What interest rate does the Paragon Bank 2 Year Fixed Rate Savings Account pay?

The Paragon Bank 2 Year Fixed Rate Savings Account pays 4.30% AER, fixed for 2 years.

How much interest could I earn?

Saving £10,000 for 2 years would earn about £878 at 4.30% AER. This assumes the rate stays the same and interest stays in the account.

How much can I pay in?

You can deposit at least £500.

Can I withdraw my money?

No. Your money is locked in until the fixed term ends, so only put in what you won't need before then.

When is interest paid?

You can choose to have interest paid monthly or annually.

Is my money protected?

Yes. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence.

How does it compare with other two-year fixed rate bonds?

At 4.30% AER it ranks 50th of 63 two-year fixed rate bonds we track. The best pays 5.16% and the average is 4.61%.

Dashboard

Fixed Rate

Paragon Bank 2 Year Fixed Rate Savings Account Review

A two-year fixed rate bond from Paragon Bank. It ranks 50th of 63 two-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 2 years

4.30%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£500

Max balance

No limit

Access

At maturity only

Interest paid

Monthly/Annually

How It Stacks Up

Ranks 50th of 63

2-year fixed bonds we track

Below average

This account 4.30%

UK CPI (Aug 2026): 3.10%; Pays 1.20% more
Average 2-year fixed: 4.61%; Pays 0.31% less
Best 2-year fixed: 5.16%; Pays 0.86% less

Inflation: ONS. Averages and best rates: accounts on DepositScout.

Compare fixed bonds

Pros and cons

Pro: Savers who want a monthly income
Con: Your money is locked in for 2 years

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Estimated returns with Paragon Bank's Fixed Rate

What you could earn with Paragon Bank's 2 Year Fixed Rate Savings Account.

Estimated interest

£1,000 saved

£87.85

At 4.3% AER

£5,000 saved

£439

At 4.3% AER

£10,000 saved

£878

At 4.3% AER

£50,000 saved

£4,392

At 4.3% AER

Estimated over the 24-month term, if the rate stays the same and interest is left in. Amounts outside the account's minimum or maximum aren't shown.

Work out the tax on your interestSee how much of this interest could be taxed.

Our Expert Opinion on Paragon Bank 2 Year Fixed Rate Savings Account

Jan WatermannCo-Founder, DepositScout

Paragon Bank's 2 Year Fixed Rate Savings Account pays 4.30%, which beats August 2026 CPI of 3.1% by 1.20%, so your money does grow in real terms over the two-year term. That said, the rate sits below the market average for fixed-rate accounts, and it is 1.05% behind the category leader at 5.35%, which is a meaningful gap. The obvious catch is that you cannot access your money at all until maturity, so only commit funds you are certain you will not need. With a £500 minimum to open, alternatives like Kent Reliance's 2 Year Fixed Rate Bond at 4.91% are worth a look first.

Compare Fixed Rate Bonds