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Find out more'I've been earning a pittance on my savings'
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A few years ago I moved some savings into two easy-access Isas with Virgin Money.
In early 2021, I was told the rates would be cut to 0.35% and 0.41% respectively.
I recently realised these have remained unchanged, despite interest rates rising. How is this fair?
Tony from Suffolk
'Providers must offer "fair value" to savers'
Jenny Ross, Which? Money editor, says...
Your frustration is understandable. You told us that in its emails alerting you of the rate cuts in 2021, Virgin Money told you it was ‘determined to keep offering you good value for your savings’.
But in the years that followed you were earning much less interest than you could have been: in July 2023, the average easy-access rate was 1.66%, rising to 2.11% in July 2024.
You complained to Virgin Money about its failure to inform you that you could be getting a better rate from a different account, but it didn’t uphold this.
It said it is ‘your responsibility to be aware of the products available to you and to research the whole of the market, so that you can make an informed decision at the relevant time’.
This seems at odds with the Financial Conduct Authority’s expectation that financial providers make it clear to customers that their money is in the lowest-paying accounts, and that their products offer ‘fair value’.
Unfortunately, as our research has repeatedly shown, high street banks have a habit of short-changing their savers. Smaller providers tend to offer more competitive rates.
Easy-access accounts also typically pay lower rates than you can get by locking your money away in a fixed-term account.
You told us that it was only after your complaint that you received emails from Virgin Money. These stated that you could be earning a higher rate of interest on a different account – three years after you received its initial emails.
We approached Virgin Money about your case. It told us: 'We have a long-standing track record of offering competitive savings rates that are available to both existing and new customers. As well as including the account interest rate on each statement, we also write to all our savers each year with details of alternative products we have available so that customers can consider whether a different account would be more suitable for them.'
It added: 'We keep our rates under regular review and advise our customers to review their products and interest rates regularly to ensure they remain suitable for their individual needs.'
- Find out more: where to find the best savings rates
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