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New best buy easy access saver with 3.10% interest rate

Your Money
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Your Money

Paragon’s new rate makes it the top easy access savings account, paying more than the 3.05% AER offered by Sainsbury’s Bank, Newcastle Building Society and OakNorth Bank.

The lender, based in Solihull, raised the interest it will pay on its Triple Access Account to 3.10% on Friday, lifting it to the top of the easy-access accounts, according to Moneyfacts data.

The account must be opened and managed online. The minimum investment to open an account is £1. The maximum investment is £500,000. Customers can choose whether the interest on the online account is paid monthly, or on the anniversary of the account which would allow for compounding. However, the interest rate falls to 0.75% from the fourth withdrawal within 12 months.

The other top easy-access cash ISAs

Other top easy-access cash ISAs picked by Moneyfacts include Newcastle BS and Sainsbury’s Bank, both of which lower their 3.05% rates if a customer makes more than three withdrawals: Newcastle’s falls to 1.75% and Sainsbury’s drops to 0.80%.)

Newcastle’s accounts can also start with just £1 and interest is paid on the anniversary. You can open one online or in a branch and manage your money online, by phone, through the post or in a branch.

Sainsbury’s Bank only pays its top rate on account balances between £1,000 and £500,000. For less than £1,000, the rate drops to 1.05% and accounts with more than £500,000 earn 0.90%. All interest is paid on the anniversary and accounts can be managed online or by phone.

There is an account without withdrawal penalties. It’s Shawbrook Bank’s Easy Access – Issue 33 which pays 3.01%, although access to your savings has to be made via a nominated account. You can apply online and manage your account either online or by phone.

The week’s best fixed-rate bonds

Bonds are getting renewed attention in this economy.

Moneyfacts lists the online-only SmartSave on top with a one-year fixed offer that requires at least £10,000 to open and pays interest on maturity. You are allowed to add more money within the first two weeks of opening the account.

Then the attention shifts to Union Bank of India (UK) Ltd which is offering two, three and five-year bonds at market-best rates. Its Fixed Rate Deposit can only be opened by post or at one of the bank’s London branches and with a minimum of £1,000. It pays interest yearly, or on maturity. The bank’s internet-only Union Premier Bond requires at least £5,000 to open and pays interest when it matures.

The Fixed Rate Deposit can only be opened and managed in one of its branches, which are in London, or via the post with a minimum opening deposit of £1,000. Meanwhile, the Union Premier Bond is internet-operated and a minimum of £5,000 is required upon opening.

The week’s best notice accounts

According to Moneyfacts, Saffron Building Society offers the best rate for accounts requiring a notice period of 30 days or less. Opened online, in a branch or by post, deposits start at £5,000 and interest of 3% is paid yearly. But if you skip the notice period, the penalty is a 30-day loss of interest.

Another option is the 90-Day Notice Account (Issue 5) online from the Bank of London and the Middle East, which requires a minimum deposit of £10,000 and offers 3.24%. You must maintain a minimum account balance of £1,000 and as long as you give the required notice period you can make unlimited withdrawals, though they must be at least £1,000 each time.