Interactive Investor

Savings update: Paragon Bank launches 1.45% easy access deal with NO catches

24th January 2019 12:05

Stephen Little from interactive investor

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Paragon Bank has launched an online easy-access account with a rate of 1.45%.

Unlike other top-paying accounts, it does not restrict you to making a certain number of withdrawals a year. Neither is the rate boosted by a short-term bonus.

Both Cynergy Bank’s Online Saver and Goldman Sachs’ Marcus Online Saver pay a slightly higher rate of 1.5%, but this includes a bonus paid only for the first 12 months.

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Virgin Money’s Double Take E-Saver also pays 1.5% and while there is no short-term bonus, you are limited to two withdrawals a year.

On fixed-rate bonds, the top one-year rate is 2.03% from Charter Savings Bank, followed by Paragon Bank at 2.01%.

A cluster of providers, including Atom, Ford Money, OakNorth, Tandem and Investec, all pay 2%. The top rate for two years is 2.35% from Investec.

On easy-access tax-free cash Isas, Paragon’s new Limited Edition account pays a top 1.45%. Virgin Money pays the same rate on its Double Take E-Isa, but it limits you to two withdrawals a year.

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On fixed-rate cash Isas, Aldermore Bank pays 1.7% for one year and Coventry Building Society is offering 1.7% until May next year. Cynergy Bank follows at 1.68% and Charter Savings Bank at 1.67%.

The best two-year rate on offer is 1.87% from Charter Savings. Coventry Building Society pays a slightly higher 1.9% for those willing to tie up their money until May 2021.

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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