Part of our Virgin Money — Complete Guide 2026 hub.
Virgin Money’s main current account is free to hold, but charges apply for overdrafts and certain payment types. Card use abroad is fee-free from Virgin Money’s side. Here’s a complete breakdown of what you’ll pay in 2026.
Virgin Money Fees at a Glance
| Charge | Amount |
|---|---|
| M Plus Account monthly fee | Free |
| Club M Account monthly fee | £14/month (as of Sept 2026 — confirm current fee) |
| M Account (basic bank account) monthly fee | Free |
| Arranged overdraft | 19.9% / 29.9% / 39.9% EAR variable (risk-based) |
| Unarranged overdraft | See account terms |
| Card purchases/ATM withdrawals abroad (Virgin Money’s own fee) | None |
| UK ATM withdrawal | Free |
| CHAPS outgoing transfer | Fee applies — check current rate |
| Faster Payments | Free |
| Standing order | Free |
| Direct debit | Free |
Always verify the current fee schedule at virginmoney.co.uk — charges can change.
Current Account Options
Virgin Money’s current account range has three distinct products — it’s easy to confuse them, so here’s what each one actually is.
M Plus Account — Free, Everyday Account
The M Plus Account is Virgin Money’s standard free everyday current account. It includes:
- A Virgin Money Mastercard debit card
- Online banking and the Virgin Money app
- Faster Payments, standing orders, and direct debits
- Interest on your current account balance (as of Sept 2026: 1.00% AER on balances up to £1,000 — confirm the current rate before opening)
- A linked M Plus Saver (as of Sept 2026: 1.75% AER on balances up to £25,000, 1.25% AER above that — confirm the current rate)
- Virgin Red rewards points on eligible activity
- Overdraft facility (subject to eligibility and approval)
Paying interest directly on the current account balance is uncommon among free UK current accounts, which is the M Plus Account’s main point of difference.
M Account — Free Basic Bank Account
The M Account is a separate, fee-free basic bank account aimed at people who have little or no credit history, don’t already hold another UK current account, or don’t qualify for a standard account. It doesn’t come with an arranged overdraft or a chequebook, and — unlike the M Plus Account — it can’t be applied for online; applications are by phone or in branch.
Club M Account — Packaged Account
The Club M Account is Virgin Money’s packaged current account. As of September 2026 it costs £14/month (up from £12.50/month before 1 February 2025 — confirm the current fee before signing up) and includes:
- Worldwide family multi-trip travel insurance
- UK and Europe breakdown cover
- Worldwide family mobile and gadget insurance
- No fee for card use abroad or online shopping in other currencies
- Higher-tier Virgin Red rewards points
As with all packaged accounts, it’s worth calculating whether you’d actually use the included benefits. If you already have travel insurance, the fee may not be justified.
Overdraft Charges
Virgin Money uses risk-based overdraft pricing on its arranged overdraft, with your exact rate depending on your financial circumstances. As of September 2026, the published rates are:
- 19.9% EAR variable
- 29.9% EAR variable
- 39.9% EAR variable
Your specific rate is confirmed in your arranged overdraft agreement — always check this directly with Virgin Money, as published rates and tiers can change.
| Bank | Arranged Overdraft Rate (EAR) |
|---|---|
| Virgin Money | 19.9%–39.9% (risk-based) |
| Santander | ~39.9% |
| HSBC | 39.9% |
| NatWest | 39.49% |
| Barclays | 35.0% |
| Lloyds | 27.5%–49.9% (varies by account) |
Figures for banks other than Virgin Money were not re-verified in this review — confirm directly with each provider, as overdraft rates change.
Cost example: Using a £500 overdraft for 30 days at the top Virgin Money rate of 39.9% EAR costs approximately £16. Working this back: £500 × 39.9% = £199.50 per year; £199.50 ÷ 365 × 30 ≈ £16.40. Overdrafts are expensive for sustained use. If you regularly dip into your overdraft, consider a specialist 0% overdraft account — see Best 0% Overdraft Bank Accounts UK.
Foreign Transaction Fees
Virgin Money does not charge its own fee on card purchases or ATM withdrawals made outside the UK — currency is converted at the Mastercard exchange rate, with no separate mark-up added by Virgin Money. This applies to the M Plus Account debit card; Club M additionally advertises no fee for online shopping in other currencies.
Be aware that an overseas ATM operator may still charge its own withdrawal fee — this is outside Virgin Money’s control and will show on screen before you confirm the transaction.
| Bank | Foreign Transaction Fee (bank’s own charge) |
|---|---|
| Virgin Money | None |
| Starling Bank | 0% |
| Chase UK | 0% |
| HSBC | 2.99% |
| Lloyds | 2.99% |
| Santander (Everyday) | 2.99% |
| NatWest | 2.75% |
Figures for banks other than Virgin Money were not re-verified in this review — confirm directly with each provider before travelling.
For travel, Virgin Money’s own fee-free approach now compares well against most high-street banks, though dedicated travel cards from Starling or Chase remain a solid comparison point.
Virgin Red Rewards
The Virgin Money M Plus Account and Club M Account earn Virgin Red points on eligible activity. These can be redeemed through the Virgin Red app for:
- Virgin Atlantic flights and upgrades
- Hotel stays
- Virgin Experience Days
- Shopping and leisure rewards
The value of Virgin Red points depends on how you redeem them — flight redemptions typically offer better value than shopping vouchers. If you’re a frequent Virgin Atlantic flyer, this could add genuine value compared to a zero-reward free account.
Payment Fees
| Payment Type | Fee |
|---|---|
| Faster Payments | Free |
| Standing orders | Free |
| Direct debits | Free to set up and receive |
| CHAPS (same-day guaranteed) | Fee applies — check current rate |
| International wire transfer | Fee applies |
CHAPS is used for same-day large transfers (such as property completions) where Faster Payments would be too slow or exceed the limit.