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  • 2 Year Fixed Rate cash ISA

    1.26% AER*

If you’re looking to guarantee a tax-free return on you savings now and in the future a fixed rate cash ISA could be the right account for you. In return for locking away your money, you can be certain of how much interest your savings will earn tax-free.

For the tax year starting 6 April 2017, the new ISA allowance is £20,000 for cash and stocks and shares ISAs.  

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis

Ready to start saving?


Key benefits

  • A fixed rate of 1.26% AER*
  • A tax-free return now and in the future
  • Receive your interest monthly or annually
  • Simple and straightforward savings with no hidden costs
  • Transfer existing ISAs from other providers

Is this the right account for you?

  • You want to take advantage of your tax-free savings allowance or have previous ISA subscriptions to transfer
  • You want to know exactly what interest you’ll earn on your savings
  • You are happy to manage your account online
  • You’re looking to make payments into your account on a regular basis
  • You’ve already taken advantage of your ISA allowance and you’re not looking to transfer your money
  • You want an account where interest rates will move up and down, in-line with base rate changes

What you will need to apply

  • Your contact details
  • Your email address
  • Details of the UK current account, in your name (either as sole or joint holder), that you would like to set up as your nominated account
  • National Insurance number
  • Existing ISA account details if transferring

Ready to start saving?

Apply now

Summary box

Account name 2 Year Fixed Rate cash ISA
What is the interest rate? Annual 1.26% Gross** / AER*
Monthly 1.25% Gross** / 1.26% AER*
*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.
** Gross is the rate of interest payable before any income tax is deducted.
Interest will be paid monthly on the day of the month you first paid into your account or annually on the anniversary of making your opening payment.
Can Paragon Bank change the interest rate? No. The interest rate is fixed for the fixed rate period.
What would the estimated balance be after 24 months based on a £1,000 deposit? £1,025.36 based on £1,000 over 24 months at 1.26%
How do I open and manage my account? Online. Minimum balance £500 up to a maximum of £100,000 (plus any resulting interest). Account holders must be aged 18 or over and a UK resident for tax purposes.
Can I withdraw money? Withdrawals prior to your fixed term ending are subject to 180 days’ loss of interest. We will write to you before your fixed term ends to give you instructions on what to do next.
Additional information You have up to 30 days from the date of your application to make your opening payment.

Provided you make your opening payment within 14 calendar days of your application we’ll guarantee the interest rate shown when we received your application or, if higher, the rate on our website at the time you make your opening payment.

If rates change after 14 calendar days and you haven’t made your opening payment, we’ll pay the rate advertised on the day we receive your deposit.

You can only make new subscriptions by electronic transfer or cheque from the nominated account you choose during your application. This account must be in the name of the Paragon Bank account holder.

Transfers from an existing ISA provider are also permitted.
Things you need to know
  • All electronic or cheque deposits must be made from your nominated bank account. This account must include the name of the Paragon Bank ISA holder
  • If you are unable to make your opening payment in a single payment – perhaps due to limits on electronic payments set by your bank – we can accept additional payments into your account for 15 business days after we receive your opening payment
  • Unless you provide us with alternative instructions when your fixed rate term ends, your ISA will automatically switch to an Easy Access cash ISA which you can access at any time
  • We are registered under the Financial Services Compensation Scheme (FSCS) which means your eligible savings are protected up to the statutory limit of £85,000
  • If you change your mind about opening an account, you have the right to close your account within 14 days of receiving your welcome pack
  • If you are applying for this account as a power of attorney, you will need to call our customer services team on 0800 052 2222 to complete your application. For further information about power of attorney please visit our helpful information

FSCS box

Your eligible deposits with Paragon Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the £85,000 limit are unlikely to be covered. Please click here for further information or visit

FSCS protected small logo
Your eligible deposits with Paragon Bank are protected up to a total of £85,000 by the
Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.
See how you're protected
Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551