Virgin Money has launched a digital current account and app paying 0.5% interest on credit balances up to £2,000.
The new current account is available through the Virgin Money mobile app, online, telephone and in-store.
Customers will also benefit from a linked easy access savings account paying 1% on balances.
Virgin Money added that the account comes with budgeting, spending and savings tools and customers will also benefit from fee-free debit card and ATM transaction overseas as part of enhancements to the account planned for 2020.
Customers will also be able to pay in cheques electronically through the app using a smartphone camera and will have an Apple Pay & Google Pay enabled contactless debit card. The account charges 19.90% EAR on arranged and unarranged overdrafts.
This is its first offering under the revamped Virgin Money brand as it looks to “break the big banks’ stranglehold on the UK’s stagnant current account market.”
Fergus Murphy, group personal banking director for Virgin Money, said: “The launch of our new current account marks the start of an exciting journey to transform our offering to customers and disrupt the financial services market in the UK.
“The account, which includes a linked easy access savings account, gives customers complete control of their money, and includes helpful budgeting tools with the ability to create savings pots on their linked savings account, helping them achieve their savings goals.