New bank launches ‘best buy’ savings account

Posted by admin on August 17th, 2014 in Savings

Funds MOT: Paragon Financial institution, which launched earlier this 12 months, is giving a new account having to pay an remarkable charge of one.9pc

  Photograph: GETTY

Paragon Bank, which launched in February this year, is competing for top location in the financial savings market place with a new 120 day observe account, paying one.9pc.

The account heads to the prime of the tables for recognize accounts, matching the existing “greatest get” charge supplied by Shawbrook Financial institution.

Savers can place among £500 to £100,000 into Paragon’s account, which can be opened on the internet.

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Verdict

Paragon Financial institution is looking to make itself identified with this eye-catching new launch, says Susan Hannums, a director at SavingsChampion.co.uk. The account is specially appealing since savers only have to deposit a minimal of £500, compared to Shawbrook’s requirement of £1,000.

In an usually neglected group, it is surely good information to see a new recognize account launch. These accounts operate by requiring the client to give recognize just before withdrawing any income, typically amongst 90 and 180 days.

Placing £10,000 into Paragon’s 120 day discover account would accrue interest of £152 a yr, soon after basic charge tax is deducted. Increased-price taxpayers would earn £114.

The financial institution also has a a single yr fixed price bond paying the very same price of one.9pc, sitting just below the market place-foremost accounts presented by Punjab National Bank (2pc) and Investec (one.95pc).

Paragon is part of the Paragon Group of Organizations, a FTSE 250 company that previously largely specialised in buy-to-allow lending. It says it is “a financial institution built on excellent previous fashioned, widespread sense ideas”.

“It is great to see new challengers to the established names bringing out leading charges and extended could it carry on, as account launches of this type are desperately required in the existing savings industry, to push costs back up and motivate other individuals to do likewise,” Ms Hannums mentioned.

The particulars: paragonbank.co.united kingdom/savings

Much more: When will curiosity prices rise?

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