Savers given 'more choice' on 'competitive' options as bank further boosts interest rates

Paragon Bank has announced a boost to interest rates on its two and three year fixed rate bonds. The challenger bank has also increased the rate available on its one-year fixed Rate ISA.

The interest can either be paid on a yearly or monthly basis.

So, which products are changing, and how much are the rate increases?

The two-year account previously had an interest rate of 0.85 percent AER.

It will increase to one percent AER.

The three-year account previously paid 0.90 percent AER, and it is increasing to 1.05 percent AER.

Meanwhile, the one-year ISA had a rate of 0.50 percent AER, increasing to 0,55 percent AER.

Derek Sprawling, Savings Director at Paragon Bank, said: “Through its range of consistently competitive savings products in both the access and fixed rate space, Paragon has been providing savers with choice against a backdrop of falling rates.

“We offer a broad range of saving accounts that are straightforward to open and manage, and we continually look at ways we can innovate to offer more great saving solutions for our customers.

“People can choose to apply for those accounts 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.”

The increases come just a matter of weeks after Paragon Bank increased interest rates across all fixed rate bonds as well as several fixed rate ISAs.

The aforementioned two-year account and three-year account were among those to see a boost.

Prior to the increase to 0.85 percent AER, the former stood at 0.70 percent AER.

Meanwhile, the three-year account previously had an interest rate of 0.85 percent, rising to 0.90 percent – ahead of today’s increase, that is.

The one-year ISA previously earned 0.45 percent AER, increasing to 0.50 percent last month.

Mr Sprawling said at the time: “Paragon has been supporting UK savers with consistently competitive products against a backdrop of falling market rates, in both the access and fixed rate space.”

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