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

Paragon Bank ups rates on fixed rate cash ISAs

Written by: Emma Lunn
The challenger bank is targeting the best buy tables with its range of fixed rate cash ISAs after it increased rates across four of its products.

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 On top of this, we also offer a ‘flexibility’ feature on our easy access ISAs that allow customers to replace funds withdrawn from an ISA without their allowance being impacted.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.”

There are 0 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.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week