Virgin Money presents a compelling option for UK SMEs seeking a business banking tool that combines advanced digital tools with the stability of a well-established bank.
The M Account, free of monthly charges, is specifically designed for startups and small businesses. It offers seamless integration with popular accounting software, facilitating efficient financial management. Additionally, the account features attractive benefits such as cashback incentives and a simplified account switching process.
This review will assess Virgin Money’s effectiveness in meeting the varied needs of small and medium-sized enterprises, focusing on its features, pricing, and suitability for different business scenarios.
Virgin Money M Account for Business
Monthly Fee
£6.50
Bank Transfers
£0
Card Purchases
£0
Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Virgin Money account via the web, mobile app or telephone
Virgin M for Business Review Verdict: Should You Choose it?
Virgin Money’s Business Account is a compelling choice for UK SMEs, blending advanced digital features with traditional banking services.
The fee-free M Account for Business is especially advantageous for startups and sole traders, offering cost-effective digital banking solutions and cashback rewards.
However, the associated fees might be a significant consideration for businesses that handle cash transactions frequently, particularly when compared to the broader range of fee-free options available from digital banks like Starling or Revolut.
Virgin Money positions itself as a robust hybrid option for businesses that value the convenience of digital tools alongside the assurance of physical branch access. However, it has a smaller branch network than traditional high street banks.
Virgin Money Business Account At A Glance
The Virgin Money Business Account caters to diverse business requirements and varying account types. Here’s a concise breakdown of the primary features across each account, enabling business owners to identify the most suitable option for their specific needs swiftly:
| Feature | Details |
|---|---|
| Best For | M Account: Digital-first sole traders, startups, trades Business Current: Growing SMEs Business Choice: Larger firms needing more support Charities/Clubs: Fee-sensitive nonprofits |
| Account Types | M Account for Business: Fee-free, digital-first for turnover < £1m Business Current Account: 25 months fee-free, for turnover < £6.5m Business Choice Account: For turnover > £6.5m Professional Firms Client Account: No monthly fee, supports client funds Charities, Clubs & Societies: Fee-free under £1m turnover or 10 transactions/month |
| Monthly Fees | M Account: £0 Business Current: £0 for 25 months then £6.50 Business Choice: £6.50 Professional Firms: £0 Charities: £0 (limits apply) |
| Transaction Fees | Varies depending on account |
| Cashback & Perks | 0.25% cashback on M Account debit card spend 0.35% on Business Current & Choice Extra cashback and discounts for tradespeople (M Account only) |
| Overdrafts & Charges | Unplanned borrowing: 29.25%–33.51% EAR + £25/day if overdrawn by £25+ Returned items: £7.00 per item |
| Card & Payment Tools | Business Debit Mastercard Supports Apple Pay, Google Pay Free UK transfers via Faster Payments (up to £30,000 |
| Digital Banking Features | Online banking + mobile app Instant payment alerts, budgeting, in-app cheque scanning M-Track dashboard for cash flow |
| Integrations | Directly integrates with Xero, QuickBooks, Sage Free trials on some plans Open Banking API with developer portal |
| Customer Support | Phone (long wait times reported) In-app chat, branches, Post Office access Help centre and online account management |
| FSCS Protection | Up to £85,000 per business customer |
| Learn More | Visit Virgin Money |
Virgin Money Business Account Pros & Cons
- Established UK Bank: Virgin Money is a reputable FCA-regulated institution. It offers FSCS protection up to £85,000, ensuring security for your business finances.
- Diverse Account Offerings: Tailored solutions are available for both startups and established enterprises, ensuring a suitable account for every business stage.
- Strong Digital Banking Tools: Enhanced mobile and online banking features streamline financial management with instant payment notifications.
- Fee-Free Digital Banking: The M Account for Business eliminates monthly fees and offers free digital transactions, optimising cost-efficiency for small businesses.
- Cashback and Discounts: Benefits such as cashback on purchases and discounts provide added value, especially for tradespeople.
- Transaction Fees: Charges for manual transactions, cash deposits, and cheque handling may deter some businesses.
- Limited Branch Network: Fewer branches than major banks might inconvenience those who prefer in-person services.
- Mixed Customer Service Reviews: Variability in response times and a low Trustpilot score highlight potential customer support challenges.
- High Overdraft Fees: Exorbitant fees on unplanned borrowing necessitate vigilant cash flow management to circumvent financial strain.
Is the Virgin Money Business Account Right for Your SME?
The Virgin Money Business Account is optimised for small to medium-sized enterprises (SMEs) with an annual turnover under £1 million, making it an excellent choice for startups and sole traders due to its fee-free digital banking. The account’s hybrid model, combining online tools with branch access, caters well to those seeking both digital convenience and traditional banking services.
Conversely, this account may not suit businesses with extensive international dealings due to its limited support for international transactions. Companies requiring a comprehensive branch network might find Virgin Money’s offerings inadequate compared to major high street banks. Additionally, businesses that handle cash frequently could incur higher transaction fees, diminishing the attractiveness of this option for more conventional business models.
Virgin Money Business Account Key Features
Virgin Money Business Accounts cater to the diverse requirements of SMEs across the UK, offering several compelling advantages:
No Monthly Account Fee: The M Account for Business stands out by eliminating monthly fees for startups and small businesses with an annual turnover under £1 million, providing a cost-effective alternative to competitors like Starling Bank, which lacks comparable traditional banking support.
M-Track Dashboard: This feature offers immediate financial insights, which are essential for managing cash flow efficiently in small businesses. It allows real-time tracking of income and expenses, negating the need for additional costly financial software.
Cashback Incentives: The M Account provides 0.25% cashback on debit card transactions, with select accounts offering up to 0.35%. This feature notably benefits businesses aiming to optimise returns on regular expenditures, distinguishing Virgin Money from banks like Barclays, which typically exclude cashback on business accounts.
Digital and Traditional Banking Access: Virgin Money merges robust online and mobile banking services with the availability of physical branches and Post Office access. This hybrid model suits businesses that appreciate digital convenience alongside the personal interaction offered by traditional banking, a combination rarely seen in digital-only banks like Monzo.
Understanding Virgin Money’s Business Account Fees
Virgin Money’s business accounts offer a competitive fee structure designed to cater to businesses of varying sizes. Below is a detailed breakdown of the primary costs associated with each account type:
| Account Type | Account Type | Transaction Fee | Learn More |
|---|---|---|---|
| M Account for Business | £0 | Free auto debit/credit £0.95 manual debit/credit | Visit Virgin Money |
| Business Current Account | £0 for 25 months, then £6.50 | £0.30 auto debit/credit, £0.70 manual debit/credit | Visit Virgin Money |
| Business Choice Account | £6.50 | £0.30 auto debit/credit, £0.70 manual debit/credit | Visit Virgin Money |
| Charities, Clubs & Societies Account | £0 for charities with an annual turnover of less than £1 million, otherwise £6.50. | Free everyday banking for charities with an annual turnover of less than £1 million, otherwise: £0.30 auto debit/credit, £0.70 manual debit/credit | Visit Virgin Money |
The M Account for Business offers fee-free digital banking, making it an ideal choice for startups and small businesses seeking affordability and accessibility. However, companies that frequently handle cash or cheques might find the manual transaction fees to be on the higher side.
Virgin Money’s approach of blending digital convenience with traditional banking services needs careful consideration to determine if it aligns cost-effectively with your specific transaction habits. This hybrid model can be particularly beneficial for businesses seeking a balance between online and in-person banking services.
Ease of Use
The Virgin Money Business Account is tailored for the modern business landscape, offering a streamlined setup and management process. Its robust online banking platform and user-friendly mobile app ensure easy access to account details, transactions, and budgeting tools, enhancing operational efficiency. This system is fully compatible with leading accounting software like Xero and QuickBooks, significantly simplifying invoicing and cash flow management tasks.
Virgin Money provides branch access for those who prefer traditional banking methods, although it’s worth noting that their network may not be as extensive as some of the larger banks. The mobile app is particularly efficient for daily banking operations, easily supporting activities such as cheque deposits and payment setups. Additional features include instant payment notifications and in-app cheque scanning, further streamlining the banking experience.
Virgin Money integrates digital tools with traditional banking services, presenting a versatile banking tool for businesses that value quick, online access and the reliability of face-to-face interactions. This combination ensures that the Virgin Money Business Account meets a broad range of business banking needs, making it a compelling choice for UK-based businesses seeking efficiency and convenience in their financial operations.
Integration with Accounting Software
Virgin Money seamlessly integrates with leading accounting platforms such as Xero, QuickBooks, and Sage. This facilitates streamlined bookkeeping and financial management, enhancing operational efficiency. The integration allows businesses to:
- Sync financial data in real-time, ensuring accurate and up-to-date records.
- Simplify tasks such as invoicing and cash flow management.
- Thanks to the M-Track Dashboard for immediate financial insights, which reduces the need for additional costly financial software.
This feature is particularly beneficial for businesses prioritising efficiency. It distinguishes Virgin Money from banks like Barclays, which typically exclude such integrations on business accounts. Although similar integrations are available through Revolut, Virgin Money’s established banking infrastructure adds a layer of reliability.
How Secure is Banking with Virgin Money?
Virgin Money prioritises the security of its business customers by implementing a robust security framework.
Deposits are safeguarded up to £85,000 per customer under the Financial Services Compensation Scheme (FSCS), providing an essential safety net for your business’s finances.
Key security features include two-factor authentication, which requires a one-time passcode for significant transactions, thereby enhancing their security.
Moreover, Virgin Money secures your sensitive information with advanced data encryption and automatic sign-out features. As a well-established UK financial institution, Virgin Money adheres strictly to data protection laws, further ensuring the safety and confidentiality of your business assets.
How Does Virgin Money Support Its Business Clients?
Virgin Money offers a comprehensive suite of customer support options tailored to the diverse requirements of business clients:
- Phone Support: 0800 121 7365 is available Monday through Saturday from 7 a.m. to 9 p.m. and Sundays from 10 a.m. to 5 p.m. for all account-related enquiries.
- Live Chat: The mobile app offers immediate assistance, providing a quick and convenient way to resolve queries.
- Branch Visits: Personalised face-to-face services can be accessed nationwide at any Virgin Money branch.
- Post Offices and Banking Hubs: These locations offer extended banking services, enhancing accessibility for business account holders.
- Social Media: Engage with Virgin Money through active support channels on Instagram, X (formerly Twitter), Facebook, YouTube, and LinkedIn.
While Virgin Money’s structured complaints procedure is designed for swift issue resolution, it is important to note that there have been reports of prolonged waiting times for phone support. This may pose a challenge for those in need of immediate assistance.
How Do Customers Rate Virgin Money’s Business Accounts?
Virgin Money’s business accounts have garnered mixed feedback, achieving a rating of 2.5 out of 5 on Trustpilot, based on reviews from over 8,000 users.
The bank is praised for its advanced digital tools and seamless integration with accounting software, attributes highly valued by tech-savvy SMEs.
On the flip side, several users have raised concerns about long wait times for customer support and challenges in managing their accounts effectively.
This spectrum of feedback underscores that while Virgin Money excels in providing robust digital solutions, businesses that require prompt customer support might face significant delays. This is crucial for companies that rely on swift and efficient service.
What Are the Eligibility Requirements for a Virgin Money Business Account?
To qualify for a Virgin Money Business Account, your business must meet specific eligibility criteria tailored to your company’s size and operational needs:
- UK Residency: Essential for business registration and the account holders, who must be UK residents.
- Age Requirement: The primary account holder must be at least 18.
- Annual Turnover:
- M Account for Business: Optimal for businesses with an annual turnover of less than £1 million.
- Business Current Account: Suitable for businesses with a turnover under £6.5 million.
- Business Choice Account: Ideal for businesses exceeding £6.5 million in turnover.
- Business Type: This account caters to various business structures, including sole traders, partnerships, and limited companies.
For example, a startup with an annual revenue of £500,000 would find the M Account suited to its needs. In contrast, a larger enterprise with a turnover of £7 million would derive greater benefits from the enhanced features of the Business Choice Account.
How to Apply for a Virgin Money Business Account: Step-by-Step
- Prepare Required Documents: Begin by collecting all necessary documents. For personal identification, you’ll need a passport or a driving licence. A utility bill or bank statement is also required for proof of address. If applicable, gather your registration details and financial statements for business applications.
- Online Application: To initiate your application, navigate to the Virgin Money website. To avoid delays, it’s crucial to accurately input all business and personal details.
- Identity Verification: Verify your identity by uploading scanned copies of the required documents. Be prepared to supply additional documentation if Virgin Money requests it, ensuring a smooth verification process.
- Review and Submit: Before submitting your application, carefully review all the information you’ve entered. Ensuring completeness and accuracy at this stage is vital to prevent any delays or potential rejections.
- Application Processing: Virgin Money typically processes applications within a few business days. However, more complex cases may require additional time.
- Approval Notification: You will receive an email confirmation once your application is approved. This email will include your new account details and instructions for accessing Virgin Money’s online banking services.
- Next Steps: Set up your online banking and mobile app after approval. For enhanced financial management, consider integrating any essential accounting software.
How Does Virgin Money Compare to Other Business Banks?
| Feature | Virgin Money | Starling Bank | Revolut Business | Barclays Business |
|---|---|---|---|---|
| Monthly Fees | From £0 | £0 | From £10 | From £8 |
| International Fees | 2.75% on card transactions | £0 | 0.4% – 2% | 2.75% |
| Overdraft Options | Available, fees apply | Not offered | Not offered | Available, fees apply |
| Customer Reviews | Mixed (Trustpilot: 2.5/5) | Positive (Trustpilot: 4.3/5) | Mixed (Trustpilot: 3.9/5) | Mixed (Trustpilot: 3.7/5) |
| Learn More | Visit Virgin Money | Visit Starling | Visit Revolut | Visit Barclays |
Virgin Money’s no-fee M Account is particularly attractive for small businesses looking to reduce banking costs. However, its international transaction fees of 2.75% are higher than those of Starling and Revolut, which could disadvantage businesses engaging in global transactions.
Starling Bank excels with its robust customer satisfaction and zero international fees, making it a top choice for digitally focused companies. Revolut may impose higher costs for comprehensive services while offering flexible pricing plans and advanced features.
Conversely, Barclays offers a traditional banking model with a broad branch network but charges a monthly fee starting at £8. Each bank provides distinct advantages tailored to meet varied business needs and preferences.
Virgin Money Business Banking FAQs
How do I switch from another bank to Virgin Money?
Switching to Virgin Money is streamlined through the Current Account Switch Service, which transfers all existing payments and automatically redirects incoming payments to your new account. This service typically completes within seven working days and is designed to make the transition as smooth as possible, ensuring that your business operations continue without interruption.
What is the overdraft approval process?
Overdraft applications at Virgin Money are evaluated based on your business’s creditworthiness and financial history. Be prepared with recent financial statements, and expect a decision within a few days. This process ensures the overdraft facility is tailored to meet your business’s needs and financial situation.
Are there any fees for using the M Account for Business?
The M Account for Business provides fee-free digital banking, although some transactions, like manual debits or cash deposits, incur fees. Refer to the tariff guide for a detailed breakdown. This account is ideal for businesses looking to manage their finances efficiently while minimising costs.
How long does it take to open a business account with Virgin Money?
Opening a business account with Virgin Money usually takes a few days, assuming you have all the required documents, such as identification, proof of address, and business registration details. This quick and efficient process helps you quickly get your business banking operations up and running.
Can I integrate my Virgin Money account with accounting software?
Your Virgin Money account can be integrated with major accounting software platforms like Xero and QuickBooks, enhancing your ability to manage business finances efficiently. This integration supports streamlined financial management and real-time data syncing, crucial for maintaining accurate business financial records.
