Paragon Bank has relaunched its “popular” Cash ISA with a 4.8% interest rate – for a limited time only.
The Double Access ISA, which is available to new and existing customers, allows savers to make two withdrawals within a 12-month period.
If three or more withdrawals are made, the rate drops to 1.25% Annual Equivalent Rate (AER). The minimum balance is £1,000 and the maximum balance is £500,000.
Paragon Bank decided to relaunch the account following a surge in demand for its ISA products, with “record” applications at the start of the tax year.
According to Paragon’s data, the value of ISA balances grew by 36% year-on-year as savers looked to protect their interest earnings from tax, highlighting the continued appeal of these accounts.
Andrew Wright, head of savings at Paragon Bank, said: “After a successful tenth year operating as a licenced bank in the UK, we’re delighted to be able to bring back our Double Access ISA to new and existing customers this December.
“Our Double Access ISA always proves to be popular with savers because it provides a great rate whilst also allowing them to withdraw funds if they need to, providing flexibility for their savings.”
The bank has continued to develop its ISA offering, launching an ISA Wallet to allows savers to open more than one ISA account with the bank, and Flexible ISAs, which enables savers to withdraw from their ISA without it impacting their £20,000 annual allowance.
The bank is regulated by the Financial Conduct Authority (FCA) and up to £85,000 of deposits are protected by the Financial Services Compensation Scheme (FSCS).
While Paragon Bank may be offering a competitive rate for easy access Cash ISAs, it isn’t quite taking the top spot.
Plum’s Cash ISA offers a tiered interest rate of 5.18% on deposits over £100, while a lower rate of 2.5% is paid on deposits below this. The rate includes a 1.37% bonus for 12 months.
Interest is paid monthly and up to three withdrawals are permitted per year to keep the higher interest rate.
For savers looking for more flexibility to dip into their pots, Trading 212’s Cash ISA offers an AER of 4.9% with unlimited withdrawals. A minimum deposit of £1 is required to launch the account and interest is paid daily.
