Virgin ups rates on cash ISAs

Virgin Money has slashed the rate on its Cash ISA, with customers now only getting 1.75%, compared to a previous 2.15%, but Virgin has rolled out some new rates that are far more pleasing to those looking for relatively risk-free savings.

According to Moneywise's comparison site, Virgin's five-year fixed rate Cash ISA, paying 2.75% AER, is a current best buy. For a shorter term investment, Virgin's one-year fixed rate Cash ISA is paying 2%, while the three-year fixed Cash ISA is offering 2.2%.

Currently, the best cash ISA rate is 2.25% from NS&I, though this product will see a rate drop (down to 1.75%) on 12 September, NS&I announced.

Elsewhere on the market, Britannia's Fixed Rate ISA (to 31/07/2014) offers 2.35%, and Coventry Building Society's Fixed Rate ISA pays 2.35%. However, both accounts require a minimum deposit of £5,760, whereas Virgin's can be opened from £1.

Virgin Money's new range of bonds includes a five year Fixed Rate Bond paying a rate of 2.75%. If you are prepared to put your money away for slightly longer, Skipton Building Society's seven-year bond is offering a market-leading rate of 3.5%.

Other products launched by Virgin include a one-year fixed rate bond offering a rate of 1.75%, and a three-year fixed rate bond offering a rate of 2.2%.

There are better rates on the market with First Save's one year Loyalty Bond offering 2.15%, and ICICI Bank's three-year SuperSaver Bond offering 2.55%.

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