Virgin is hoping to attract business to its Virgin One account by warning that saving account rates have hit the lowest level for 125 years.
The lender says the average no-notice savings rate is currently 1.92 per cent, at a time when inflation is running at 2.4 per cent. It argues that the purchasing power of every pound saved is actually being reduced.
And it is recommending its Virgin One account flexible mortgage. By overpaying the mortgage borrowers can earn 6.5 per cent tax free on the money as it reduces the amount of interest charged on the loan.