Paragon Bank is targeting the top spot with two new savings accounts - a 120 Day Notice Account at 1.96% AER* available to savers with deposits between £500 and £100,000 and a One Year Fixed Rate Savings Account paying 2.07% AER* on deposits between £1,000 and £100,000. Both accounts are available from Friday 17 July.
The Notice Account, a variable rate account, rewards savers with an interest rate above that available on Paragon Bank’s Easy Access products in return for providing 120 days’ notice ahead of a withdrawal. Subject to this one requirement, savers can add to their funds at any time and make an unlimited number of withdrawals without penalty.
In contrast, the One Year Fixed Rate Account will appeal to savers looking for certainty of income, providing an attractive interest rate to those who are able to lock in their funds for a full twelve month period.
Savers can choose to receive interest either monthly or annually on both accounts.
Richard Doe, Managing Director of Paragon Bank said:
Safe, simple and easy to open and manage online, the Paragon Bank range of savings accounts goes from strength to strength. The new rates on our Notice and One Year Fixed Rate Accounts give savers yet more choice, increasing the rewards savers can expect regardless of whether it’s flexibility or certainty that they’re looking for.
All eligible deposits with Paragon Bank are protected under the Financial Services Compensation Scheme (FSCS).
*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.