Good news for savers as bank offers ‘competitive’ 1% interest rate account – key benefits

Martin Lewis reveals the best savings accounts

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Available to both new and existing customers, the new savings account is for Britons looking to get the most interest from their hard earned cash without locking money away into a fixed rate for a year or more. Interestingly, savers can still access their savings if they need to.

Since the Bank of England (BoE) decided to keep the base rate at a record low of 0.1percent there have been few savings accounts on the market to entice savers.

However that could all be about to change with this new account from UK based Paragon Bank.

Although it’s not an easy access savings account, savers can access their cash if they need to as long as they provide 120 days notice before making any withdrawals.

It’s a good choice for people who are looking to save for the medium to long-term.

Savers can request an unlimited number of withdrawals on the account as long as four months notice is given.

However, it’s not for everyone and savers will need to deposit a balance of at least £500.

Derek Sprawling, savings director at Paragon Bank, said its new savings account would appeal to regular savers who need a bit of flexibility.

“This account is perfect for people looking to save money regularly and who are confident they will not need urgent access to the funds.

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He added: “Notice accounts are a great ‘halfway house’ option for people who want to maximise a return on their savings without fixing for the long-term.”

This account could be an option for people who are looking to earn interest on their emergency fund.

Earlier this year, Paragon was named Best Internet Account Provider at the Moneyfacts Awards, in recognition of its competitive pricing.

Paragon Bank is also a provider which is signed up to the Financial Services Compensation Scheme (FSCS).

This means savings up to the value of £85,000 are protected – providing savers with peace of mind.

Savers with the bank can also benefit from Paragon Banks’s ISA Wallet feature.

This allows savers to spread their £20,000 annual ISA allowance across multiple cash ISAs.

The Limited Edition Easy Access ISA also includes a flexibility feature, which allows cash to be withdrawn and replaced from it without savers using their tax-free entitlement.

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Savings rates still have a long way to go before they return to pre-pandemic levels.

Following the Bank of England’s decision to keep the base rate 0.1 percent, banks have been limited in what interest rates they can offer.

Currently, 1 percent is considered “competitive” despite being much higher before the pandemic.

It’s good news for Britons who are looking to save but need access to their cash if they need to.

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