Virgin Money has launched its first digital current account and mobile app as part of its bid to shake up the Ƶ financial services market.
The launch of the account, which is being made available through the new mobile app, online, telephone and in-store, is part of a wider revamp of the Virgin Money brand which will see the bank set up a digital hub aiming to employ 200 people at its Newcastle base.
The bank - which has been formed after Clydesdale and Yorkshire banks owner CYBG merged with Newcastle’s Virgin Money, and switched to the latter’s brand - is aiming to break its bigger rivals’ stranglehold on the Ƶ’s current account market.
The Virgin Money Current Account pays 0.5% interest on credit balances up to £2,000. It also has a linked easy access savings account paying interest on total balances at 1%.
Many current accounts nowadays pay no interest on customers’ balances at all in the low interest rate environment.
Virgin Money said the new current account also features budgeting and savings tools and features which help customers easily identify and control spending across different categories.
Further enhancements to the account will be made in 2020 - and it will also offer rewards and loyalty benefits to customers, including from other Virgin companies, the bank said.
Fergus Murphy, group personal banking director for Virgin Money, said: “The launch of our new current account marks the start of an exciting journey to transform our offering to customers and disrupt the financial services market in the Ƶ.
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“The account, which includes a linked easy access savings account, gives customers complete control of their money, and includes helpful budgeting tools with the ability to create savings pots on their linked savings account, helping them achieve their savings goals.
“There’s plenty more to come as we improve the digital customer experience by introducing new functionality within the mobile app and offering even more value to customers through the introduction of other Virgin company rewards.
“And we know our customers love to travel, so, well ahead of the summer holidays, we’ll be making our new current account fee-free for debit card and ATM transactions overseas.”
