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  • Easy Access cash ISA guide

    Our Easy Access cash ISA allows you to benefit from tax-free interest on your savings now and in the future as well as the option to add to or withdraw from your savings as and when it suits you

What’s an ISA?

An ISA is an ‘Individual Savings Account’ which allows UK taxpayers to benefit from tax-free interest on their savings now and in the future- so any interest you earn is all yours.

Each tax year the government sets a maximum amount you can invest into an ISA. This can be split between a cash and a stocks and shares ISA. You can find details of this years’ ISA allowance here.

Who can pay into an ISA?

To have a cash ISA you must be a UK resident. For those who would like to invest into a stocks and shares ISA you must be 18 or over. You can only pay into one cash and one stocks and shares ISA each tax year as long as you do not exceed your ISA allowance.

Can I transfer money between ISAs?

Yes. From the 1 July 2014 ISAs became more flexible so not only can you transfer from a cash ISA into a stocks and shares ISA, but you can now also transfer money from your existing stocks and shares ISA into a cash ISA.

This recent change is important for those savers who have in the past used stocks and shares ISAs in an effort to receive improved returns, but no longer want to risk their capital investment and so would like to switch to a cash ISA.

When transferring an ISA you should always make sure you do it through an ISA transfer request with your bank or building society. Don’t try to do it yourself because your savings could lose its tax-free status, which applies now and in the future.

Paragon Bank’s Easy Access cash ISAs

Our Easy Access cash ISA allows you to pay in and take out money whenever you need to. But remember, once you make a withdrawal, you cannot replace the money you’ve taken out in the same tax year. So if you’re looking to take advantage of the full ISA allowance you will lose that proportion of your allowance.

For example, if you open an ISA on 6 April 2016 with £10,000 you still have £5,240 left to pay in for the current 2016/17 tax year. Then three months later (still in the same tax year) you take out £1,000, you can still only pay in £5,240.

Unlike some other providers our accounts don’t include an introductory bonus rate or restrictions on the number of withdrawals you can make.

The tax-free interest rate is variable and can change over time but we’ll always tell you about any changes we make.

Key features

  • All the interest you earn is tax-free now and in the future, providing you have it paid to the account.
  • Access your money quickly and conveniently, whenever you need it. You can make unlimited withdrawals without penalty, although this could affect your ISA allowance
  • Top-up your tax-free savings. You can save a lump sum, set up a Standing Order or just pay in whenever it suits you
  • Easily transfer existing ISAs from other providers to Paragon Bank. We’ll do this electronically if we’re able to or you can complete an ISA transfer form then return it to us
  • You can choose to receive your interest monthly or annually
  • Remember, any interest you have paid to your nominated account will lose its tax-free status

How do our Easy Access cash ISAs work?

  • All our accounts are available online only. When you apply, we’ll ask you to set up a nominated account. This is the account you’ll need to use to make your deposits and withdrawals
  • Always remember that any withdrawals you make from previous tax years’ allowance cannot be replaced. So if you decide to take money out of your account you will lose that entitlement
  • Our Easy Access cash ISA is not a Flexible ISA which means if you take money out of your account you will lose that entitlement and cannot replace it
  • You can add to your Easy Access cash ISA at any time, as long as you do not exceed the ISA subscription limit. You can also transfer any existing ISAs you may have, to us, at any time.
  • Easy access accounts are simple to use. You don’t need give us notice to take money out of your account and there’s no loss of interest of penalty if you do
  • If we reduce the rate on your Easy Access cash ISA, we’ll give you advance notice of the reduction. If we put the rate up, we may tell you about it retrospectively.
  • Your account is managed online. This means you can check your balance, print statements and carry out transactions whenever you like – even in the middle of the night

Fixed cash isas

If you’re looking to guarantee a tax-free return on your savings now and in the future a Fixed Rate cash ISA could be the right account for you. In return for locking away your money, you can be certain of how much interest your savings will earn tax-free.

Read more

Sheila's story

“Paragon Bank caught my attention with their competitive interest rates and then won my business with their simple online application process and clear communications.”

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Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551