Virgin Money launches new digital bank with savings accounts

author-avatar By on April 15, 2021
Virgin Money launches new digital bank with savings accounts

New savings and transaction accounts are entering the market, with Virgin Money Australia launching its own digital bank.

Having already offered credit cards and balance transfers, insurance, superannuation and home loans, Virgin Money - which is owned by Bank of Queensland - has launched its first ever transaction account along with two different savings accounts:

  • Virgin Money Boost Saver: a linked savings account with a maximum interest rate of 1.20% p.a, pending Virgin's bonus interest criteria 
  • Virgin Money Grow Saver: a savings account that does not need to be linked to the transaction account with a bonus interest rate up to 0.65% p.a 
  • Virgin Money Go Transaction: a transaction account with no monthly fees and eight Virgin rewards points on every purchase, direct debit and BPAY payment 

The 1.20% p.a total interest rate offered by the Boost Saver account is among the most competitive in the market for non-introductory savings accounts, only beaten by the likes of the ING Savings Maximiser (1.35% p.a), the AMP Saver Account (1.25% p.a) and matched by the 86 400 Save Account (1.20% p.a). 

The table below features savings accounts with some of the highest interest rates on the market.

These new accounts can be signed up for in minutes according to Virgin Money and come with each of the three main mobile wallet services (Apple PayGoogle Pay and Samsung Pay). 

Transaction account customers will also be able to earn eight rewards points per spend on everyday purchases - including direct debits and BPAY payments - through the Virgin Money Rewards scheme.

However, to earn these rewards points, customers need to meet certain criteria each month, which varies depending on age.

For those aged over 25, this criteria includes the requirement to deposit at least $2,000 into the transaction account and make at least five purchases.

Virgin Money CEO Greg Boyle said customers want to be supported for doing the right thing while being valued for their loyalty.

“Our research told us that rewards are important to customers, especially when it comes to earning points on everyday purchases, so we’re offering eight points per transaction for our customers which is the best offer of its kind in market."

Virgin Group Founder Sir Richard Branson said the release of this new digital bank shows Virgin Money has the ambition to challenge the financial industry status quo. 

"The new Virgin Money Australia digital bank is the antithesis of a traditional bank: it embraces simplicity and rejects the notion of financial complexity," Mr Branson said. 

"I am so proud of the Virgin Money Australia team for living and breathing our DNA when designing and building the new digital bank, and keeping the customer at the heart of their decision making.”

Related: 8 tips to earning more rewards points

All new eligible customers who open a Virgin Money Go account before 30 June 2021 will be rewarded with 5,000 bonus points, and the app will also come with features designed to help customers meet savings goals. 

Mr Boyle said the bank will also offer personal finance management tools designed to help customers improve their financial fitness.

“When features such as spend tracking and goal setting are utilised, we expect customers to reduce their credit card debt, and increase their savings," he said.

"Overwhelmingly, customers told us they don’t feel loved by their bank, so we’ve designed a banking experience with the customer at its heart, allowing Australians to bank like never before.”

Virgin Money home loans

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Reward Me Home Loan Fixed 2 Years ($300k+) (Principal & Interest) (New Customer)

VariableMore details

Reward Me Home Loan (Principal and Interest) ($75k-$500k, LVR < 80%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of October 23, 2021. View disclaimer.


Photo via Virgin Money 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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