Saving will be important to many people with different goals – whether it’s a simple financial buffer or progressing toward a specific monetary goal. Whatever the reason for saving, besides the benefits of security, savers are also looking for a decent return through interest. As the Bank of England succinctly explains, interest rates are the money paid to a saver “because the banks pay to lease your money”.
Although the rates have been somewhat abysmal over the past 18 months, the situation is starting to improve, and this has been shown by one supplier increasing its offerings.
Paragon Bank has announced that it has increased the rates offered on its entire range of fixed rate ISAs.
This is great news for those looking for tax-free savings options with a guaranteed return.
The products have been available since yesterday and the line includes one, two, three and five year accounts.
READ MORE: Good news for savers as TSB doubles interest rate on savings account
It allows savers to spread their annual ISA allocation of £ 20,000 with Paragon across multiple cash ISAs, rather than just opening a specific account.
Any interest that a person earns from an ISA will not count towards their personal savings allowance – this makes them especially beneficial for higher rate taxpayers and those with a lot of savings.
Derek Sprawling, Director of Savings at Paragon Bank, commented on the latest update on ISAs for savers.
He said, “We want to provide choice for people looking to accumulate their savings tax-free by offering a range of competitive ISAs, both in the fixed rate and in the easy-access space.
“Our cash ISAs complement our wide range of non-ISA products, which are suitable for all savings requirements, from fixed rates to notice accounts and easy access.
“Our savings accounts are available to new and existing customers, and people with an existing easy-to-access account with us can easily switch.
“Paragon’s ISAs are designed for flexibility and convenience. Our ISA Wallet function gives savers the possibility of distributing their ISA allocation to different ISA accounts.
“Across all of our easy-access products, the ‘flexibility’ feature allows clients to replace funds withdrawn from an ISA without their allocation being affected.
“In addition, customers have the option of managing their package by mail. “
Mr Sprawling explained that it is easy for those looking for a competitive deal to open and manage an account with the provider.
People can choose how they wish to apply, and it can be done online, by phone, or by mail.
He added, “Our 28-day rate guarantee ensures that all clients in the process of applying or with an impending deadline with us, will also automatically benefit from our new rates. “
