Special offer: 8,000 Virgin miles for opening a Virgin Money ISA

(EDIT:  this offer is extended to 31st July)

With the new tax year now underway, Virgin Money is currently offering an impressive 8,000 Flying Club miles to anyone who opens a new stocks and shares ISA.

See here for full details.

This is an attractive offer given that the usual deal is just 5,000 or 6,000 miles.  The offer runs until 30th June.

I would, however, flag up two things:

Last year Virgin Money offered 12,000 miles in May / June – it is possible they could offer a better offer later in the year

If you open a Virgin Money ISA, you would be unable to take advantage of any future Nutmeg ISA promotion to earn Avios (don’t bother opening a Nutmeg ISA at the moment as the bonus is only 2,500 Avios) – and Nutmeg has lower fees than Virgin Money

Virgin Money

There are two ways to invest. You can either invest a lump sum of £2,500, or make a £100 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.

(Note that the minimum investment has gone up from £75 to £100 and the minimum lump sum has gone up from £1,000 to £2,500.)

There are six different investment funds to choose from.

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

The less risky option is £100 x 6 months = £600 invested. If you valued the miles at £80, you would still come out even with a 13% fall in the market by the time you exit.

The £2,500 lump sum investment is clearly riskier – the value of the miles is wiped out with just a 3% 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 £20,000.

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

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

There is an additional upside to having a Virgin Money product – you are able to use the Virgin Money lounges in London and various other cities across the UK.  They are surprisingly pleasant and, ironically, I am typing this in the Piccadilly Virgin Money lounge which I reviewed here because I have a lunch just around the corner!

(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.)

Bits: Should you buy Waitrose gift cards today?, Amex MR and the Heathrow Rewards deal
Bits: Good deals at Hilton Honors Auctions, more ways to save at No 1 Lounges
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Comments

  1. Genghis says:

    @Rob “If you valued the miles at £120”
    I think the article needs updating from last time. 1p x 8k = £80?

  2. the real harry1 says:

    worth mentioning that risk can be mitigated in various ways

    eg the pound cost averaging method (6x £100) will always be less risky than investing 1x £2500

    so will choosing the most boring place to invest with lowest potential returns

  3. the real harry1 says:

    highly unlikely to see 12000 points return any time soon IMV

    if it does come back, I think it will be timed for Jan-March – to tempt people in before the HMRC financial year ends – & therefore too late for 6x £100 in THIS financial year – you certainly don’t want to straddle 2 financial years with V-ISA

    • Genghis says:

      I was to hold until 1 Jul and latest 1 Sep. But who knows. Are you biting on the 8k?

      • the real harry1 says:

        might as well

        • Genghis says:

          I’ve been mulling it over and I’m going to go for it. 2 x 8k not to be sniffed at but don’t wanna hear about it when it goes up to 12k…

    • Why do you sat that about the V-ISA – a bad product, or better ways to take advantage than letting it run?

      • Genghis says:

        You can only pay into one ISA per tax year. So paying in your 6 months over two tax years means you cannot take advantage of another ISA offer

  4. Sam Wardill says:

    Is it possible to transfer in another stocks and shares ISA from this tax year?

    • Sam Wardill says:

      I opened a new ISA with them (to get the offer) and I will do the transfer today. I called them to ask them if this is OK. They referred me to HMRC. I called HMRC and they said they wouldn’t get involved. So I think it should be fine.

  5. “Virgin Money offered 12,000 Avios” – perhaps should read FC miles?

  6. Stuart says:

    Be vary cautious investing ANYTHING with virgin money if you intend on withdrawing in the short term. I’ve had a nightmare trying to release last years allowance as VM say that (even though the t’s&c’s allow it) an ISA is a long term investment so “additional checks” need to be made before allowing short term withdrawals. These checks only become evident when after nearly two weeks I call to find out why I hadn’t received my cheque (remember those?) & get told they are “looking into it”. First line contact centre know nothing, other teams “dont take inbound calls from customers” and raising a complaint leaves you with the strict 10/day response 8 week resolution” timescales, which (surprise/surprise) results in “we’ve done nothing wrong”.

    Have opened a case with Ombudsman to investigate.

    • the real harry1 says:

      you were unlucky

      they simply sent me mine & my wife’s LY with no checks

    • The Original Nick says:

      I’ve never had any problems in the last 4 years.
      And I’m going for this one too.

    • I had no problems last year.

    • Genghis says:

      We got a cheque and then another when the underlying bonds became clean.

      Not aware of any lock in period. Give VM 8 weeks then raise FOS complaint.

      • Stuart says:

        They’ve already issued final response, so FOS case already open.

        • Genghis says:

          Good luck. Hope you get it sorted. It just seems weird

        • the real harry1 says:

          can you please date this? ie which month did you ask for your money back?

          just wondering if they have hardened their attitude recently, after all, LY it was money for nothing/ free points worth nearly £120 x2

          • Genghis says:

            @Stuart what were the additional checks and did VM explain why you didn’t pass them?

          • Stuart says:

            I topped up my last payment end of March before end of year deadline, then tried to withdraw at end of April. They were very shady about what the checks were, but the key point they were interested in was why I was withdrawing & what I intended doing with the money. It all felt very anti-money laundering, but they were adamant it wasn’t…

          • Nick M says:

            I didn’t have any issue withdrawing in Feb(ish) after making 6/7 x £75 contributions

            Worth noting that if they suspect that you are laundering money/etc they can’t let you know, which may explain the “shady” aspect.

  7. Matt Brown says:

    I took this out last summer, investing the minimum £75 for 6 months on the lowest risk product, and when I cashed out had made a whopping £5!! At one point I was down a couple of £ too.

    I think I will give this a go as I need to somehow get 43k virgin miles in the next 3 months for an upper class redemption we want to take next year. Already churned amex gold and virgin black.

    Slightly off topic but last summer I booked 2 economy virgin flights through an online travel agent, so well before the devaluation was announced. The first flight was in December and earned under the old rate, the other was last month and I earned under the new rate, so received 50% of miles flown. Is this right?

    • Crafty says:

      Being on the lowest risk product, and investing only £75, for only 6 months, it seems to me that £5 in that time period (translates to about 12.5% per annum) is a very strong return!

      • Eastland says:

        I’ve put £5400k into mine over 6months. It’s made £243 so far. Mean balance as it’s been topped up in chunks is roughly £2400 across that time So 10% return in 6m. I’ll be very happy if it adds another 10% from now until November.
        For something that needs literally no input from me it’s doing much better than my now useless Santander 1-2-3 acc which at 3% was ok and at 1.5% is a pain in the arse.
        Will open nutmeg this year once they offer the £150+ they did last year!

        • Matt Brown says:

          Which product did you invest in?

          • Eastland says:

            I have a spread with roughly (from memory) about 1500 in U.K. Equities & bonds, 3000 in U.K.+ overseas, and 1000 in the global fund. All have risen roughly equally. No one of the 3 had massively jumped more than the others.

        • the real harry1 says:

          you simply won’t get another 10% over the next 6 months

          probably lose your gains

          it was the Trump honeymoon effect on the mkts

      • Genghis says:

        Not c. 4.4%? Back of a fag packet. 5/(6*75) * 2 (to annualise) * 2 (to take into account monthly payments)

    • You can take the virgin white amex too, you know, for a few extra miles (10k at the mo?) as MBNA let you have both

  8. Wally1976 says:

    As a Virgin Money customer you also have access to some other deals, e.g. 10% off some Advance fares on Virgin West Coast trains. See here for details: https://uk.virginmoney.com/virgin/service/offers/virgin-trains/

    • johnny_c-l says:

      Plus access to the Virgin Money lounges….on this topic does anyone know if, having closed my Virgin Money account, will I still be able to use my existing Virgin lounge card to gain access?

    • PalCsaky says:

      You can get 20% off advance fares through the Virgin Red app.

  9. OT has anyone else received an email about supercard being pulled?

  10. the real harry1 says:

    O/T sorry to be lazy but must dash

    anybody got the quick answer as to how to get from Fulham Broadway to Luton Airport please? ie public transport

    • the real harry1 says:

      worked it out

    • District Line to South Ken, Piccadilly Line from South Ken to Kings Cross St Pancras and then train from KX?

      • Andrew (@andrewseftel) says:

        Might be quicker to sit on the district line to Blackfriars. Certainly easier.

    • Alex W says:

      Think there is a bus from Victoria if that helps. Though the only time I took it there was a crash in the M1 and the traffic caused me to miss my flight!

  11. Oliver says:

    I would also like to know if transferring a S&S ISA works

  12. Jamie Carter says:

    I recently had to write to VM to get my 12000 FC miles from last year. They initially all posted, but they clawed back 6000 without telling me – I assume because they didn’t take my first £75 by DD until the day after the 30th June deadline. Luckily they gave me the 6000 bonus back after I asked for it. Bit gutted the bonus is only an extra 2000 this year though, not sure whether to bother or not.

    • the real harry1 says:

      £80 of free points for sitting on your backside sounds quite appealing to me :)

      • Peter K says:

        £80 if you get 1p per point. Less of you, for example, convert them to IHG points. £40 with the risk of losing money sounds less good.

  13. This was a fantastic deal last time around both me and my partner opened one. We made £40 plus pounds plus 12,000 miles in 7 months. at £75 a month the return was incredible. It’s a shame this isn’t 12k miles again. I may wait a couple of months and see if this deals changes.

  14. jane davies says:

    Do I have to close last years one before I open a new one for this year or can I have two ISA’s running at the same time with the same company? I know the T’s and C’s say you can’t just pay into an existing one (I haven’t paid into it this tax year)

    • Genghis says:

      You’ll be fine. Others have reported doing it though I’ve not done it myself with Virgin. As I’m sure you’re aware, you can only pay into one S&S ISA each tax year.

      • Peter Taysum says:

        They refused my miles, when I opened a new one. I contacted them, and they said only available to new customers so I cancelled.

  15. AndyGWP says:

    Put in £450 on the last offer and cashed out £455.43

    … this time next year Rodney

  16. I’ve done this a few times, usually closing my account after 6 months. This time however, I haven’t closed my ISA 2016/17 Isa although I intend to in the next week or so.

    I’m not sure if something similar to the 6 month rule you have with some credit cards applies here? Can anyone clarify if there likely to be any issues with me getting the offer if I open my 2017/18 one in the next few weeks?

    • apologies – just read the thread above this! Going to close the current Isa now and leave it for 6 months and see what’s available then…