Paragon Bank ISA

schiff

We promise our customers no hidden catches, so we’re writing to tell you about an important change you need to know about. From 12 May 2020 the interest rate on your Ltd Ed Easy Access Cash ISA 5 is decreasing.

Current interest rate AER* Future interest rate AER* Ltd Ed Easy Access Cash ISA 5 1.25% 1.00%

schiff

Equivalent to 1.25% if you pay tax on interest.

ratechaser

schiff said:

Equivalent to 1.25% if you pay tax on interest.

Depends on your marginal/effective tax rate. Could be equivalent to 1.6% (higher rate), 1.82% (additional rate) or even 2.5% (nasty 'just over 100k income' rate!)

ColdIron

Just had a similar email about my Easy Access Issue 6 at 1.31%. A shame but not unexpected

ratechaser

ColdIron said:

Just had a similar email about my Easy Access Issue 6 at 1.31%. A shame but not unexpected

Ah, think Mrs RC has that one - what's it reducing to as she's not seen an email (yet)?

Time for premium bonds I think...

ColdIron

Same as the ISA, 1.00%. I was keeping it up my sleeve for when my Marcus bonus expires. A triumph of hope over experience

margaretx9

To be fair 1% now for an instant access cash ISA isn't bad.
Many of the big players have reduced their instant access rates to as low as 0.01% on similar products.
Paragon did have a mix of closed instant cash ISA issues paying 1.2 to 1.3% - so at least now they are all aligned at 1%!

colsten

Shawbrook is still 1.19% right now
https://www.shawbrook.co.uk/direct/savings/personal-savings/cash-isa-accounts/

margaretx9

colsten said:

Shawbrook is still 1.19% right now
https://www.shawbrook.co.uk/direct/savings/personal-savings/cash-isa-accounts/

Thanks.
Wonder how long it will continue to pay a higher rate on an instant access ISA than on its one year fixed rate ISA?

Shedman

Anybody had any notification about the Paragon Easy Access Cash ISA Issue 7 rate dropping from 1.2% as we don't seem to have any emails reducing the rate (yet!)?

schiff

As of a week ago I had two accounts with Paragon, the EA Cash ISA (issue 5) paying 1.25% (reduced from its original 1.45% in January), and the 120-day Notice account paying 1.8% (due to be reduced to 1.5% on May 22nd). Was feeling quite content. I'll keep the ISA as it's easy access and the Notice account as they have to give at least 120 days if they cut the rate again. Things may or may not be different on the interest front in 120 days time. We'll see.