Paragon Bank has increased rates on its one and two-year fixed-rate ISAs, available from today.

The increases include:

• One year fixed-rate ISA increasing from 4.00% to 4.20% AER*
• Two year fixed-rate ISA increase from 4.00% to 4.25% AER*

The new rates are available from today and the increase follows the launch of Paragon’s Triple Access ISA this week, paying 3.35% AER.  

Fixed-rate ISAs have proven popular with savers this ISA season. Paragon Bank analysis of CACI’s weekly data, which compiles adult savings account data from 26 providers, showed the net flow of money into fixed-rate ISA accounts (deposits plus interest credited, minus withdrawals) was £19.8 billion in the period between 2 January and 9 April.

Savers can make unlimited deposits without penalty or restrictions and the account is available for balances between £1 and £500,000. Savers can save up to £20,000 per tax year within a cash ISA, but can also transfer in balances from ISAs from previous tax years.

Additionally, ISA savers with Paragon can benefit from the ISA Wallet, which allows savers to open more than one cash ISA with Paragon during the same tax year.

Derek Sprawling, Savings Director at Paragon Bank, said:

“We pride ourselves on our award-winning ISA offering, so we are pleased to increase our one and two-year fixed rates, as well as relaunching our Triple Access ISA. Whilst we’ve been here all along, this bolstered product range comes at a time when ISA savings are enjoying a resurgence as people look to protect their interest against tax.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746
www.paragonbank.co.uk 

Notes to editors:

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.

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 £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised 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.