Savers have just weeks to move cash or face exit fines after the Nationwide and Virgin Money merger. The merger means the two are treated as a single provider under the Financial Services Compensation Scheme (FSCS), the UK's safety net for savers.
FSCS Protection Changes
The FSCS protects up to £120,000 of deposits held by a customer with a single regulated bank or building society in the event of failure. Before the transfer, separate protection is in place for Virgin Money and Nationwide deposits. After the transfer, deposits with both providers will be treated as held with a single provider, meaning a maximum of £120,000 of combined deposits will be protected.
If you want to protect more than £120,000, consider moving the excess to another regulated bank or building society. The cut-off affects anyone with more than £120,000 spread across both providers. Customers are given until June 1, 2026, to move money without paying charges or losing earned interest.
Virgin Money's Statement
Virgin Money said: "Please contact us if you want to move money from Virgin Money or Nationwide to protect it under the FSCS. If you have an instant access account, easy access savings account, or current account, you can withdraw your money at any time as normal. For other accounts where you would normally be charged a fee, we will ensure this fee is not charged and you don't lose out on any interest earned if you request withdrawal between February 24, 2026, and June 1, 2026. After that date, normal terms and charges apply. If you wish to move money in an ISA to another provider, this must be done via the ISA transfer process. You must not withdraw directly from your ISA(s) or close the account(s) to keep tax-free status."
After June 1, customers needing to move money to stay within FSCS limits would face an early withdrawal penalty equal to 60 days' lost interest on the amount taken out.
