The boosted rates are available to savers in the cash ISA space (Image: GETTY)
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The boosted rates are available to savers in the cash ISA space. The bank has increased the return offered across its one, three and five-year fixed rate ISAs. The new rates will be available to savers from today, Friday 30 July.
The products impacted by the rate increase are as follows:
• 1 Year FR ISA (previous interest rate of 0.61 percent AER, increasing to 0.70 percent AER)
• 3 Year FR ISA (previous interest rate of 0.95 percent AER, increasing to 1.00 percent AER)
• 5 Year FR ISA (previous interest rate of 1.05 percent AER, increasing to 1.15 percent AER)
The announcement is likely to be good news for those hoping to grow their money – both new and existing customers.
This latest increase comes after the award-winning bank boosted the interest rate on its two-year fixed rate ISA last week.
They also launched two new easy access products.
Savers can spread their annual ISA allowance with Paragon across multiple cash ISAs (Image: GETTY)
The Limited-Edition ISA and Limited-Edition Easy Access Account were both introduced at a rate of 0.46 percent AER*.
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.
The FTSE 250 financial provider’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.
Derek Sprawling, Savings Director at Paragon Bank, said: “There are many long-term benefits to building tax free savings.
“We aim to support customers in doing so by offering the most competitive rates we can across a range of fixed rate and easy access ISAs.
“Our ISA Wallet feature also gives savers the opportunity to split their ISA allowance across different products.
“On top of this, we also offer a ‘flexibility’ feature on our easy access ISAs that allow customers to replace funds withdrawn from an ISA without their allowance being impacted.
Rates are still low but savers have been given hope (Image: GETTY)
“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.”
As a result of the ongoing COVID-19 pandemic, savings have been suffering.
This was partly due to the Bank of England’s decision to lower its base rate to 0.1 percent in March 2020, which has not changed since.
While rates are still low, savers have been given hope as retail banks are regularly increasing what’s on offer.
Banks and building societies have also launched a number of cash incentives to bring in new customers.
Companies such as HSBC and Nationwide have offered switching bribes to those who are willing to move their funds across.
However, Rachel Springall, a Finance Expert at Moneyfacts.co.uk has warned customers that “it’s important that care is taken when comparing offers … it would be wise not to get blindsided by an upfront perk”.