 pcent. 200 a month Santander 500 a month nationwide and first direct I think is 300 a month too... That's 1k a month at 5 pcent


Is nationwide still £500 a month
do you need to have a main current account with all them as well

snoopy1817 m ago

Is nationwide still £500 a monthdo you need to have a main current account …Is nationwide still £500 a monthdo you need to have a main current account with all them as well


For the 5% AER you need to have a Nationwide Current Account and it's now only £250 per month max.

jameswalker4572 h, 44 m ago

Alternatively open a few regular savers at 5 pcent. 200 a month Santander …Alternatively open a few regular savers at 5 pcent. 200 a month Santander 500 a month nationwide and first direct I think is 300 a month too... That's 1k a month at 5 pcent


Interest is calculated usually at a daily rate. You will not get 5% per month, nor will you get 5% of the total amount you have managed to save in one year.

£10,000 dripped in to an 5% AER account equally over the year will actually only equate to about 2.7% APR over the year.

moneybanks1414 h, 37 m ago

just use chip app and get 5%.


That's not a long term solution. You get 0% by default. you get 1% per referral per year. So you manage to find 5 people year 1 to get 5%, will you find another 5 the next year? and the next? and the next?

chamelion3 h, 53 m ago

That's not a long term solution. You get 0% by default. you get 1% per …That's not a long term solution. You get 0% by default. you get 1% per referral per year. So you manage to find 5 people year 1 to get 5%, will you find another 5 the next year? and the next? and the next?



Otherwise known as a pyramid scheme where new mugs, sorry customers, soon dry up and the only winners are those that joined in first few days. History is littered with the people who don't do the maths - your 5 recruit 5 more each, then their 5 each recruit another 5, by the time this has reached the 10th level of referral there are 9,765,625 people in the scheme from 1 person. how long do you think it would take to reach a point where no new referrals are possible?
Edited by: "rhyming_geek" 17th Oct

I personally think that if interest rates are going to rise, then locking away for 5 years won't be good will have to have a serious think about getting this BUT it's still a good rate for a Cash ISA at the moment

Heat added

gary3335 h, 10 m ago

Interest is calculated usually at a daily rate. You will not get 5% per …Interest is calculated usually at a daily rate. You will not get 5% per month, nor will you get 5% of the total amount you have managed to save in one year.£10,000 dripped in to an 5% AER account equally over the year will actually only equate to about 2.7% APR over the year.


If you're silly enough to keep the £10,000 in a 0% paying account, sure.

I currently have a non fix cash ISA with Virgin. I got an email from them today to say the rate was being halved, but they are offering existing customers an exclusive 5 year fixed cash ISA at 2.5%.

Original Poster

Thar2 h, 33 m ago

I currently have a non fix cash ISA with Virgin. I got an email from them …I currently have a non fix cash ISA with Virgin. I got an email from them today to say the rate was being halved, but they are offering existing customers an exclusive 5 year fixed cash ISA at 2.5%.


Ah yes. I actually got the 2.5% fix myself but didn't post it here as couldn't get it to come up on their site when I wasn't logged in.

I used to work for these clowns, they've been absolutely convinced of a 'guaranteed' rate rise for years. Never happened, and was never even close to happening. The work that me and others had to do at the drop of a hat to plan for this dead cert rise was all wasted. Every time.

whickerg16th Oct

The political pressure to keep rates low through brexit will mean this …The political pressure to keep rates low through brexit will mean this could be a better bet for safe money then a stocks and shares based 5year deal, as the markets will be fragile if not unstable due to investments in the pound factoring For a decent return at todays rates, this is hot as its a deal that is safe, sure if you have the time and knowledge to play markets so be it. My stocks and shares isa funds have given me 1.8, 3.7 and 6.7% returns over the last 3 years, and they are "stable funds.


You must be invested in a poor fund to get returns like this might want to change it. However you have gained an average of over 4% p.a from your Stocks and shares ISA far higher than 2.5%

Sorry if it's obvious, but do you lose interest if you transfer away before the fixed period ends?

Original Poster

Thar26th Oct

Sorry if it's obvious, but do you lose interest if you transfer away …Sorry if it's obvious, but do you lose interest if you transfer away before the fixed period ends?


No need to apologise for it being obvious.
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