Virgin Money’s 25 months free banking

What it is

New customers switching their main business account, and start-ups within twelve months of trading, get 25 months of free day-to-day banking on the Virgin Money Business Current Account. The high-street norm is twelve.

Separately, the M Account for Business can cost nothing indefinitely for businesses under £1m turnover, subject to qualifying criteria — a different and in some ways better proposition.

The conditions, which are the whole story

• Eligibility: new customers switching their main business account, or start-ups within 12 months of trading, under a turnover ceiling.
• Cash is capped at £250,000 a year within the offer. Above that you move to per-item charges.
• International and CHAPS payments are excluded and charged from day one.
• At month 26 you move to the standard Business Banking Tariff Guide.

Who it genuinely helps

• Start-ups that need branch access and would otherwise pay from month 13 elsewhere.
• Switchers moving from a paid high-street account, where the saving is real and immediate.
• Cash-taking businesses under the £250,000 annual cap, who get counter access free for two years.

Where it falls short

• It ends. A permanently free account is free for longer than 25 months, by definition.
• Cash is capped at £250,000 a year within the offer.
• International and CHAPS excluded, so an importer pays from day one.
• Eligibility is narrow — genuine switchers and new start-ups only.

What else does this

Barclays, Lloyds, NatWest and HSBC all offer around 12 months. Santander also offers 12, then £9.99 a month.

Starling, Monzo Lite and Mettle are free permanently, with no offer to expire.

Virgin’s own M Account for Business can be free indefinitely under £1m turnover, which for many businesses is the better Virgin product.

Our verdict

The longest offer on the high street, and genuinely valuable to a narrow group. For a start-up that needs a counter and a branch, 25 months against 12 is a real saving at the point cash is tightest.

But the comparison people actually make is wrong. They weigh 25 months against 12 months, when they should weigh it against forever. Starling, Monzo Lite and Mettle never start charging. The Virgin offer only wins if you value branch access, counter cash handling or a lending relationship enough to pay for them from month 26.

And if you are under £1m turnover, look at Virgin’s M Account first — free indefinitely rather than free for two years is a better shape of deal.

Read our full Virgin Money review →