Savers who are Manchester United fans may be tempted by a new one-year fixed savings account paying 3% if their team triumphs next season – but it's almost certainly not worth it, even for die-hard fans.
Virgin Money has today launched a new one-year fixed savings account paying 1% AER interest for a year, boosted to 3% AER should Man Utd win the Premier League and FA Cup next season.
But with odds of United winning the double at 20/1 you're likely to be better off opting for the top-pick one-year fix paying 1.86%. See our Savings Account guide.
How does the interest rate stack up?
As they say, the devil's in the detail, so here's how the interest would work:
- If United don't win the double – The 1% rate is guaranteed for one year meaning that £10,000 deposited in the account on 20 July 2017 will earn £100.05 interest.
- If United do win the double – The rate of 3% will be applied, earning £300.40 on the same amount.
The top one-year fixed savings account is currently 1.86% from OakNorth Bank, which would earn £186 interest on £10,000. So if Man Utd fail to win the double next season, the standard 1% interest rate pales in comparison. To see how other accounts compare, see Fixed Savings Accounts.
- If Man Utd win one of the trophies the standard rate of 1% interest applies.
- The 3% 'Double Champions savings rate' will be applied to any money you've saved in the account, backdated from the date the account was opened, should Man Utd win the domestic double.
- No withdrawals are allowed during the fixed term.
- Savers can open the account online with just £1 up to a maximum of £1,000,000 – though your money's only protected up to £85,000 under the Financial Services Compensation Scheme.
- The account is 'limited issue', so it can be withdrawn at any time. When this happens there'll be a limited window for making additional deposits, meaning savvy fans won't be able to deposit big amounts should the team be flying high halfway through the season.
- Interest is paid on 5 August 2017 (a week before the Premier League season begins), and at maturity on 20 July 2018.
How likely is it that Man Utd will win the double next season?
Man Utd last won the Premier League and FA Cup back in 1998/99 (they actually won the treble). Bookmakers are currently offering 20/1 odds on the team winning the double.
This isn't the first time Virgin Money has offered such an account. Last year it offered the Manchester United Champions Bond which paid 2.5% if they won the Premier League – but Chelsea took the title.
What else does the account offer?
Account holders will be entered into monthly prize draws to win United memorabilia, tickets and more. Savers are guaranteed 10 entries into the draw each month, with one extra entry for every £50 in the account.