Should you choose the Virgin Money Business Bank Account for your business? What are the pros and cons of this UK-based retail bank? Let’s find out.
Virgin M for Business Review Verdict: Should You Choose it?
Overall, the Virgin M for Business Account offers some enticing features such as the switching service, overdraft, fast opening and lack of a monthly fee but it’s not without its drawbacks.
If you frequently conduct business abroad, this account may not be the most cost-effective option, as its international fees are not as competitive as those offered by alternatives like Revolut or Starling.
The Trustpilot reviews are also some of the worst in the entire sector, suggesting a high level of dissatisfaction with Virgin M from its customers.
Virgin Money Business Bank: Overview
Virgin Money has been around since 1995 and has around 130 branches around the UK. Account holders benefit from exclusive access to online resources and events through a collaboration with Virgin StartUp, a not-for-profit that offers business advice, access to funding, mentoring and community.
Virgin Money offers a number of specialist accounts including:
- M Account for business – aimed specifically at small businesses
- Business Choice Account: – requires annual turnover of over £6.5 million+
- Professional Firms Client Account – for firms that hold and manage funds on their clients’ behalf, such as solicitors, accountants and insolvency practitioners.
- Business Current Account – for business with an annual turnover of less than £6.5 million
In this article, I’ll focus specifically on their M Account for business which is the one appropriate for most SME’s.
About Virgin Money
Virgin Money was founded by Richard Branson but subsequently taken over by the Clydesdale and Yorkshire Bank Group (CYBG). They continue to pay the Virgin Group, still 100% owned by Branson, a licence fees to use the Virgin name since the takeover and the whole group now operates exclusively under the Virgin Money brand.
It is is the UK’s 6th largest bank, and appears to have a clear strategy to connect and cross-sell between the different Virgin brands.
It offers a wide range of products and services including savings accounts, mortgages, credit cards, current accounts, investments, and insurance to individuals, businesses, and corporations.
Virgin Money Business Account Pros & Cons
Pros
- 130 UK Branches
- Overdrafts
- Online, telephone or app-based banking
- competitive interest rates
- 25 months free for new accounts or switchers
- M Account for Business comes with No monthly account fee as well as free day-to-day online banking
- Over a third of customers were able to open a Virgin Money business account on the same day as their application.
Cons
- Does not offer 24/7 customer support
- Fees apply for depositing cash or transacting internationally
- Less locations than the bigger high street banks
- Only available for businesses with an annual turnover of less than £1 million
Virgin Money Business Account Features
The Virgin M Business Current Account includes:
- No monthly fee and free day-to-day online business banking.
- Deposits covered up to £85,000 per business.
- Easy switching with a chosen date.
- 0.25% cashback on debit card purchases.
- Compatible with Apple and Google Pay.
- Integration with Sage, Xero, and QuickBooks.
- Automated business spending categorisation.
- Free UK bank transfers.
- Mastercard discounts.
- In-app cheque scanning.
- Management of scheduled payments.
- Instant payment notifications.
- In-app cheque scanning.
- Expert mentoring and guidance from Virgin Startup.
- Access to the M-Track dashboard for business data management and insights.
- Connection with key business tools and access to expertise from the business network.
Rates and Fees
| Category | Details |
|---|---|
| Monthly Fee | No charge |
| Transactional Charges | |
| Auto Debit (e.g., Standing Orders, Direct Debits) | No charge |
| Auto Credit (e.g., payments into your account) | No charge |
| ATM Deposit (Cash and Cheque Option) | No charge |
| Manual Debit | £0.95 per debit |
| Manual Credit | £0.95 per credit |
| Cheque Remitted | £0.00 via App; £0.55 via Store |
| Cash Paid Out | £0.90 per £100 |
| Cash Paid In | £0.90 per £100 |
| Cash Exchanged | £1.80 per £100 (for amounts >£100) |
| Borrowing Charges | |
| Existing customers with Planned Borrowing | 8.5% per annum over Bank of England Base Rate; EAR 14.7% |
| Other Planned Borrowing | Negotiable |
| Unplanned Borrowing | 29.25% per annum; EAR 33.51% |
| Daily Unplanned Borrowing Fee | £25.00 |
| Arrangement Fee for Loans/Overdrafts | Negotiable |
| Other Charges | |
| Returned Item Fee | £4.00 per item |
| Debit Card Transactions | |
| Debit Card Cash Withdrawal | £0.00 in UK/EEA (Pound Sterling, Euro, etc.); 3.75% min £1.50 for other currencies |
| Debit Card Payments | £0.00 in UK/EEA (Pound Sterling, Euro, etc.); 2.75% min £1.50 for other currencies |
| Limits | Cash limit: £700/day; International Purchases: £10,000/day |
| Additional Services | Night Safe Rental: £60/year or £6/month; CHAPS Payment: £17.50 (Internet Banking) or £25.00 (Store/Telephone) |
| International Payments | SWIFT: £17.50 (Internet Banking) or £25.00 (Store/Telephone); SEPA: £15.00 (Internet Banking) or £20.00 (Store/Telephone) |
| Receiving Money From Outside The UK | SEPA: No Charge; SWIFT within EEA: No Charge for amounts up to £100, £7.00 over £100 |
Can you get an Overdraft with the Virgin M for Business Account?
Yes, you can get an overdraft with the Virgin M for Business Account. Virgin Money offers an automatic unsecured overdraft of up to £1,000 with their M Account for Business.
For planned overdrafts of up to £25,000, the interest rate is 12.20% representative EAR at 11.50% variable interest per year. Additionally, there is a 2.5% establishment fee or a minimum of £120. Keep in mind that businesses requiring larger overdrafts may be subject to further eligibility criteria.
Who is Eligible for the Virgin M Account?
You’re eligible to open an account if the following conditions apply:
- An annual turnover of less than £1million.
- The business must be based and operate in the UK, excluding the Channel Islands, Isle of Man, and Northern Ireland.
- Owners, directors, senior management, and account signatories must be over 18 years old.
- Not currently bankrupt.
- No history of being disqualified as a company director.
Reasons you may not be eligible include:
- Operations or trade with Crimea (Ukrainian territory), Iran, North Korea, or Syria.
- Being a shell bank.
- Primary or secondary business activities in money services (e.g., bureau de change, money transmitters, cheque encashment agencies).
- Involvement in medicinal cannabis-related business.
- Being an unregistered high-value dealer.
- Having nominee shareholders within the business structure.
How to apply for a Virgin Money business account
- Submit an application, either online or at a branch.
- Provide Virgin Money with the information and documentation required, including:
- Financial information, including business turnover.
- Companies House name or registration number (if applicable).
- Three years of personal address history for anyone you want to operate and use this account, plus anyone who owns or controls 25% or more of the business.
- If your business is a Limited Company, Partnership, or a Limited Liability Partnership, this information will also be needed for any Directors, Partners, Members of Senior Management (Chairperson, Chief Executive/Managing Director).
- The authority to apply for this account on behalf of the business.
- A business email and mobile phone number.
- You may need to provide a live selfie and an identity document to confirm who you are with Virgin Money’s identity partners, HooYu.
- Virgin Money will share your information with credit reference agencies to help determine what services they can provide to your business.
- If proof of trading is not provided at the outset, it must be as soon as information becomes available, within 6 months, or your account is at risk of being closed.
- Wait to hear back if you have been approved for an account.
Using the Virgin M for Business Abroad or to Send International Payments
If you’re considering the Virgin M for Business account for its international capabilities, it’s wise to weigh its features with a business-focused lens. This account does offer international payment options and spending abroad functionalities, which can be quite handy. However, given the fees for transactions outside the EEA and the charges for SWIFT and SEPA payments, it’s important to think about how often you’ll be engaging in these activities.
For instance, there are 17.50 charges for SWIFT and SEPA payments, as well as a 2.75% of transaction value, min £1.50 fees for using a debit card abroad
For businesses with frequent international dealings, these fees could add up, potentially making the Virgin M for Business account less cost-effective for this specific use case.
Contact and Customer Service
Virgin Money Business Current Account – 0800 345 7365
Hours: 7 am – 9 pm Monday to Saturday, 10 am – 5 pm Sunday
Telephone banking is available 24 hours a day, 7 days a week
Virgin Money Business Banking Reviews and Ratings
Based on 6,969 reviews on Trustpilot, Virgin Money UK has received a low TrustScore of 1.5 out of 5, indicating predominantly negative feedback from customers.
On Smart Money People, however, they have a higher rate of 4.05 out of 5, based on 1287 overall reviews.
Virgin Money ranks 17/20 on Which Magazines Business Banking ‘Best and Worst’ Survey, taken from a panel of 4,438 members in October 2021.
