THOUSANDS of Virgin Money customers will be hit with a monthly fee hike on their bank accounts from today.
Thehigh street lender is raising the price of its Club M packaged account, forcing loyal savers to fork out more cash to keep their perks.
From today, Sunday, February 1, the monthly fee for the Club M account will jump from £12.50 to £14.
It means customers will now have to pay £168 a year just to keep the account open – an increase of £18 annually.
Customers signed up for the package pay a monthly fee in exchange for a bundle of insurance policies and perks.
For example, customers receive worldwide family travel insurance covering the account holder, their partner, and up to four dependants under 18, includingwintersports,golfandweddings.
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They also get worldwide gadget cover for mobiles, cameras, laptops and tablets for the whole family. Breakdown cover is also included.
VirginMoneyalso pays Club M customers interest on their cash. On the current account, you earn 1% AER on balances up to £1,000.
Meanwhile, on a linked saver, you get 2% AER on balances up to £25,000, and 1.50% AER on any amount above that.
AVirgin Moneyspokesperson previously said: “This is the first increase since February 2021, and the new price reflects costs set by the third-party insurers for the benefits provided, such as travel insurance, mobile and gadget insurance and breakdown cover.
“Virgin Money does not earn any commission on the monthly fee, and we believe Club M remains one of the best-value packaged accounts on the market.”
Despite the price hike, packaged accounts like Club M can still be a money-saver for those who actually use the benefits.
Virgin is not the only bank to offer premium accounts for customers.
Nationwide‘sFlexPlus packaged bank account costs £18 a month and offers a host of additional services and perks.
Thesebenefitsinclude worldwide travelinsurance, mobile phone insurance, breakdown cover, and preferential rates on loans and overdrafts.
Meanwhile, Lloyds Bank’sClub Lloyds Platinum account offers worldwide family travel insurance, AA breakdown cover, and mobile phone insurance.
It costs £22.50 a month, plus an additional £5 Club Lloyds fee.