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.
[SPOTLIGHT]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:
Peer-to-peer site paying up to £50 cashback to new lenders