Customers of a major UK high street bank are set to see a monthly charge added to their current accounts in the coming weeks. Virgin Money has confirmed it will increase the fee for its Club M packaged account.
What is changing with the Club M account?
From 1 February 2026, the monthly fee for the Virgin Money Club M account will rise by £1.50, moving from £12.50 to £14. This marks the first price adjustment for the account since February 2021.
The increase means customers will pay £168 annually to maintain the account, which is £18 more per year than the current rate of £150.
Why is Virgin Money increasing the fee?
A spokesperson for the bank explained the rationale behind the hike. “This is the first increase since February 2021, and the new price reflects costs set by the third-party insurers for the benefits provided,” they stated.
The bank emphasised that Virgin Money does not earn any commission on the monthly fee and maintains that the Club M account still represents one of the best-value packaged products available on the market.
What benefits does the packaged account include?
A packaged bank account is a current account that carries a monthly fee in exchange for a bundle of insurance benefits. The flagship Club M account offers three core covers:
- Worldwide family multi-trip travel insurance (Provided by AIG until 31 Jan 2026, then by Zurich via Travel Guard from 1 Feb 2026).
- Worldwide family mobile and gadget insurance (Provided by Assurant General Insurance Limited).
- UK and Europe breakdown cover (Provided by Green Flag, underwritten by U K Insurance Limited).
For customers considering opening the account, Virgin Money outlines a digital application process. Applicants need to provide personal information and verify their identity digitally, which involves taking a 'liveness' selfie and a photo of an accepted ID document, such as a UK driving licence, valid UK passport, or a proof of address document.
