Virgin Money launches best-buy savings accounts

Virgin Money has launched two new savings accounts, days after completing the deal to take over Northern Rock. But savers who already have cash in Northern Rock accounts need to be aware that the two brands count as one for the purposes of the Financial Services Compensation Scheme (FSCS), which means only one set of protection applies. The new Virgin Easy Access Saver and Virgin Easy Access Cash Isa both pay 2.85% interest, propelling both into the Moneyfacts savings best-buy tables. The accounts are available in Northern Rock branches, online, by post and over the phone, with the interest rates the same in all cases. These are the first Virgin Money products launched since the company formally acquired Northern Rock on 1 January , following the announcement in November that the bailed-out bank was being sold for £747m. While the new accounts are branded Virgin Money, they are personal deposit accounts with Northern Rock. The FSCS – the official safety net for customers of financial firms that have gone bankrupt – protects customers with these accounts under Northern Rock's existing scheme membership, up to a maximum of £85,000 per person. Jayne-Anne Gadhia, chief executive of Virgin Money, said: "These new savings products are designed to be simple, fair and transparent. They have an attractive headline rate, without a bonus, offering good value for customers. "There are no differences in rates whether the customer chooses an Isa or a standard savings account. What's more, customers can choose to operate their account online, through a branch or over the telephone."