Paragon

Paragon savings accounts

Paragon has a variety of savings accounts with interest rates up to 4.4%

Paragon is an online-only bank. It offers UK customers a range of services, including savings accounts, mortgages and loans.

Founded in 1985, Paragon is one of the UK’s leading specialist lenders, with over 1.5 million customers. Since gaining its banking licence in 2014, Paragon has expanded into providing a wide range of specialist financing products for landlords and businesses, as well as its consumer banking products. It currently has over 214,000 savings customers.

Could one of its savings options be the right fit for you? Here’s a review of the options.

Fixed-rate bonds

Table: sorted by interest rate, promoted deals first
Name Product Interest rate Invest Interest paid Withdrawals Deposit protection Incentive Apply link
OFFER
Paragon Bank – Raisin UK - 2 Year Fixed Term Deposit
4.4% AER fixed for 2 years
£1,000 - £85,000
On maturity (compounded annually)
Withdrawals not permitted
FSCS logo
protected
£30 Partner Bonus can be claimed on savings accounts with a term of at least six months opened with a minimum of £10,000 (bonus added to the investment).
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Paragon Bank – 5 Year Fixed Rate Savings Account
4.4% AER fixed for 5 years
£1,000 - £500,000
Anniversary of account opening
Withdrawals not permitted
FSCS logo
protected

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Paragon ISA rates

Table: sorted by interest rate, promoted deals first
Name Product Interest rate Minimum investment Interest paid Withdrawals Deposit protection Incentive Apply link
Paragon Bank – 5 Year Fixed Rate Cash ISA
4.05% AER fixed for 5 years
£500
Monthly
Instant access (penalty applies )
FSCS logo
protected

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Paragon Bank – 5 Year Fixed Rate Cash ISA
4.05% AER fixed for 5 years
£500
Anniversary of account opening
Instant access (penalty applies )
FSCS logo
protected

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Instant and easy access savings accounts

Table: sorted by interest rate, promoted deals first
Name Product Account type Withdrawals Min. opening balance Interest rate Incentive Apply link
OFFER
Paragon Bank – Raisin UK - Rainy Day Easy Access Account
Variable
1 days notice needed
£20,000
2.6% AER variable
£30 Partner Bonus can be claimed on savings accounts that have been held for at least six months opened with a minimum of £10,000 (bonus added to the investment).
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Paragon Bank – Cash Lifetime ISA (Issue 3)
Lifetime ISA
1 days notice needed
£1
1.6% AER variable
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Who is Paragon bank?

Before we get into the nitty gritty of Paragon’s saving options, you might want to know a little bit more about the bank.

Based in Solihull, Paragon is relatively young as banks go. While the Paragon group was formed in 1985, it only launched as a full bank in 2014. Like many new kids on the banking block, Paragon is online-only. So you have to apply for an account through its website.

If you’re interested in the numbers, Paragon’s savings deposits reached £3.6 billion in 2017. Paragon is a FTSE 250 company with over £12 billion in assets.

What savings accounts does Paragon offer?

  • Easy access
  • Cash ISAs
  • Fixed rate
  • Notice

What is a cash ISA?

A cash ISA (individual savings account) is a savings account where you don’t pay tax on the interest you earn, and there’s an annual limit to the amount you can put into an ISA which is set by the government.

Paragon savings accounts explained

Easy access

  • Choose when you want to add funds
  • Withdraw your money at any time
  • Variable interest rates that could change over time. Paragon will notify you about any changes

Easy access cash ISA

  • An ISA gives you get tax-free interest on your savings
  • An easy-access cash ISA lets you put money in and withdraw it, in both cases this must involve a nominated bank account
  • Variable interest rate

Fixed-rate cash ISA

  • An ISA lets you get tax-free interest on your savings
  • The fixed interest rate means you’ll have more certainty about your return

Fixed-rate savings accounts

  • You know exactly how much interest you’ll earn
  • Higher interest rate the longer you agree to deposit your money for
  • Put your money away for 1-5 years.
  • You can only withdraw your money when the agreed term ends. So this option isn’t for anyone on a tight, fluctuating budget
  • Choose monthly or annual interest.

Notice savings accounts

  • You have to give notice if you want to withdraw money
  • Higher interest rates than an easy-access accounts
  • Variable interest rates – they can change over time. Paragon will inform you about this
  • Tax-free within your personal savings allowance: £1,000 a year for lower-earners; £500 for higher earners
  • Choose monthly or annual interest

Does Paragon offer online or mobile banking?

Paragon offers online banking through its website, but does not have a dedicated mobile app.

Here are some of the basic features of Paragon’s online banking service:

  • Check balances for any type of account.
  • Transfer money between accounts
  • Pay bills and people

The pros and cons of banking with Paragon

Pros

  • Online Banking. Your Paragon savings account can be accessed online through the website.
  • Flexibility. Paragon offers a variety of accounts to suit your financial needs.

Cons

  • No high street presence. If you like the assurance of face-to-face customer service, Paragon may not be the way to go.

How safe is Paragon bank?

Paragon is covered by the Financial Services Compensation Scheme (FSCS), so your deposits are covered for up to £85,000 with Paragon. Paragon is authorised by the Prudential Regulation authority and regulated by the PRA as well as the Financial Conduct Authority.

The bottom line

Although it’s a relatively new bank, Paragon has received plaudits for its competitive savings products in recent years. If you’re happy to manage your savings accounts online and are looking for cash ISAs that offer decent returns, Paragon may be worth a look. The bank has a range of savings accounts that are only available to existing customers, so if you do decide to open an account, you may find other products that are suitable for your saving needs.

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