Virgin Money has launched a new savings account with a 6.5% interest rate. The Regular Saver Exclusive Issue 5 launched on February 2. 

The fixed rate account pays 6.5% AER until 26 Feb 2027. It is an exclusive product, meaning consumers must have or open a qualifying current account. You can pay in as little and as often as you like up to the maximum of £250 every calendar month. Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: “Regular savers can be a great first step towards building and maintaining a healthy savings habit.

“These accounts typically pay more generous returns, which allows for savers’ hard-earned cash to grow even while inflation remains tricky.

“Virgin Money’s Regular Saver Exclusive pays an inflation-busting 6.5% and sits among some of the highest rates in its category.”

She adds that, as the rate is fixed, it means savers won’t be immediately impacted by any changes to base rate over the next year.

Caitlyn says that savers putting in the maximum £250 each month could earn around £50 extra over the course of a year in this account compared to one paying the Moneyfacts Average Savings Rate, which currently stands at 3.31%.

She says: “Although higher rates are available elsewhere, they are typically variable which could leave them more susceptible to reductions.

“Before opening any account, savers should read the terms and conditions carefully.”

You can manage the account by using the internet and mobile banking, calling the bank or visiting a branch.

You can only have one Regular Saver Exclusive opened in your name at any time and you can only pay into your account by electronic bank transfer.

The account is available to open now.