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Paragon Bank launches inaugural green savings account as part of broader  fixed rate range upgrade

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Paragon Bank has increased rates across a number of its savings products, as well as launching an inaugural green savings fixed-rate bond aimed at helping improve the energy efficiency of UK homes.

Paragon’s Green three-year fixed-rate bond pays a competitive rate of 1.60%, higher than comparable green three-year fixed rate bonds available on the market.

The deposits from Paragon’s green product will be used to finance properties with an Energy Performance Certificate of C or above, predominantly in the UK private rented sector.

The UK Government has set a target for net zero greenhouse gas emissions by 2050 and housing will play a key role in achieving that. Housing accounts for 15% of the UK’s greenhouse gas emissions, rising to 22% if electricity consumption is included.

In addition to the launch of the green savings product, Paragon has also increased rates across seven of its products. Highlights include:

  • One-year fixed rate ISA increasing from 0.8% AER to 1.06% AER
  • Two-year fixed rate ISA increasing from 1.04% AER to 1.37% AER

Paragon’s ISA Wrapper and Flexible ISA features mean that our ISA range can help those customers looking to create a portfolio of cash ISAs to meet their individual circumstances.

The ISA Wallet allows savers to spread their £20,000 annual ISA allowance with Paragon across multiple cash ISAs, rather than just open one specific account. Savers can invest their money across Paragon's range of Easy Access, Notice and Fixed accounts, enabling them to get the most from their ISA savings in a single tax year.

Meanwhile, the Flexibility feature allows cash to be withdrawn and replaced from Easy Access ISAs without savers using their tax-free entitlement and comes as an additional feature to Paragon's current Easy Access ISA products.

The full range of Paragon’s fixed rate savings products can be found here.

Derek Sprawling, Savings Director at Paragon Bank, said:

“Much of the UK’s housing stock is energy inefficient and as a nation we need to take huge strides over the next two decades to reduce carbon emissions from our homes. We are becoming more aware of our impact on the environment from all aspects of our lives - from how and where we shop, to the car we drive, to the home we live in.

“Our new green savings product will give savers the opportunity to contribute towards improving the energy efficiency of UK homes, helping to create a more sustainable future. This is an important step for us to take and we will build on this inaugural offering in the coming months and years.”  

Paragon Bank operates a 28-day rate guarantee, which ensures that any customers part way through the application process will benefit from the new rates automatically.

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank

Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.