Virgin Money customer? You're set to be moved to Nationwide in future – here's what's happening
Virgin Money savers and borrowers are set to become Nationwide customers as the lenders have agreed a deal for the building society to take over the bank. It's still early days, but under the plans the Virgin Money brand will eventually be phased out – though there's NO change for existing customers right now.
Earlier this month, the firms reached a "preliminary deal" for Nationwide to buy Virgin Money. The terms of the sale have now been formally agreed, with the takeover set to take place towards the end of 2024. However, the deal still needs to be approved by both regulators and Virgin Money shareholders.
The announcement comes not long after it was revealed that Tesco Bank would become part of the Barclays Group in future, while rival Sainsbury's Bank also recently unveiled plans to stop offering banking services in the future.
Below is everything we know so far about the potential Virgin Money sale to Nationwide.
Existing Virgin Money customer? Don't worry – nothing is changing for now
For the time being, there's NO change to Virgin Money products or services – you can continue to use them as normal. You can also reach out to Virgin Money's customer services with any queries or complaints.
If you're a Virgin Money saver, your savings of up to £85,000 with it remain protected by the UK's Financial Services Compensation Scheme for now. This could change if the sale goes through, though it's too early to say. With Tesco Bank and Barclays, for example, once the sale is complete, if you have savings with both, these will only be covered up to a combined total of £85,000. For more on this, see our Savings safety guide.
Of course, in the meantime, it could be worth taking this opportunity to check you're getting the best possible deal on your banking products and services – see our guides on:
Before switching, remember to check for any exit fees or penalties.
Virgin Money is set to be taken over by Nationwide under the plans, but it's still early days
Nationwide has made an official offer to buy Virgin Money after the two firms reached a "preliminary agreement" earlier this month. The deal is expected to be completed within the final three months of 2024.
Virgin Money currently has around 6.6 million customers, making it the sixth largest high street bank. The planned takeover will see all of Virgin Money's customers – including but not limited to those with current accounts, loans, savings, mortgages and more – transferred to Nationwide over time.
But this won't happen straight away – it's planned that the Virgin Money brand and services will stick around to start with, with the bank operating as its own entity within the Nationwide Group. During this period, which could last several years, Virgin Money customers won't be eligible for any payments Nationwide makes under its 'Fairer Share' scheme.
Nationwide is extending its 'branch promise'
Virgin Money's 91 branches will also be taken over by the Nationwide Group as part of the deal, taking the total under the two brands to a combined 696 branches.
Nationwide, which claims to have the UK’s single largest network of branches, had previously promised to retain a branch wherever it already has one until at least 2026 – and now says it will extend this until the start of 2028.
However, if Virgin Money has already approved branch closures, these would still go ahead as planned regardless of the potential takeover. See our Local bank branch alternatives guide for where to access cash, deposit cheques, and get face-to-face advice.
Additional reporting by the Press Association.
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10 September 2024
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