Bank boosts ISA deals as savers can earn 1.25% while ‘building up their tax free savings’

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Interest rates are low across a number of financial products at the moment as the Bank of England keeps the base rate at rock bottom levels. However, banks are regularly increasing their rates on savings accounts and today, ISA deals have been boosted.

Paragon Bank, in “targeting top-of-the-market positions for its range of fixed rate cash ISAs”, has increased rates across four of its products.

The new rates are vailable to savers from today, Friday, August 13.

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

Interest on the accounts can also be paid on a yearly or monthly basis.

The products impacted by the rate increase are as follows:

  • One Year FR ISA (previous interest rate of 0.70 percent AER, increasing to 0.75 percent AER)
  • Two Year FR ISA (previous interest rate of 0.90 percent AER, increasing to 1.01 percent AER)
  • Three Year FR ISA (previous interest rate of one percent AER, increasing to 1.11 percent AER)
  • Five Year FR ISA (previous interest rate of 1.15 percent AER, increasing to 1.25 percent AER)

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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 Bank also recently launched two new easy access products – the Limited Edition ISA and Limited Edition Easy Access Account, both at a rate of 0.46 percent AER.

Derek Sprawling, a Savings Director at Paragon Bank, commented: “Savers using their ISA allowance and building up their tax-free savings could see benefits in the future.

“We want to support cash ISA usage through our broad range of ISA products, designed to suit all needs and provide a competitive rate.

“Our ISA Wallet feature also gives savers the opportunity to split their ISA allowance across different ISA accounts.

“On top of this, we also offer a ‘flexibility’ feature on our easy access ISAs that allow customers to replace funds withdrawn from an ISA without their allowance being impacted.

“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.”

Paragon Bank also noted it was recently 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.

Full details on Paragon Bank’s entire range of financial products can be found on the company’s website.

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