The new fee change is set to take place in a few weeks’ time
A major UK high street bank will be changing the amount it charges certain customers as part of a new fee update in the next several weeks. It comes as the bank will be increasing how much its current account holders will need to pay a month due to an upcoming update.
Virgin Money has announced the new amount customers will be charged, with the amount increasing from £12.50 to £14. The monthly fee will increase by £1.50 and will be rolled out on February 1, 2026, just over eight weeks from now.
If you have a Club M packaged account with Virgin Money, you will have to pay £14 instead of the previous £12.50. This means that customers will end up paying £168 a year just to keep their account open, which is an additional £18 each year compared to what they currently pay.
The price hike is the first increase since February 2021. “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,” a Virgin Money spokesperson said.
“Virgin Money does not earn any commission on the monthly fee,” the spokesperson added. “And, we believe Club M remains one of the best-value packaged accounts on the market.” Other Virgin Money current accounts, such as the M Plus Account and M Account, do not have a monthly fee.
A packaged current account, also known as a premium or reward account, is a type of bank account that combines a standard current account with additional benefits. These benefits usually include insurance products and lifestyle perks, and you pay a monthly fee for them.
Unlike basic current accounts, packaged accounts require a regular fee. This fee can be a small amount or a larger sum, depending on what benefits you get.
They work just like any regular bank account. They let you deposit money, set up direct debits and standing orders, and use a debit card for making payments.
Packaged accounts can save you money if you would normally buy the insurance and benefits on their own, since the total price can be lower than buying each policy separately. But, to find out if it’s the right choice for you, you need to check if you qualify for the insurance policies (like age limits or if certain medical conditions are not covered).
The account is only worth it if you actually use the benefits. If you don’t travel or already have your own insurance, you might be paying for something you don’t really need. Be sure to compare the total monthly fee with the cost of buying similar standalone policies to determine which one offers better value for your needs.
