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.
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.