Paragon Bank has increased interest rates across its range of fixed rate saving accounts, including its ISAs and fixed rate bond products.

In a positive move for savers, the financial provider will be increasing interest rates from Friday 21st August. Paragon’s range of fixed term products can be opened online, over the phone or by post and are available to new and existing customers.

The Fixed Rate Bonds impacted by the rate increase are as follows:

• 1 Year account (previous interest rate of 0.75% AER*, increasing to 1.20% AER*)
• 2 Year account (previous interest rate of 0.90% AER*, increasing to 1.30% AER*)
• 3 Year account (previous interest rate of 0.95% AER*, increasing to 1.35% AER*)
• 5 Year account (previous interest rate of 1.10% AER*, increasing to 1.40% AER*) 

The Fixed Rate ISA products include:

• 1 Year ISA (previous interest rate of 0.60% AER*, increasing to 0.85% AER*)
• 2 Year ISA (previous interest rate of 0.70% AER*, increasing to 0.90% AER*)
• 3 Year ISA (previous interest rate of 0.75% AER*, increasing to 0.95% AER*)
• 5 Year ISA (previous interest rate of 0.90% AER*, increasing to 1.10% AER*)

Paragon Bank’s ISA Wallet feature, which allows savers to spread their £20,000 annual ISA allowance across multiple Cash ISAs with Paragon, is available across its range of fixed rate ISAs.

Derek Sprawling, Savings Director at Paragon Bank, said:

“We are committed to offering competitive rates to savers and we are pleased to be in a position to increase interest rates across our fixed rate products. These new interest rates far exceed the industry average and will offer more choice to people who are looking to guarantee their return for a period of time.

“Having the ability to apply online, by telephone or by post means these rates are accessible to all. Our 28-day rate guarantee means 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.”