Paragon has increased the rates on its one, two, three and five-year fixed rate cash ISAs with the new rates available to savers from Friday 13 August.

The rate on Paragon’s one-year fixed rate cash ISA has gone up from 0.70% AER to 0.75% AER; the rate on the two-year ISA has increased from 0.90% to 1.01%, the three-year rate from 1.00% to 1.11%, and the five-year rate from 1.15% to 1.25%.

The rate increases mean Paragon is offering best buy rates for one, two and three-year fixed rate cash ISAs. However, it is beaten in the five-year market by United Trust Bank which offers 1.35%, compared to Paragon’s 1.25%.

Paragon Bank’s range of fixed term products can be opened and managed online, over the phone or by post and are available to both new and existing customers. Interest can be paid on a yearly or monthly basis.

All of Paragon’s ISAs are eligible for the bank’s ‘ISA Wallet’ feature. This allows savers to spread their £20,000 annual ISA allowance with Paragon across multiple cash ISAs, rather than just open one specific account.

Derek Sprawling, savings director at Paragon Bank, said: “Savers using their ISA allowance and building up their tax-free savings could see benefits in the future. We want to support cash ISA usage through our broad range of ISA products, designed to suit all needs and provide a competitive rate.

“Our ISA Wallet feature also gives savers the opportunity to split their ISA allowance across different ISA accounts. On top of this, we also offer a ‘flexibility’ feature on our easy access ISAs that allow customers to replace funds withdrawn from an ISA without their allowance being impacted.

“It’s easy for people looking for a competitive deal to open and manage an account with Paragon and they can choose to apply online, by telephone or by post. Our 28-day rate guarantee ensures that any customers part way through the application process already, or with an imminent maturity with us, will also benefit from our new rates automatically.”