Virgin Money UK — Complete Guide 2026

Virgin Money Fees 2026 — Current Account, Overdraft and Foreign Transaction Charges

Virgin Money fees explained for 2026 — monthly account charges, overdraft interest rates, foreign transaction fees, and how Virgin Money compares to other UK banks.

Part of our Virgin Money — Complete Guide 2026 hub.

Virgin Money’s standard current account is free to hold, but charges apply for overdrafts, international card use, and certain payment types. Here’s a complete breakdown of what you’ll pay in 2026.

Virgin Money Fees at a Glance

Charge Amount
M Account monthly fee Free
M Plus Account monthly fee Fee applies — check website
Arranged overdraft ~39.9% EAR
Unarranged overdraft See account terms
Foreign transaction fee 2.99%
UK ATM withdrawal Free
Overseas ATM withdrawal 2.99%
CHAPS outgoing transfer Fee applies
Faster Payments Free
Standing order Free
Direct debit Free

Always verify the current fee schedule at virginmoney.co.uk — charges can change.

Current Account Options

M Account — Free

The Virgin Money M Account is the standard current account with no monthly fee. It includes:

  • A Virgin Money Mastercard debit card
  • Online banking and the Virgin Money app
  • Faster Payments, standing orders, and direct debits
  • Virgin Red rewards points on eligible spending
  • Overdraft facility (subject to eligibility and approval)

The M Account is a competitive free account option — the inclusion of Virgin Red points gives it a slight edge over many other free high-street bank accounts.

M Plus Account — Packaged Account

The M Plus Account is Virgin Money’s packaged current account. It charges a monthly fee and includes benefits such as:

  • Worldwide family travel insurance
  • Breakdown cover
  • Mobile phone insurance
  • Higher Virgin Red rewards points

As with all packaged accounts, it’s worth calculating whether you’d actually use the included benefits. If you already have travel insurance, the fee may not be justified.

Overdraft Charges

Virgin Money’s arranged overdraft rate is approximately 39.9% EAR — the standard rate adopted by most UK banks following FCA reforms in 2020 that mandated simple interest-based overdraft pricing.

Bank Arranged Overdraft Rate (EAR)
Virgin Money ~39.9%
Santander ~39.9%
HSBC 39.9%
NatWest 39.49%
Barclays 35.0%
Lloyds 27.5%–49.9% (varies by account)

Cost example: Using a £500 overdraft for 30 days at 39.9% EAR costs approximately £16. Overdrafts are expensive for sustained use. If you regularly dip into your overdraft, consider a specialist 0% overdraft account — see Best 0% Overdraft Bank Accounts UK.

Foreign Transaction Fees

Virgin Money charges 2.99% on all card transactions made outside the UK — the same rate as HSBC and Lloyds.

Bank Foreign Transaction Fee
Virgin Money 2.99%
HSBC 2.99%
Lloyds 2.99%
Santander (Everyday) 2.99%
NatWest 2.75%
Starling Bank 0%
Chase UK 0%

For travel, a specialist card from Starling, Chase, or Wise will save significantly versus using your Virgin Money debit card abroad.

Virgin Red Rewards

Unlike most free high-street bank accounts, the Virgin Money M Account earns Virgin Red points on eligible spending. These can be redeemed through the Virgin Red app for:

  • Virgin Atlantic flights and upgrades
  • Hotel stays
  • Virgin Experience Days
  • Shopping and leisure rewards

The value of Virgin Red points depends on how you redeem them — flight redemptions typically offer better value than shopping vouchers. If you’re a frequent Virgin Atlantic flyer, this could add genuine value compared to a zero-reward free account.

Payment Fees

Payment Type Fee
Faster Payments Free
Standing orders Free
Direct debits Free to set up and receive
CHAPS (same-day guaranteed) Fee applies — check current rate
International wire transfer Fee applies

CHAPS is used for same-day large transfers (such as property completions) where Faster Payments would be too slow or exceed the limit.

Sources

  1. Virgin Money — Fees and charges