Virgin Money is offering 5,000 Flying Club miles to anyone who open a new FTSE Tracker ISA. See here for full details. I first wrote about this offer last year, thinking it was a short term special deal, but I received another email from Flying Club about it last week and it does seem to be continuing.
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.
You hopefully don´t need me to remind you that this is an investment product and you could lose some of your capital – these miles are definitely not risk free!
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. The small print says that the offer is once per customer, so I assume you cannot get it again if you opened a similar ISA last year.
This is certainly not one for totally unsophisticated investors. However, if you don´t need the money back in the short term then you do at least have the flexibility to sit it out until the market gets back to your original investment level!
(Want to earn more Virgin Flying Club miles? Click here to see recent articles on Virgin Atlantic, Little Red and Flying Club, and click here for the latest news on earning and spending other airline and hotel points.)