Cash ISAs

What is a cash ISA?

ISAs are Individual Savings Accounts which give UK taxpayers tax-free status on their savings, now and in the future.

Paragon offer fixed rate and easy access cash ISAs. So, you can either lock your money away for a higher rate benefit or have unrestricted access. All with tax-free ISA status on your eligible funds.

Learn more about ISAs

What is the tax-free annual ISA allowance?

Every tax year the government sets a maximum amount you can invest in an ISA between April 6 and April 5 the following calendar year. This is your annual ISA allowance or subscription. For the 2021/2022 tax year the ISA allowance is set at £20,000. Your allowance must be used with one provider, but can be split between different types of ISA.

How to withdraw from your fixed rate ISA?

You can make early withdrawals from your fixed rate ISA however this is at a penalty. A loss of interest, or capital if enough interest has not been earnt. Your product terms and conditions will tell you exactly the penalty for early withdrawals from your cash ISA.

You will lose the tax-free ISA status on any funds you withdraw, without going through an ISA transfer.

How do I transfer an ISA?

To keep the tax-free ISA status on your money, you must transfer your ISA through your provider and not through a withdrawal.

You can transfer your existing ISA to Paragon either online or by post.

What period does the tax year cover?

The tax year runs from 6 April to 5 April the following year. Each tax year, you can either open a new ISA or continue to save in an existing ISA, until you reach your annual allowance and you’ll earn tax-free interest on your whole balance every year.

What is the maximum balance on cash ISAs?

Your maximum balance across Paragon can not exceed £500,000 per person.

In cash ISAs you can hold up to £500,000 per person.

Your product terms and conditions will detail the minimum and maximum balance on your specific account.

What is the ISA Wallet and Flexible ISA?

Our ISA Wallet, also known as an ISA wrapper, allows you to spread your tax-free ISA allowance across multiple ISAs with Paragon.

Our cash ISAs are also flexible. That means you can withdraw and replace your ISA funds in the same tax year, without using more of your ISA allowance.

For example, you can deposit £10,000, withdraw £5,000 and later deposit £5,000. With our flexibility you’ve only used £10,000 of your annual ISA allowance.

Together they give you the freedom to maximise on your annual ISA allowance.

Be careful, early access to fixed rate or notice ISA funds is subject to penalty.