Paragon Bank has increased the rates of its 120-day notice account and one-year fixed bond by up to 0.36%, catapulting both to the top of their respective sectors.
120 Day Notice (Issue 4) now pays a market-leading rate of 1.96% yearly (1.94% monthly) while One Year Fixed Rate pays 2.07% yearly (2.05% monthly), which also sees it rise to the top of the Moneyfacts charts for its term.
These accounts must be opened and operated online. Savers should note that access is via a nominated account.
The notice deal requires an initial investment of at least £500. Extra deposits can be made at any time and unlimited, penalty-free withdrawals are possible. However, early access is not permitted, so savers must always give 120 days' notice before withdrawing funds.
The fixed bond needs a minimum deposit of £1,000, although further additions can be made for up to five days after the account has been opened. As with many fixed rate deals, early access is not permitted, so savers need to ensure that they are happy to lock their money away for the one-year term.
Both of these accounts are market-leaders, which is sure to make them stand out in the savings market. The option of monthly interest is also an appealing feature that will entice savers on the hunt for a regular income. However, as neither account offers early access, savers must ensure that they are happy to abide by their chosen account's withdrawal restrictions.
Moneyfacts rating: Excellent
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