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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.

Virgin Money tweaks its miles-earning savings account

How to earn Virgin Atlantic miles from UK credit cards

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

Click here to read our detailed summary of all UK credit cards which earn Virgin Flying Club miles.  That page is regularly updated with the latest special offers and will still be accurate even if you are reading this article months after publication.

(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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Comments

  1. Something for bits

    What’s the deal?
    Stock up on your drinks for Christmas by getting a £50 voucher to spend on handcrafted wines from Virgin Wines in exchange for 12,500 Flying Club miles.

    Tell me more
    Virgin Wines has been voted ‘Online Retailer of the Year’ at the Drinks Retailing Awards in 2017 and 2018, making this a perfect opportunity to use your voucher to shop their huge selection of handcrafted wines. Create your very own case or take a look at the range of pre-mixed cases put together with the festive season in mind.

    All wines come with a 100% money back guarantee, so you know you can buy in complete confidence.

    Terms and Conditions
    Please order by 4pm on Friday 21st December for guaranteed Christmas delivery. Out of areas (parts of Scotland, Northern Island and Isle of Man) cut off is 4pm Wednesday 13th December. For more information on out of area postcodes, please visit https://www.virginwines.co.uk/delivery-info

    Steps to redeem
    To redeem miles in exchange for a Virgin Wines voucher call your local Flying Club helpline (https://www.virginatlantic.com/gb/en/flying-club/contact-flying-club.html).

    Once you have your voucher code and password, go to https://www.virginwines.co.uk/giftcard to place your order. Or call Virgin Wines on 0843 224 1001.

  2. Sam Goss says:

    Has anyone used the £100 off £1000 at Trailfinders on Amex to book economy flights by phone? Are the prices same as airline or are there fees that wipe out the savings! Thanks

  3. Shoestring says:

    Just got 2 success emails from BPme (finally). App was hopeless as usual, it wouldn’t log me in so had to restart everything. Took over 10 mins for the first fill but only 2 mins for the second.

    Came a cropper with SS, 2 wasted journeys to butchers so used a £15 off £100 @Tesco – they have half price leg/ shoulder of lamb & beef joints.

    • I’ve used the BP app three times all at different stations and found it seamless.

      • We’ve used the BP app twice now with no hassles – got 2 more still to go.

        • Shoestring says:

          and now I’m adding a new card’s details to the app & it won’t let me, triple checked details are correct but app sez no

        • iOS or Android?

          The only problem I had with iOS app was not allowing 4-digit security number. Removing the last digit seemed to work.

          Operation at the pump seemless.

        • Shoestring says:

          Android – won’t take a 3 digit code, won’t scan it in, either. Might get my wife to try it on her iPhone but bit of hassle for £10, she’s not into that. The 5th card is on OK, though.

    • Three times so far, the biggest problem I’ve had is free WiFi that stops the app logging on. I need to remember to turn the WiFi off first.

  4. Hey all are the 10,000 virgin miles for life insurance due to be paid out within the next 60 days?

    • Shoestring says:

      Yep in February I think

      • Thanks shoestring. Any suggestions on what to do with 15k virgin miles? I previously used them to top my IHG up to achieve spire. Is IHG or Hilton a poor use of them? I’m not interested in using them to fly virgin.

        • £50 voucher for most Virgin companies is 12,500

        • Mr(s) Entitled says:

          I’ve about 30k and I’m just waiting for my life insurance payout (miles, not cash hopefully!) before shifting them all to Hilton.

          Guess it depends upon which hotel scheme is most attractive to you but like yourself, I can find no real interest in keeping them within Virgin.

        • Shoestring says:

          Just being lazy here but we’ve got 500K+ Virgin miles, top of head roughly how many hotel nights do you reckon we could get with Hilton in typical (SE Asia) Hilton properties with that stash?

        • Shoestring says:

          750K Hilton Honors points? How much is a hotel night in SE Asia then?

        • How many nights in SE Asia for 750k Honor points? How long is a piece of (shoe)string?
          Random examples:
          WA 65k points for a night in June at Bangkok, Conrad 40k.
          Conrad Singapore 60k points in sept.
          Conrad Hong Kong 80k points sept.
          Conrad Macao 50k points in July.

          Remember if you book 5 nights in a row on points you only pay for 4.

          These are all top end of the pricing scale, you could get much more at a standard Hilton or a Doubletree. Hope that gives you an idea of how far your points might go.

        • @Harry, a week if you are lucky at Conrad Samui Residence, over a month at DT Sukhumvit but then you dislike Bangkok. New DT coming to Phuket which should be priced below Hilton Arcadia which is 40k IIRC. It’s in Patong though so hardly tranquil.

        • Shoestring says:

          Cheers found the LL pdf https://loyaltylobby.com/wp-content/uploads/2018/03/Hilton-MPL-2018-03-20.pdf

          I reckon there are some decent 10K/ night hotels where you’d be far from slumming it, eg check out Malaysia

        • I think many of those 10k hotels have since gone up but still a lot of value around Asia. I find cheap to average chain hotels in Asia are comparable to good 4* options in the West. Standards of furnishings, housekeeping and food are generally much better.

  5. @Rob – Off topic I know, but are you aware of Norwegian’s 737 Max that had to do an emergency landing in Isfahan, Iran? Flight was enroute from Dubai to Oslo. Story is interesting for two reasons – the 737 Max is now firmly in the spotlight after the Lion Air incident, and Iran is not going to be the easiest place to ship spares to, given the trade embargo.

    • Plus, if you were on that plane, would you now be banned from going to the US though your transit there was not your fault?

      • The women apparently weren’t allowed in because they didn’t have headscarves (bizarrely, surely they had something they could cover their hair with!) – would that mean they wouldn’t have an Iranian entry? I wonder if the men were able to opt to stay airside too.

      • Not really, as they never technically entered Iran. They’re all airside, probably similar to transiting via a major airport in Europe.

      • Lady London says:

        Yes. I think you would. It would be “computer says no”.

        Same as if your plane to the US gets diverted to Canada, you are in trouble if you do not have the new visa waiver (at least) for Canada (they have one now that is similar to the US one).

  6. ScienceTeacher says:

    The Shop Small offer has gone from my Amex cards. Anybody recall the end date? I thought it was tomorrow (Sunday 16th)!

    Cheers!

    • Shoestring says:

      Don’t worry, it’ll still work (common problem that it seems to disappear from saved offers, won’t be an issue)

  7. 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.

      • 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!

    • 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

  8. 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…

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