Paragon Bank launches market-leading easy access account and earns ‘excellent’ rating | Personal Finance | Finance newsbhunt

Paragon Bank has launched a new issue of its Double Access savings account with a market-leading 5.25 percent AER, earning an “excellent” Moneyfacts rating.

The account can be opened with a minimum deposit of £1,000 and up to two withdrawals can be made a year to retain the top interest rate.

Derek Sprawling, Paragon Bank savings director, said: “We’re pleased to launch the latest issue of our Double Access account, paying a market-leading rate.

“This product could suit those savers who are happy to lock their money away but may want to retain access to it in the event of a rainy day.”

Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This account may be a tempting choice for those who don’t mind restricting access to their savings pot, as only two withdrawals are permitted each year, and any additional withdrawals will result in the rate dropping significantly to 1.5 percent.

“However, for those possibly looking to supplement their usual income, this deal also offers an option paying monthly interest.”

Ms Eastell added: “Overall, the deal places itself within the top 10 of its sector, and an overall Excellent Moneyfacts product rating.”

The account can be opened online by people aged 18 or over and up to £500,000 can be invested in the account overall.

However, given that only two withdrawals are allowed per year without incurring an interest rate reduction, some savers might be looking for a bit more flexibility from their easy access account.

Beehive Money’s Limited Issue Easy Access is paying 5.2 percent on a minimum deposit of £1,000. Up to £85,000 can be invested overall and unlimited withdrawals are permitted.

Anyone earlier along in their savings journey who doesn’t have a four-figure lump sum to open an account can find a competitive rate with Cynergy Bank.

Cynergy Bank’s Online Easy Acccess Account (Issue 68) is offering an AER of 5.15 percent for the first 12 months from a minimum deposit of £1. Up to £1million can be invested and withdrawals are permitted at any time.

Placing just behind is Cahoot’s Simple Saver (Issue Two) with an AER of 5.12 percent. Cahoot, a division of Santander, offers savers the deal from a minimum deposit of just £1.

The account can be launched and managed via online banking and up to £2million can be invested overall. Withdrawals can be made at any time by transfer to another account.