Paragon Bank is launching a new 120 Day Notice Savings Account (available from Friday 15 August) at a top of market rate of 1.90% AER* for savers with balances from £500 to £100,000.
Building on Paragon Bank’s initial range of easy access and fixed rate savings accounts, the new Notice Savings Account represents an attractive choice for savers looking to maintain flexibility to respond to changes in the wider interest rate environment.
Notice accounts are not currently on offer from the UK’s largest banks. Traditionally a mainstay of the UK building societies, notice accounts offer savers something of a half-way house between easy access and fixed term. This is because the interest rate, although variable, is typically pitched at a higher level than easy access products. In addition, savers also maintain the option to withdraw their funds without losing interest provided the appropriate notice is given.
Richard Doe, Paragon Bank’s Managing Director, said:
As a new British competitor in the UK banking market, Paragon Bank is committed to expanding competition and choice for UK savers with a range of safe, simple and transparent products at consistently good value rates.
Given the current market expectation for a gradual increase in the Bank of England base rate, many savers are understandably keen to make sure they can reassess their options if rates rise. Against this background, we expect the competitively-priced Paragon Bank Notice Account available on balances from £500 to be a top pick, giving savers flexibility to take advantage of future developments if required.
By matching the 1.90% rate on Paragon’s One Year Fixed Rate Savings Account, customers can now choose between two market-leading products depending on how actively they want to manage their money.
Paragon Bank is registered under the Financial Services Compensation Scheme (FSCS) which protects eligible deposits up to a total of £85,000.
*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.