Paragon Bank makes market-leading easy access increase

The Triple Access Account - Issue 11 can pay its interest monthly or on anniversary.

Paragon Bank increased the rate on its Triple Access Account - Issue 11 to 3.10% AER today, making it the top-paying easy access account on the market.

In comparison, the next best rate on our chart stands at 3.05% AER and is offered by Newcastle BS, OakNorth Bank and Sainsbury’s Bank.

While these three providers can only pay interest either monthly or on anniversary, Paragon Bank allows its customers to choose how their earnings are paid.

Monthly interest payments will likely benefit those who are looking to supplement their regular income, especially while inflation remains in double digits, while payments on anniversary can appeal to those who wish to further benefit from compound interest.

Initial deposits start at a single pound, while opening and managing this account can only take place online

What could deter potential savers is that Paragon Bank’s rate will drop to 0.75% AER for those who make four or more withdrawals in a 12-month period.

This reduced rate is currently beaten by several different easy access accounts on the market and is 3.25 percentage points behind the current Bank of England base rate.

However, this rule isn’t uncommon.

Newcastle BS and Sainsbury’s Bank, which both offer an easy access rate of 3.05% AER, include a penalty for four or more withdrawals in their respective accounts.

Both reduced rates are higher than Paragon Bank’s 0.75% AER, with Newcastle offering 1.75% AER and Sainsbury’s Bank slashing its return to 0.80% AER.

Not only does Paragon offer the best easy access rate, but it also betters the return on all notice and instant access ISA accounts on the market.

Still, savers will need to consider this carefully as an ISA comes with important tax advantages. This is explained in more detail in an article published earlier this week.

Otherwise, there are several different notice accounts which better the rate of 3.10% AER.

These can be found and compared in more detail on our charts.