New best-buy Cash ISA launched by Paragon paying 1.31%
Paragon expands savings range with new notice Cash ISA.
10th January 2020 13:52
by Brean Horne from interactive investor
Paragon expands savings range with new notice Cash ISA.
Paragon has launched a new market-leading 120-day notice cash Isa paying 1.31% AER.
Customers can sign up to the account online with a minimum deposit of £500.
Notice accounts work by requiring the saver to give advance notice before withdrawing any money from their account.
How does the Paragon 120 day notice Isa compare?
Paragon offers the best rate of return for a notice cash Isa at 1.31% (AER).
The Earl Shilton 90 day notice cash Isa and Aldermore's 30 day notice cash Isa follow closely behind, offering 1.30% AER.
Most notice accounts require between 30 and 90 days before a saver can withdraw money, but some can ask for as much as 180 days.
While Paragon currently pays the highest rate of interest, its notice period is much higher than its competitors.
Should you lock your money away for better returns?
Usually the longer you are willing to lock your money away in a savings account, the greater rate of return you’ll get.
With interest rates being notoriously low, these types of account can seem tempting.
They do, however, come with withdrawal restrictions which could prevent you from accessing your cash in an emergency.
If the money you’re thinking about locking away is your emergency fund, it may be best to choose a savings account that offers more flexibility to access your cash in case your circumstances change.
Savers that already have a rainy day fund in place but want to save a little extra may find that locking their extra money away could get them better returns.
Our guides on the best cash Isa rates and best savings rates reveal the top savings accounts available on the market right now.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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