Virgin Money business banking review
Virgin Money is a UK-based retail and business bank, offering a wide range of personal and business banking services. It provides current accounts, savings, mortgages, business lending, and investment solutions, aiming to combine traditional banking with modern digital experiences.
Key features of Virgin Money
1. Personal and business current accounts
- Personal current accounts: Includes standard, student, and premium options.
- Business current accounts: Tailored for SMEs and startups.
- FSCS protection up to £85,000: Ensures deposit security.
- Virgin Money M Plus Account: Offers 2.02% AER interest on balances up to £1,000.
- Overdraft and credit facilities: Subject to eligibility and credit approval.
2. Business lending and commercial finance
- Business loans: Borrow from £25,001 to £10 million.
- Commercial mortgages: Funding for property acquisitions.
- Asset finance: Helps businesses acquire equipment and vehicles.
- Invoice finance: Unlocks cash flow from unpaid invoices.
3. Savings and investment products
- Instant access savings: Flexible withdrawal options.
- Fixed-term savings: Competitive interest rates for long-term deposits.
- Cash ISAs: Tax-free savings for individuals.
- Business savings accounts: Secure fund management for corporate clients.
4. Digital and mobile banking
- Virgin Money mobile app: Secure banking with real-time transaction updates.
- Online banking: Full functionality for personal and business accounts.
- Integration with accounting software: Works with Xero, QuickBooks, and Sage.
- Fraud detection and security tools: Biometric login, encryption, and instant alerts.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- International payments: Supports SWIFT, SEPA, and foreign exchange services.
- Trade finance: Solutions for global business transactions.
Virgin Money fees and pricing
1. Personal and business current account fees
| Account Type | Monthly Fee | Overdraft Charges | Additional Benefits |
|---|---|---|---|
| M Plus Account | £0 | Variable | 2.02% AER interest up to £1,000 |
| Business Current Account | £0 – £6.50 | Variable | Free banking for 25 months for startups |
2. Transaction fees
- UK bank transfers: Free for most accounts.
- International transfers: Fees apply based on currency and transfer method.
- ATM withdrawals: Free in the UK; fees apply abroad.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: Apply to fixed-term business loans.
- Invoice finance fees: Charged as a percentage of invoice value.
Pros and cons of Virgin Money
Pros
- FSCS protection up to £85,000.
- Competitive personal and business savings rates.
- No monthly fees on personal accounts.
- Strong digital banking features with a user-friendly app.
- Wide range of business finance solutions.
Cons
- Business account fees after the free period.
- Higher international transaction fees compared to fintech banks.
- Strict lending criteria for business loans.
- Limited branch network compared to major high-street banks.
How Virgin Money compares to competitors
| Feature | Virgin Money | Barclays | HSBC | NatWest |
|---|---|---|---|---|
| Personal current accounts | Yes | Yes | Yes | Yes |
| Business banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital banking | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | Yes |
| Cashback rewards | No | No | No | No |
| Ideal for | Individuals, SMEs, startups | Startups, SMEs | Global businesses | UK-based businesses |
Who should use Virgin Money?
- Individuals looking for interest-earning current accounts.
- Startups and SMEs needing affordable business banking solutions.
- Businesses engaged in international trade requiring multi-currency accounts.
- Customers preferring a mix of digital and in-branch banking support.
Our verdict
Virgin Money is a reliable UK bank offering a mix of personal, business, and savings accounts with a strong digital banking platform. Its interest-earning current accounts, business finance solutions, and FSCS protection make it a strong choice for individuals and SMEs.
However, business banking fees after the initial free period and international transaction charges may deter some users. For those seeking a well-rounded banking experience with strong digital features, Virgin Money remains a competitive option in the UK banking market.