Good news for savers as bank announces ‘competitive’ interest rate
Finance: Expert on impact of inflation on savings accounts
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Finding the best possible return is a priority for many people who are looking to make the most of their money in such a tough time. The new option comes from Paragon Bank which is offering a new Triple Access Account paying a “competitive” rate of 0.65 percent AER variable.
From today, both new and existing customers will be able to access this account which aims to increase competitive options available for savers.
The account is offering a variable rate and is available to open and manage online.
With Triple Access, savers will be able to make up to three withdrawals a year without it impacting the interest rate.
After the third withdrawal, the interest a person will receive will reduce to 0.25 percent.
This means that the account is a good choice for people who are looking to save for the medium to long-term, the bank suggests.
It gives people flexibility in terms of accessing funds if they need to, or if they are looking to earn interest on their emergency fund.
The rate offered on the account matches that of the Triple Access ISA, which Paragon launched last week.
Derek Sprawling, savings director at Paragon Bank commented on the new account.
He said: “A recent piece of research we carried out highlighted those two thirds of savers have an emergency fund and that half of those who do see topping it up regularly as a priority.
“It’s important for savers to make sure they pick the right product for their emergency fund – one that allows access while also generating a competitive return.
“We have launched a competitive access product because we wanted to increase the number of options available in this space for savers that are looking to put money aside for the medium to long-term while also having the option to top up their balance regularly.”
The Triple Access ISA account is at the “top of market”, with a rate of 0.65 percent variable for those interested in a tax-free savings account, the bank stated.
Those with a Paragon ISA are eligible for what is known as the ISA Wallet.
The ISA Wallet is a key benefit of the account as savers can spread their £20,000 annual allowance across multiple cash ISAs with Paragon, rather than just opening one specific account.
Another benefit is the flexibility feature.
This allows any funds withdrawn from an access ISA to be added back into the ISA within the same tax year – all without the year’s allowance being impacted.
Paragon Bank says they operate a 28-day rate guarantee.
This ensures that any customers part way through the application process will benefit from the new rates automatically.
Paragon Bank is also a provider which is signed up to the Financial Services Compensation Scheme (FSCS).
This means all eligible deposits a person saves up to the value of £85,000 are protected – providing savers with peace of mind.
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