As the tax year ends, don’t forget 6,000 Virgin miles for opening an ISA

With just a month to go until the tax year ends, it is worth remembering – if you haven’t used up your ISA allowance for the year – that Virgin Money is currently offering 6,000 Flying Club miles to anyone who open a new FTSE Tracker ISA.

See here for full details.

Based on previous experience, if you open a Virgin ISA in this tax year, you should receive another bonus if you open another one after 6th April for the 2016/17 tax year.

Virgin Money

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 or the miles may be clawed back.

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 £60, you would still come out on top with a 10% fall in the market by the time you exit.  However, this means that your investment will cross into two tax years.

The £1,000 lump sum investment is clearly riskier – the value of the miles is wiped out with just a 6% fall in the market.

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 and have not invested your full £15,240.

As always with financial issues, take proper advice if necessary.

In general, the miles post VERY quickly, often within a week.

(Want to earn more Virgin Flying Club miles?  Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)

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  1. Martin wood says:

    And Virgin’s annual management charge for this product is significantly above what you’d pay elsewhere.

    • Exactly !

      Can’t see any upside to this as presumably there are charges to exit and transfer, even if only dealing / spread costs.

      You could, theoretically, open this and then transfer the ISA to another provider but I can’t help but think the £60 incentive would be wiped out and if you value your time at all, then you would surely be working for less than minimum wage :)

  2. James67 says:

    I opened one of these for the points last November and have made 4x£75 payments already. I seem to recall somebody commenting on a previous post that you have to keep it for 6 months for some reason. Is this true or can I cancel it now without issues or penalties? If I continue making payments to this one after 6th April does that preclude me from opening a S&S ISA with another provider in new tax year? Thanks.

    • You can only invest in one ISA in a single tax year so I suspect they will “open” you a 2016/17 ISA in April to harvest the continuing payments, which would preclude you from opening another elsewhere !

    • You need to make 6 payments or they say they may reclaim the miles.

      • Money gets deducted on the 1st of every month from November 2015 for my ISA. Am I safe to cancel immediately after the 1st of April deduction (so I can avoid crossing into 16/17 tax year) or do I have to wait till end of April? Thanks!

      • Tilly71 says:

        You could transfer the points out!

        • I’ve already done that and in the 5 payments I’ve made my investment has lost £20

      • James67 says:

        Thanks Rob, that is the specific piece of information I was trying to recall. Thanks to everybody else too.

  3. With so much uncertainty with the EU referendum coming up, I can’t see FTSE doing very well in the near future. While we’re on that topic, what do we think will be the “Brexit” impact to HFP readers? As a significant portion of my salary goes on holidays, it would be useful to have some insight. the usual theme but perhaps HFP could do an article?

    • No more EU261 compensation!

    • PS.
      The offer is for “Virgin Money Stocks and Shares ISA” not just the FTSE All Share tracker as written in the article. There is a Gilts and Bonds fund too.

    • ankomonkey says:

      Maybe the UK can escape the EU interchange cap that’s threatening our credit card rewards so much…

    • My understanding is that BA have to offer the ex eu fares to all eu citizens. However should the UK leave the eu, we may start seeing BA changing the rules of the tickets banning uk citizens from taking part.

  4. Can you pay in the £1000 then immediately withdraw £999 to keep the account open for 6 months?

    • Hairy McFlairy says:

      It would be against the Ts & Cs – “you can invest a lump sum of £1000 or more, held in the account for a minimum of 6 months”

  5. Don’t understand the negativity about this. I saw the article last year, first direct debit made in August 15, cashed out in February 16. I had £1.50 profit! Guess what guys this was not a real investment and purely a points earning exercise. Cost me the 5 minutes to set up and the (admittedly) 2 phone calls to exit. Customer services were great by the way. Easier than insuring a non-existent pet in my book!

    • Genghis says:

      I think people don’t like the at most 10% sensitivity. A small movement in the fund’s value could wipe out the value of points and start eating into your capital. At least with pet insurance you know how much it is going to cost you.

  6. +1 I think this is a great deal from Virgin and one I’ve taken advantage of twice, 12000 miles plus a healthy return on investment. 5 star.

  7. Genghis says:
    • It says “without spending a penny” but what about taxes and fees, these were paid! Typical Daily Mail story!

      • What about the value of the points?

        • Genghis says:

          I know. I didn’t like the article myself. Flights certainly aren’t ‘free’, but ‘good value’. Doesn’t make for much of a story then though does it…

  8. I assume this offer only applies to the ISAs. I’m non-tax resident so can’t open the, but could open a non-ISA product if the promo allows.

  9. OT T**** moggy ins

    Somebody I know got the points & cancelled the contract, the first month’s payment has been refunded (without being requested) and the points are still there (for now, I guess we’ll see).

  10. The best return i have had out the Virgin ISA is the free coffee and biscuits in the Virgin Lounge.

    • i hasten to point out, Virgin Money lounge :-)

      • I still use the Piccadilly one for the odd bit of HFP work now and then.

        • I have been to the ones in London, the lounges in Glasgow and Edinburgh are much better. The Edinburgh is an old victorian building on St Andrew Square and is very grand. The Glasgow lounge is over 2 levels and includes a small cinema which shows films and sport.

  11. Is there any benefit (as in flying miles) for a safer cash ISA ?

  12. Jonathan says:

    Ironically my statement from Virgin Money has arrived this morning. 6x£75 investments and 5000 points later i’m £22.12 down on my capital. Or put another way, the points cost 0.004p each so not the worst investment I’ve ever made. I don’t need the £400 odd so will leave it in for the next 12-18 months or so and the points will cost me nothing eventually (if I can wait that long).

  13. If the typical VS UC “J” fare LHR-JFK-LHR is £1,600 net of £500+ taxes etc, then surely 6,000 FC Miles (7.5%.of the 80,000 VS asks for a redemption seat) are worth £120; so, even with the 1.8% management charges, the FTSE would have to fall 10.2% for a £1,000 investment to to turn sour.

  14. Deenesh says:

    can any Virgin Money customers who have had the miles bonus more than once please confirm. I’m currently wrangling with them as they are refusing to pay me miles after opening a new SS ISA as they say I was already a customer. Thanks.

  15. I have just checked mine and my husbands ISAs online and from what i can see you cannot withdraw the latest deposit until after 10 days of it being in the ISA, so i have a few days to go.

    My two ISAs are valued at £453(Bond & Gilt) and £451(Bond,Gilt & UK Share)

    There appears to be a withdrawal function on the online account.