Paragon Bank

Who they are

Paragon Bank traces its roots to 1985, when the group began life as a specialist residential mortgage lender. The bank itself was formally launched in 2014, brought to market partly in response to calls from the Competition Commission for more competition in the UK banking sector.

Today, Paragon Banking Group is one of the UK's largest providers of buy-to-let mortgages and savings accounts, listed on the London Stock Exchange and a constituent of the FTSE 250 Index.

Being online-only, everything from opening an account to moving money is done through their website or app. Customer reviews regularly describe a user-friendly app that is straightforward to use. Paragon also runs Spring, a separate savings app - and it is worth being aware that both trade under the same banking licence. All eligible deposits held with either Paragon Bank or Spring count together toward a single FSCS limit.

Savings accounts

Paragon's range covers easy access, cash ISAs, and fixed-rate bonds across a range of terms. The easy access savings account and easy access cash ISA both pay 1.50% AER variable, with no minimum beyond £1 - useful for money you might need in a hurry, though the rates sit well below the best on the market.

Paragon was the first bank to offer the cash Lifetime ISA, and remains one of only a handful of providers that do. The Cash Lifetime ISA currently pays 3.51% AER variable and accepts transfers in from other cash LISAs - a meaningful advantage if you want to move an existing LISA without dropping to a lower rate. Access is restricted to age 60 or above, or for a first home purchase, as with all LISAs. The minimum is just £1.

For savers who can lock money away, the fixed-rate bonds are where Paragon is more competitive. Terms run from one year up to five years, starting from £500 or £1,000 depending on the account. There are also fixed-rate cash ISA equivalents at the same range of terms. Rates change, so check the live figures on this page for the current numbers.

All accounts listed here are protected up to £120,000 per eligible account holder by the FSCS. Paragon Bank's eligible deposits are protected by the FSCS up to £120,000 per person, per authorised firm (banking licence).

Is it right for you?

There are no current account switch offers or cash bonuses to factor in - the decision comes down purely to whether the rates suit your needs and time horizon.

Paragon suits savers who are comfortable banking online and want a bank with genuine substance behind it - a long track record, a listed parent company, and real humans available on the phone when you need them.

One thing to watch: if you already save with Spring, your combined Paragon and Spring balances count toward one shared FSCS limit - keep that in mind if you are spreading money around for protection purposes.

The live rates shown on this page are always more current than anything written here, so check them before you decide.