How to earn Flying Club miles with the Virgin Atlantic 1 year Flying Club Savings Account

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This article is sponsored by Virgin Money

One of the more interesting ways of earning Virgin Atlantic Flying Club miles is with the Virgin Atlantic 1 year Flying Club Savings Account.

The partnership between Virgin Atlantic and Virgin Money is really developing. We have covered the two new Virgin Atlantic credit cards in depth as they are exceptionally good – read our overview here. The current life insurance deal is also decent with a bonus of up to 25,000 Flying Club miles. It has also just introduced a bonus of up to 22,500 miles for ISA transfers and 8,000 miles for opening a new ISA.

Today we want to look again at the Virgin Money Savings Account, as I was intrigued by the ability of earning miles as you save rather than as you spend.

The Virgin Atlantic 1 year Flying Club Savings Account was launched last year, but the earning rate wasn’t that great initially. Virgin Money relaunched the offer with a far better underlying interest rate.

Full details are on the Virgin Money website here.

How the Flying Club Savings Account works

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 Atlantic Flying Club miles for every £1,000 you save.

Virgin Atlantic 1 Year Flying Club Savings Account review

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 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

When the deal launched in June 2018 it was only paying 1,400 miles per £1,000 you saved, based on an interest rate of 1.19%. The jump to 1.36% is therefore significant.

In general, I would be a buyer of Virgin Atlantic 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!

As always with these offers, if you know that you will generate more than 0.85p per mile when you redeem (which isn’t difficult) this could be worthwhile.

Virgin Atlantic Flying Club 1-Year Savings Account

Are you really paying 0.85p per mile?

The 0.85p per mile valuation only holds if this account is ‘top of the market’.

Looking at Moneyfacts, the top 1 year bonds currently on the market from what I consider ‘blue chip’ institutions (although this depends on your personal definition of ‘blue chip’) are 1.2% – 1.45%. On this basis, the Virgin Money account – at 1.36% – is competitive. You can get higher rates from lesser known financial institutions which also have FSCS protection up to £85,000.

The higher you value a Virgin Flying Club mile, the better this deal looks

Let’s imagine that you’d be willing to pay 1.25p for a Flying Club mile, because you regularly redeem in a particular way which gets you a higher valuation than usual.

On this basis, you’d be getting the equivalent of (1,600 miles per £1000 x 1.25p per mile) 2.0% interest on your money, which is exceptionally high in the current market.

One point to remember is that you won’t receive your miles for a year.  You need to keep in mind the risk of any potential Flying Club devaluation – there isn’t an option to stop the conversion of your interest into miles at the end of the year.

Get access to Virgin Money lounges

You will also get unlimited free access to all Virgin Money lounges if you open a Virgin Money Savings Account. To find your nearest lounge visit the Virgin Money website.

Conclusion

Virgin Money has now put a bit of life behind this product with the increased interest rate and hopefully it will get some traction.  I will be genuinely interested to see how it goes.  You can find out more on the Virgin Money website here.

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 miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

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Comments

  1. I don’t know if it’s confused people that 2020 is a leap year and that BA is releasing award flights at T-354 and that’s how I managed to bag 3 F seats to Miami for Easter weekend next year!

  2. Shoestring says:

    I reckon my special function got deleted as well 🙂

  3. Shoestring says:

    Heard this one from a train dad chum as we were queueing to get season tickets this morning – Adult age is starting at 18 from September (currently 16). Useful if your kids take the train to school.

    Not seen it confirmed elsewhere yet, though.

  4. O/T Some of you may remember from few weeks back that I missed a connection for Praslin island due to BA flight LHR-Seychelles having a technical breakdown, so we were 2h30 minutes late which wasn’t enough for my connection to Praslin. I had tickets for 2h45 after BA flight landing and minimum connection time (int-domestic) at Mahe Airport is 90 minutes. I had to purchase new tickets and wait for nearly 5 hours. Luckily there was a domestic (paid) lounge, so it wasn’t that bad. I submitted a claim via AXA/Amex Plat site for travel incovenience (missed connection). Explained all above. Enclosed an email from BA with the reason for delay, all receipts, incl. lounge access (although it wasn’t a proper receipt just a card slip). And got a reply today that my claim has been approved and will be getting £280 back. Result! I think the key here was that there weren’t any connecting flights available within 4 hours of arrival as the form asked twice to confirm this.

  5. Shoestring says:

    Just had my first 3 Amazon deliveries on the repeat of £25 off 40, mostly cat food! AMEX25OFF.

    In case you missed it over Easter, the great Amex offer is now *repeating* and indeed this the the 3rd time I have used the same offer on each of our family Amazon a/cs, same Gold Amex card can be used on all a/cs to partpay with points. We’ve got 6 a/cs going and I think that makes it 16 successes out of 18 – 1 failed/ got rejected, they failed to successfully deliver the other one but I got a £15 refund and a £25 credit on Chat because they should have tried to deliver it better, no notes through the door or anything.

    Can’t do much about having a cat but at least I can get it cheap cat food, she loves the Felix As good as it gets brand.

  6. Richard Branson says:

    Thanks for the article Rob. I enjoyed reading your new found love for virgin money products. I’m not too sure if your regular readers bought it but I’ll put the cheque in the post tonight. Yours Richard

    • Oi beardy, any chance you letting Rob’s missus having that lump of an island of yours at a reduced redemption rate? Then we can all pop over for drinks and canopies…

      • Richard Branson says:

        I’ve banned Rob from coming to necker Island – he just talks about BA’s new seats and avios points all night – it’s like he has no interest in my airline.

    • Anika will be invoicing you as usual.

      • Richard Branson says:

        Just please don’t send that ‘tax for dummies’ book with your invoice like last time

    • Jimbob says:

      Didn’t Rob state he had 1.5 million Virgin points, and 1.2 million gets you a week in Necker Island for two.
      Tempted for 2020 Rob?

  7. …and canapes even!

  8. OT – in case anyone’s interested, the 2 4 1 I redeemed at the weekend (did I mention my 3 F seats to Miami 😂) was mine but the fees were paid on my OH’s Amex, so nothing has changed there for the moment.

  9. Shoestring says:
    • Lady London says:

      Absolutely outrageous.

      And weasel words by the airport if I ever heard them “currently engaging with those residents through quarterly meetings and are actively investigating active measures…” in other words they’re doing nothing and it looks like just bullying the residents to push through what they want to.

      Someone legal on here will know more than me but if that taxiway had been out of use for more than a certain time – is it 12 years? then surely there would have been a requirement on its re-activation? I think the residents should get compensation. Their properties are definitely blighted now.

      On the other hand if the runway was active when they bought their properties and/or when they were built, this is a sticky one.

      But for the residents this is really really nasty and a health hazard. The airport and / or Southend Council should be ashamed of themselves.

      • Callum says:

        Hear, hear. Who could have ever imagined that buying a house right up against the boundary of an airport could have resulted in planes being there!?

      • How are they blighted? We have properties under a flight path. No longer affects house price or time taken to sell.

        • Lady London says:

          It depends what it was like when they were built or bought. And it depends how long that little track has been out of use before being put into use, or re-activated.

          So yes, relative to what the state of things was when the houses were built or bought, and even with due diligence on buying, depending on how long that is, the houses could now suffer a blight compared to the facts ascertained at the time of building or buying.

          btw @callum I have no sympathy with punters who buy a house next to an active noisy nightclub and then have the deuce to try to get it shut down. that I would not find fair. But re the houses it sounds like that track was never in use, or not in use for a very long time so for me, morally the residents do have a right to get upset and are blighted. Legally though, it depends on timelines assuming due diligence by buyers at the time.

        • Lady London says:

          I’ve lived under Heathrow flight paths and rented for a while where a railway was at the bottom of the garden. But in those cases I bought with eyes open, due diligence and no deterioration by increased or enlarged use by planes took place while I was there. I would have been fully wrong to complain in those circumstances.

          This one sounds as though it is an expansion in use to a new location and that despite due diligence on buying or building there has been a deterioration that has not been something residents could have predicted even with due diligence. It comes down to how long there hasn’t been that activity in that part of the airport.

        • Shoestring says:

          yep I reckon it was bringing that little track back into increased use that is making the closer residents’ lives a misery

          looking at the airport numbers, it was give or take 1 million for most years after 2010 but has now gone up to 1.5m, with 2m projected by 2020 – so a significant increase in aircraft movements, not that it was a graveyard 10 years ago

        • Callum says:

          Lady London – it’s an airport. It’s irrelevant how it used to be, why would you expect them to never expand?

          As to “legally”, I’m curious what you’re basing that on?

  10. OT: Scotland APD changes delayed again. It will probably remain so as long as SNP dependent on Greens.
    https://www.bbc.co.uk/news/uk-scotland-scotland-politics-48026435

  11. Crafty says:

    OT (no bits): Does anyone know the last day this quarter to safely switch Clubcard preference back to vouchers? No sign of a Virgin Atlantic Flying Club “auto tippers” bonus yet. The quarter ends on 2nd May but I don’t know whether it’s safe to leave it until that date, and don’t want to inadvertently let it auto-convert to Flying Club (made that mistake a few quarters ago) or switch back too early (made this mistake several times!).

    • I’ve switched back now, if it’s going to post I find it does it by about a month before so normally switch 2-3 weeks before the end of the period.

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