Paragon Bank launches with loans and savings

Banking and Borrowing

Updated on 18 February 2014 | 5 Comments

Paragon Group launches online bank, promising simple products and old-fashioned values.

Specialist lender the Paragon Group has launched Paragon Bank, which will offer loans and savings products.

The bank is based in Solihull and will offer its products online. It promises a “simple, safe and straightforward approach to banking”.

Who is Paragon?

The Paragon Group is a FTSE 250-listed company, founded in 1985, that offers buy-to-let mortgages and loan management services.

What will Paragon Bank offer?

Paragon Bank is launching with two car finance loans, one hire purchase and the other lease purchase.

It says it will launch both instant access and fixed rate savings accounts in the spring, although there are no details as yet of what rates will be on offer.

Paragon will also launch personal loans later in the year.

There's no word on whether it will launch a current account.

The bank says it doesn’t have “expensive branches or complicated products”. We’ll see about the latter in a few months’ time.

Compare current accounts with lovemoney.com

Is Paragon protected?

Paragon Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. It’s also part of the Financial Services Compensation Scheme, which guarantees up to £85,000 of money you hold with any banking group in the event it goes under.

More new players to come

Paragon’s launch is one of several planned for this year. Both Tesco Bank and Virgin Money – which already offer credit cards, savings accounts and mortgages – are due to launch current accounts. Meanwhile, the Post Office is set to roll out its current account nationwide, following a pilot in the east of England.

In the meantime, to see who's offering the top interest rates on savings right now, take a look at Where to earn most interest on your cash.

Compare current accounts with lovemoney.com

More on banking and saving:

Why some current accounts beat top savings accounts

Best buys that are only for banks and building societies' existing customers

Where to earn most interest on your cash

The best Cash ISAs

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