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Virgin Money 1 Year Bond paying 3% - but only if you bank on the magic of Mourinho

Virgin Money have launched a new Manchester United Double Champions E-Bond paying 3%.  However, there’s a massive catch.  Manchester United have to win both the Premier League and FA Cup to get this rate – otherwise it’s a much less interesting 1%.  However, we’ve worked our Savings Guru magic to come up with a way for you to get 3.85% if this happens and 1.75% if it doesn’t plus still qualify for all the benefits of the account.

In essence, there are three main benefits to the bond:

  • 1% rate for the term
  • 3% rate if Manchester United win the Premier League and FA Cup
  • 10 entries per month in a prize draw to win United Rewards (e.g. match day tickets, signed shirts and hospitality tickets)

Let’s ignore for now the fact that Manchester United haven’t won the double since 1998-99 and that it is a feat that has only been achieved in eight times in the past 120 years! We will focus on the hard financials to achieve the same results.  Instead of the Virgin Money bond, savers should consider this option:

  • Open a Paragon Bank 1 Year bond paying 1.85%
  • Put a bet on Manchester United to win the double at 20/1 with Paddy Power
  • Open a Virgin instant savings account paying 0.75%

Using £10,000 to illustrate, although you can simply multiply or divide the bond and bet to whatever your savings level might be, this works as follows:

£10,000 in the Paragon Bond returns £185 interest

£10 with Paddy Power – potential wins £200

£1 with Virgin instant savings – accesses the same monthly prize draw as the main bond

If Manchester United don’t win the double, savers still have £175 interest (£185 minus the lost bet) so a return of 1.75%.  If they are successful, then savers have earned £385 (£185 interest and £200 from the bet) so a return of 3.85% and still had access to the prize draw.

So, even for hardened Manchester United fans and savers, the bond doesn’t stack up financially, however good Jose Mourinho’s magic might be this season.  One final word, those savers comfortable with Sharia savings products (we recognise not everyone is!), can achieve 2.02% with Al Rayan on a 1 Year Bond and potentially earn 1.92% and 4.02% on the same formula.


About The Savings Guru

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