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Virgin Money tweaks its miles-earning savings account

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Virgin Money has launched a new version of the Virgin Atlantic 1-year Flying Club Savings Account.

This is an interesting product which no-one has tried before.  You make a one-off deposit of between £1 and £1 million into a one year bond.  No further deposits and no withdrawals are allowed over the one year period.  Instead of cash interest, after one year you will receive 1,600 Virgin Flying Club miles for every £1,000 you save.

Full details are on the Virgin Money website here.

In case you are wondering exactly how this works, and whether you can escape Income Tax if you pay it on your savings (you can’t), this is your answer:

Virgin Money pays you interest based on a rate of 1.36%

Your interest is immediately taken back and used to purchase Virgin Flying Club miles at – effectively – 0.85p per mile

In terms of the income tax position, the interest should be included on any tax return and will count towards your Personal Savings Allowance, like any other savings interest

In general, I would be a buyer of Virgin Flying Club miles at 0.85p – except for the fact that I am sitting on over 1.5m of them between my wife and myself and that’s probably enough for now!  You need to compare the notional 1.36% interest rate with comparable accounts from other institutions with a similar risk profile.

A new version of this account was launched this week.  The interest rate is unchanged, but the savings term if you apply today runs to 20th January 2020.  This means that you are actually putting your money away for 13 months.

You can find out more on the Virgin Money website here.

How to earn Virgin Points from UK credit cards

How to earn Virgin Points from UK credit cards (September 2023)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):

SPECIAL OFFER: The sign-up bonus on the Virgin Atlantic Reward+ Mastercard is doubled to 30,000 Virgin Points if you apply by 2nd October. You receive 15,000 Virgin Points with your first purchase and a further 15,000 points if you spend £3,000 within 90 days. Apply here.

Virgin Atlantic Reward+ Mastercard

30,000 bonus points (SPECIAL OFFER TO 2ND OCTOBER) and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

A generous earning rate for a free card at 0.75 points per £1 Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 30,000 Membership Rewards points, which convert into 30,000 Virgin Points.

The Platinum Card from American Express

30,000 points and a huge range of valuable benefits – for a fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

40,000 points bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points

(Want to earn more Virgin Points?  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.)

Comments (107)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Ali says:

    OT Amex lounge popup

    Was pretty busy today – arrived at 1530 to be told that it was at capacity and there was a waitlist. Headed over to Maison Bab round the corner which does good food and drinks and is a participating shop small venue.

    Approx 1 hour later I got a text saying it was my turn and I had to text YES within 10 mins if I still wanted my spot. On arrival, drinks service at the bar was fast and good, but canapés seemed sparse, there was nowhere left to sit, and the gift wrapping service had stopped accepting further gifts.

    Not quite as positive an experience as Rob et al reported yesterday but still worth a visit.

    • Shoestring says:

      So you got there late about 5pm (when the venue closes at 6pm), you got as many great free cocktails or other drinks as you wanted, but you’re complaining that food was low, place was popular & they stopped wrapping presents?

      Get real.

      • Callum says:

        While many people here are obsessed with downing as much free alcohol as possible, not everyone is…

        If I turned up at 3.30PM (not 5PM…), had to wait an hour and then there was no food or gift wrapping service which I was expecting to be there, I’d also be slightly disappointed (though I’m not sure saying “not as good as the previously described visit but still worth going” really counts as complaining).

        Why this seems to personally offend you I have no idea!

    • Ali says:

      apologies if my post which aimed to give a fair account of my visit today came across as complaining. I was trying to report my experience in the hope that it might be of some use for those planning to attend tomorrow and expect to be allowed straight in

  • Yawn says:

    Actually, two of the stalls on the market used those iZettles. Didn’t know they would be off limits. You’d think that the people using them would be “small” by definition!

    Given that the market is there only one month a year, I’m not sure how the map could have helped so I just gave it a try. Might try and complain to Amex though only complained about another offer not tracking two weeks ago…

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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