Paragon Bank offers new top three-year savings bond
Get a rate of 2.50% when you lock your money up for three years with Paragon Bank.
Savers looking to get a good rate on their money over the medium term have been given a boost with the launch of a new market-leading three-year fixed rate bond.
Paragon Bank has launched a three-year bond paying a rate of 2.50% on balances from £1,000 to £100,000.
How the bond compares
Here’s how it compares to other three-year bonds available today.
|
Account |
AER |
Minimum deposit |
Access |
|
Paragon Bank Three Year Fixed Rate |
2.50% |
£1,000 |
Online |
|
Shawbrook Bank Three Year Fixed Rate Bond |
2.50% |
£5,000 |
Online, post |
|
State Bank of India Fixed Deposit |
2.50% |
£10,000 |
Branch, post |
|
2.40% |
£1 |
Online, branch, post, phone |
|
|
ICICI Bank HiSave Fixed Rate Account |
2.40% |
£1,000 |
Online, phone |
|
2.40% |
£25,000 |
Online |
|
|
2.35% |
£1,000 |
Online, post, phone |
|
|
2.35% |
£10,000 |
Branch, post |
As you can see, Paragon isn’t the only bank to pay 2.50% across a three-year term. Both Shawbrook and State Bank of India pay the same rate, though both require much more significant deposits, meaning the Paragon account is open to more savers.
If you want to lock your money up for longer, then you can get a rate of as high as 3.25%, but that would involve locking your money up in a seven-year fixed rate bond from FirstSave or SecureTrust Bank, both of which require a £1,000 deposit.
Over five years, the top rate also comes from SecureTrust at 3.11%, while over four years you can get 2.85% from Shawbrook Bank on deposits of over £5,000.
For shorter terms, you can get 2.32% from Islamic Bank of Britain over two years for deposits over £1,000, while the top one-year fixed rate bond also comes from Islamic Bank of Britain and pays 1.9% on the same minimum deposit.
Paragon Bank: what you need to know
Paragon Bank is a newcomer to the banking scene, moving into the savings and loan markets earlier this year. It’s part of the Paragon Group, a FTSE 250-listed firm which offers buy-to-let mortgages and loan servicing.
Paragon Bank is an online bank, so there are no branches to visit. As it is a registered bank, your savings are protected by the Financial Services Compensation Scheme.
More on savings and ISAs:
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