End of tax year reminder – 5,000 Virgin Flying Club miles for taking out an ISA

With just a month to go before the end of the tax year, it is worth remembering that Virgin Money is offering 5,000 Flying Club miles to anyone who open a new FTSE Tracker ISA.

There are two ways to invest. You can either invest a lump sum of £1,000, or make a £75 monthly investment for at least six months. In either case, you must leave the account open for six months.

Now, this is obviously an investment and so could lead to the loss of your capital.

The less risky option is £75 x 6 months = £450 invested. If you valued the miles at £50, you would still come out on top with a 10% fall in the market by the time you exit.

The £1,000 lump sum investment is clearly riskier – the value of the miles is wiped out with just a 5% fall in the market. As your entire £1,000 is invested on Day 1, you are also losing out on proportionately more bank interest as well.

You cannot open this ISA if you already have a ‘stocks and shares’ ISA for the current tax year. You can open one if you only have a ‘cash’ ISA for the current tax year.  Opening it before 5th April with a lump sum therefore gives you flexibility to open a different ‘stocks and shares’ ISA in the new tax year, with a different provider.

As always with financial issues, take proper advice if necessary.  The one person I know who took advantage of this deal said that the miles posted incredibly quickly.