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Why choose a fixed rate account?

Plan for your future knowing exactly how much interest you’ll earn. Your interest rate is fixed for the whole of your fixed term, giving you certainty on how much interest your savings earn by the end of your fixed term.

The longer the term you choose to lock your money in the higher the interest rate you earn will be.

You can still spend your interest by choosing to have it paid monthly or annually into your nominated bank account rather than into your Paragon fixed rate account.

Making deposits into your fixed rate account

You have up to 28 days from the date of your application to make your opening deposit after 28 days the account will be closed, and you’ll need to reapply.

You can make additional deposits to your Paragon fixed rate account up to 5 business days after making your opening deposit. But, no further deposits or withdrawals are permitted throughout the fixed term.

Fixed rate accounts

View our competitively priced Fixed rate accounts currently available

1 Year 1.50%
AER*
Apply
2 Year 1.60%
AER*
Apply
3 Year 1.70%
AER*
Apply
5 Year 1.85%
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.

Maturing accounts

When your fixed rate term ends your account is maturing. We’ll notify you before this happens and explain your options. We won’t tie you into another fixed term without your permission, so you can relax knowing you won’t lose access to your funds without your permission.

Personal savings allowance

The Personal Savings Allowance allows you to earn tax-free interest on your savings. Remember this is a government scheme and can change.

There are limits depending on your tax banding. You can earn £1,000 of tax-free interest per tax year if you’re a lower rate tax payer, and £500 of tax-free interest for higher rate tax payers. If you earn more than £150,000 the Personal Savings Allowance doesn’t apply.

View fixed rate savings accounts
Paragon Bank’s savings accounts are simple, clear and easy to understand

- Lee Renaut

What else should I know?

Making deposits

You have 28 days from the date of your application to make your opening deposit, and get the rate your apply for. After 28 days your account will be closed and you’ll need to reapply. ​

We understand it can be difficult making large one off deposits, that’s why with our fixed rate accounts you can make additional deposits for five working days after your initial opening deposit. ​

After those five days, you can’t make any additional deposits or withdrawals for the rest of the fixed 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

During your application will need to give the details of a UK current account held in your name, this is your nominated bank account. It’s the only account we can accept deposits from, and the only account we will send withdrawals to.

Account management

You can open and manage our Fixed Rate accounts online or by post.

Your options at maturity

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

Personal savings allowance

Launched in 2016, the personal savings allowance lets you earn a certain amount of tax free interest on your savings. Lower rate tax payers can earn up to £1,000 of tax free interest, high rate tax payers can earn up to £500 of interest. If you earn more than £150,000 the personal savings allowance isn’t available to you.​

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.

Documents

We've collected all our useful documents in one place for your convenience.

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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