Virgin Money Digital Bank Adds Savings Lockbox to Australian Accounts

Virgin Money is expanding its digital bank by introducing a new savings feature in Australia, which will be called Lock Saver feature, a report said Thursday (April 28).

The feature was reportedly designed off “extensive customer research.” A study by the company found that 70% of Australian households had saved toward a medium- to long-term goal in the last six months, though less than a third stayed within their budget or spending allowance.

The Virgin Money app will let customers “lock away” the funds in their savings accounts which they don’t need the instant access. To access the money, the account holder gives 32 days notice.

The money in the Lock Saver collects an additional variable notice interest rate of 0.35%, for a total of 1.35%.

Virgin Money Australia’s CEO Greg Boyle said: “It’s a feature that is both innovative and competitive and fills a clear gap in the market. Customers will be able to switch the feature on and off entirely through the mobile app without the hassle of opening or closing an account.”

He added that there would be an extra appeal to young customers, who want a simpler way to set aside money.

See also: Why UK Customers Are Moving to Digital Banks

There have been almost 250,000 U.K. customers switching their accounts through the Current Account Switch Service, with 95,000 joining last October.

Various digital-first service providers were among some of the more substantial gains of 2021.

The last year saw customers making account switches for different reasons than the financial ones like cash incentives, with nonfinancial and service-related things taking the lead, including 51% saying they wanted better online banking facilities.