Virgin Money

Virgin Money may be a relatively new player when it comes to financial services, but the competitive products and services available are getting this company a lot of attention.

Offering credit cards, a range of insurance options, superannuation, home loans and a savings account option that have all received industry praise, using Virgin Money for your savings could be a valuable investment.

In fact the Virgin Saver account was awarded Money Magazine’s esteemed “Best Savings Account” for 2011, beating out stiff competition from other online saving accounts and high interest saving options

To give you an idea of how the Virgin Money savings account matches up to other options, here is a closer look at the different features it offers and who they may benefit.

Features Of The Virgin Saver

This online saving account gives customers a headstart on their savings, offering an introductory interest rate of 5.85% p.a. for the first four months.

It then reverts to a competitive 4.65% p.a., a cut above the CBA NetBank Saver, NAB iSaver and Westpac eSaver accounts.

Unlike some saving accounts, interest is calculated daily and paid monthly, which means that you get the most out of your money even if you have to dip into the account.

The Virgin Saver also offers compounded interest and saving amounts up to $1 million are covered by the Australian Government Guarantee for more financial security.

While this means most people will not have to worry about reaching a maximum account balance, the Virgin Saver only allows one linked account for all deposits and withdrawals.

This condition could be an issue for people who have several different everyday account options and would prefer to manage their finances individually. On the other hand, any account with an Australian financial institution can be linked to the Virgin Saver, so it does not matter who you normally bank with.

The nominated linked account can also be changed at any time online, along with any automatic savings plans and account details, so if your situation does change it should just be a matter of logging into your Virgin Saver account and updating things accordingly.

As an online savings account, access is limited to internet and phone services, with more features available online. For people who do want to use the 24-hour phone line, the Self Service option will allow people to:

• Check the account balance and recent transactions
• Transfer funds to and from the nominated linked account
• Check that the nominated linked account is activated; and
• Change the account PIN

But like most online saving accounts, there is much more access through the internet banking option.

The Virgin Saver is a competitive savings account option with a great introductory rate and strong ongoing interest rate that can work as an incentive for your savings.

This account would be ideal for anyone who would like to set up a savings option that they will not need to manage or think about very often.