Paragon Bank has increased rates offered across its entire range of one, two, three and five-year fixed rate cash ISAs to offer more choice to savers looking for competitive tax-free options.

The new products and rates will be available from today – Friday 15 October.

Paragon has announced the following rate increases:

• 1 Year FR ISA (previous interest rate of 0.70% AER*, increasing to 0.86% AER*)

• 2 Year FR ISA (previous interest rate of 0.91% AER*, increasing to 1.06% AER*)

• 3 Year FR ISA (previous interest rate of 1.11% AER*, increasing to 1.16% AER*)

• 5 Year FR ISA (previous interest rate of 1.25% AER*, increasing to 1.30% AER*)

Paragon’s range of fixed rate savings products can be opened and managed online, over the phone or by post and are available to both new and existing customers.

All of Paragon’s ISAs are eligible for the 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.

Paragon’s easy access ISAs are also eligible for the ‘Flexibility’ feature, which allows any funds withdrawn from an easy access ISA to be added back into the ISA within the same tax year without the year’s allowance being impacted.

Derek Sprawling, Savings Director at Paragon Bank, said:

“We want to provide choice to people who are looking to build up their tax-free savings by offering a range of competitive ISAs, both in the fixed rate and the easy access space. Our cash ISAs complement our broad range of non-ISA products, which are suited to all saving requirements, from fixed rates, notice accounts and easy access.

“Our saving accounts are available to both new and existing customers and people who hold an existing easy access account with us can easily switch over.

“Paragon’s ISAs are designed with flexibility and convenience in mind. Our ISA Wallet feature gives savers the opportunity to split their ISA allowance across different ISA accounts. Across our easy access products, the ‘flexibility’ feature allows customers to replace funds withdrawn from an ISA without their allowance being impacted. On top of this, customers have the option to manage their fixed rate through the post.

“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.”

Earlier this year, Paragon was named ‘Best Internet Account Provider’ at the Moneyfacts Awards, in recognition of its consistently competitive pricing. It also received ‘Highly Commended’ for ‘Best Cash ISA Provider’ category and ‘Commended’ in the ‘Best Bank Savings Provider’ category.

For more information about this release, contact:

Leila Taleb - media relations manager 

[email protected]