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Fixed rate accounts

If you’re looking to invest a lump sum, a fixed rate account could be the perfect way to plan for your future with peace of mind that you will know exactly how much interest your savings will earn.

See our fixed rate accounts

Fixed rate accounts offer you a higher rate of interest in return for locking your money away for a period of time, usually between one and five years. Typically, the longer you choose the higher the rate will be. Once you’ve chosen your rate, this will remain the same during the fixed period meaning you will know exactly how much interest you’ll earn by the end of your term.

Why choose a fixed rate account?

  • Know exactly how much you'll earn
  • Choose monthly or annual interest
  • Tax-free within your Personal Savings Allowance or as a cash ISA
  • Higher interest with longer term
What else should I know?
Making payments

Once you’ve opened an account, you will need to make your payment into the account. This is a lump sum one off payment and as the account is fixed you will not be able to add further deposits during the rest of the term.

Withdrawals

You will only be able to withdraw your money from your account when the fixed rate term comes to an end, known as your maturity.

Nominated bank account

When you open your account via our online application process, you will be asked to enter the details of your nominated bank account. This is the account that you will need to make your opening payment from. And, should you choose to withdraw your funds when the fixed term comes to an end, we’ll return your money to the same nominated account.

Online account

The account is operated online, giving you the flexibility to check your balance and print statements around the clock.

Your options at maturity

When your fixed rate term finishes we will notify you about your options in advance by email. You then have the option to choose to re-invest your money or withdraw it, by sending it back to your nominated account.

Personal savings allowance

Launched in 2016, the personal savings allowance allows you to earn interest on your savings tax-free. There are limits depending on your tax banding. Currently £1,000 for lower rate tax payers, £500 for higher rate but if you earn more than £150,000 the personal savings allowance doesn’t apply.

ISA allowance

Our range of fixed rate cash ISAs allow you to make use of your ISA allowance or transfer any previous ISAs you may already hold. Any deposit you make into a cash ISA, will earn interest free of tax. This is in addition to your Personal Savings Allowance. However, with our fixed rate cash ISAs, you have the option to access your money the whole term of your account, subject to an interest penalty. Any new ISA subscriptions are restricted each year by the annual ISA allowance, but we also accept transfers of previous year ISAs.

Fixed Rate Accounts

View our competitively priced Fixed rate accounts currently available

1 Year 1.92%
AER*
Apply
2 Year 2.20%
AER*
Apply
3 Year 2.37%
AER*
Apply
5 Year 2.66%
AER*
Apply

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

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

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