Bank increases interest rate on savings account to ‘competitive’ 4.75%

Paragon Bank has announced it will be raising the interest rate of one of its most popular savings accounts.

The bank confirmed it is increasing the rate of its non-ISA Double Access savings account.

Following this most recent hike, the interest paid on this particular account will be 4.75 percent AER.

This savings account permits at least two withdrawals per year, but further withdrawals will result in the rate plummeting to 1.50 percent.

On top of this, the non-ISA Double Access savings account has a minimum operating balance of £1,000.

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According to the bank, more than 7,000 new and existing customers have applied for the product since its creation on July 28.

This recent move by Paragon Bank comes amid a wave of interest rate increases from high street and digital banks.

Financial institutions are responding to the Bank of England raising the base rate for the 14th time in a row.

Now at 5.25 percent, the base rate is being passed onto savers by banks and building societies.

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Derek Sprawling, Paragon Bank’s Savings director, outlined why savers should take advantage of this particular deal.

He explained: “I am delighted that new and existing customers are taking proactive steps to grow their savings by applying for Paragon’s new Double Access savings account.

“Thanks to our newly increased rate, they now have the potential to grow their savings pots even further.

“Our Double Access savings account provides savers with not only competitive rates but also the reassurance that they can access their savings at the time of emergency or if they want to make a major purchase.”

The finance expert broke down the financial institution’s recent successes in attracting customers.

Mr Spawling added: “By offering a broad range of saving accounts and cash ISAs that are straightforward to open and manage we’re confident that the 20.5 percent increase in deposits we recorded in our most recent Half Year results will continue.”

Recently, savers have flocked to Paragon Bank to house their savings in light of their competitive deals.

According to its third-quarter update, the bank confirmed that it had increased its retail deposits by 21.6% in the year to 30 June to £12.3 billion.

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