Savers wanting to spread their tax-free ISA allowance across more than one ISA will be able to benefit from Paragon Bank’s new ISA Wallet, which allows multiple ISAs to be opened within the tax year.
Traditionally, consumers can only open one ISA each tax year, which often means that savers have to choose between locking their money into a higher paying fixed rate ISA or a more flexible easy access ISA. With Paragon Bank’s new ISA Wallet, savers can open several ISAs within the tax year, meaning they can split their £20,000 tax-free allowance between easy access, notice and fixed rate ISAs.
Commenting on the launch of the ISA Wallet, Derek Sprawling, savings director at Paragon, said: “These features are a welcome addition to our cash ISA offering, giving savers even more choice to achieve their savings goals.
“Our Wallet feature allows savers to spread their cash between several Paragon products to suit their needs. For example, a saver may be happy to lock some of their ISA allowance away in a two year fixed rate, put some in a notice account and keep some cash readily at hand through an easy access account. Savers can combine fixed and variable rate ISA products, accessing different rates and different types of product benefits.”
Paragon Bank also enables customers to withdraw and replace money within its easy access ISA without affecting their ISA allowance. Sprawling added: “Combined with the Flexibility feature, which enables a saver to withdraw and replace money from their easy access ISA without it impacting their £20,000 ISA allowance, these features allow savers to make the most of their annual ISA allowance.”
