One of the UK's largest provider of savings accounts is raising interest rates in a boon for new and existing customers.
Paragon Bank has confirmed it is increasing savings rates across its range of fixed -rate cash ISA range.
Here is a full list of thesavings interest rate increases being implemented by Paragon Bank:
- One-year fixed rate cash ISA increasing from 4.71 per cent to 4.76 per cent AER
- Two-year fixed rate cash ISA increasing from 4.55 per cent to 4.59 per cent AER
- Three-year fixed rate cash ISA increasing from 4.30 per cent to 4.35 per cent AER
- Five-year fixed rate cash ISA increasing from four per cent to 4.05 per cent AER.
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As well as this, the bank has raised two rates on its non-ISA three and five-year fixed-rate savings accounts.
These new interest rates are jumping from 4.20 per cent and 3.90 per cent to 4.35 per cent and 4.05 per cent, respectively.
These boosted interest rates are available from today, May 28.
Savings accounts can be opened and managed online, over the phone or by post.
The fixed-rate ISA range needs a minimum balance of £500, up to a maximum of £500,000 plus any resulting interest.
Each of Paragon Bank's accounts are eligible for the ISA Wallet feature which permits savers to spread their £20,000 annual ISA allowance across multiple cash ISAs, rather than just opening one specific account.
Ahead of the new tax year each April 6, savers attempt to maximise their £20,000 ISA allowance as early as possible.
Research conducted by Paragon found that 45 per cent of ISA savers prefer to use their ISA allowance early to maximise their returns.
Derek Sprawling, Paragon Bank's savings director, outlined why savers should consider ISAs to maximise their money.
He said: said: "The popularity of ISAs soared in 2023, with much of that money directed towards fixed-rate variants.
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"As those rates mature, we want to offer savers competitive options for their ISA cash.
"Nearly half of ISA savers also like to invest early in the new tax year and we have certainly seen that this tax year, with Paragon experiencing its busiest ever day for applications on April 8.
"We expect these rates to continue to be popular with new and existing customers looking to make the most of their tax-free shelter."
Savings deposits by Paragon Bank jumped by 24.3 per cent in its last financial year to £13.3billion.
