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FAQs / Savings questions

Interest

What is the interest rate on my account?

Your product terms and conditions will detail what the interest rate on your specific account is.

Alternatively, you can log in and find it on your account summary screen.

 

Do I pay tax on my interest?

It is your responsibility to declare and pay the required tax on your interest.

The government introduced the Personal Savings Allowing in 2016 which allows you to earn a certain amount of tax-free interest on your savings dependant on your tax bracket.

Learn more about the Personal Savings Allowance

All your interest from ISA savings is tax-free. However, the annual ISA allowance limits how much money you can deposit into an ISA every year. For the tax year 2020/2021 the limit is £20,000.

Learn more about the ISA allowance

 

How is interest calculated and paid?

Interest is calculated daily, compounded and paid gross on either a monthly or annual basis. This depends on how you elect to receive your interest and the specific product you hold.

The date your interest is paid depends on the date of your opening deposit, subject to your product terms and conditions

 

How do I change my interest instructions?

You can choose how you’d like your interest paid either annually or monthly. Where you’d like it paid to: your current Paragon account, your nominated bank account or another Paragon account. Subject to your product terms and conditions.

If you’re an online account holder you can change your interest instructions easily online. Simply log in to your account and select “manage account” and “account details”.

If you change your instructions you must do so before 5pm at least one working day before your interest is paid for it to take effect that month.

If you’re a postal account holder, please write to us including your username and account number to change your interest instructions. Or download, print and return a Change of interest form.

Change of interest instruction form

Return to: RTEX-LLUT-KKKE (freepost), Paragon, PO Box 850, Wallsend NE28 5BJ

 

What if my rate changes?

We will contact you before the interest rate changes on your account.

If the rate goes down, we will contact you 14 days before hand. If your account has a notice period longer than 14 days we will notify you in line with your required notice period. If you don’t choose to close your account, we’ll assume you’re happy to accept the changes.

If the interest on your variable rate account increases we’ll let you know as soon as possible, this might be after the new rate is applied.

 

How can I get my annual certificate of interest?

While you hold an online account with us, you can generate an interest statement online for any of your accounts, Simply login to your account, select “manage account” and “interest statement” from your account summary screen.

You can also find the closing statement and summary of interest for your closed accounts by selecting “closed accounts”.

If you’re a postal account holder, we will post you an annual certificate of interest, or you can request a certificate of interest by calling us on 0800 052 2222

Documents

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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