You are here: Home - Saving-Banking - News -

One-year fixed savings account pays 1.85%

Written by: Paloma Kubiak
Paragon Bank has upped its offering on four of its fixed savings accounts, pushing it comfortably into the best buy tables.

Paragon Bank has increased the rates on a number of fixed savings accounts. Here are the changes:

  • One Year Fixed Rate: 1.85% AER (up from 1.60%)
  • Two Year Fixed Rate: 2.05% AER (up from 1.86%)
  • Three Year Fixed Rate: 2.10% AER (up from 1.95%)
  • Five Year Fixed Rate: 2.45% AER (up from 2.25%).

With all four accounts, savers can opt to receive interest monthly or annually. Currently over a quarter (27%) of Paragon Bank’s Fixed Rate savings customers receive their interest monthly, with the figure rising to almost one third (30%) of savers on accounts with terms of three years and longer.

Richard Doe, managing director at Paragon Bank said: “By refreshing the entire fixed rate savings range, and ensuring our products maintain the flexibility that our customers so value, we aim to appeal to a wide variety of savers regardless of whether they’re looking to save over the short or the long-term.”

Paragon Bank’s savings products are available online only (minimum £1,000 investment) and eligible deposits are protected by the Financial Services Compensation Scheme up to a maximum of £85,000.

How good is Paragon’s offering?

Its one-year fixed offering sits below the Sharia savings accounts offered by Al Rayan Bank and BLME paying an expected profit rate (rather than guaranteed interest) of 2.02% and 2% respectively.

These two Islamic principle banks also pip Paragon in the two-year category with an expected profit rate of 2.11% and 2.10% respectively.

Data from Moneyfacts reveals both Atom Bank’s and the NS&I three-year bond pay 2.20%, ahead of Paragon’s 2.10% offering.

And once again, in the five-year category, BLME takes first place with 2.50% expected profit, against Paragon’s 2.45% deal.

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week