Paragon or NatWest 1 year fix rate 4.4%

financehelp23

Which one is better and easier to use? Paragon has the monthly option. Still trying to figure out what is the maturity date. NatWest's maturity date is 10th July 2014. 

Rich2808

Personally I would pick Paragon - as they are a split isa provider so you can pay into multiple other cash isas with them using your £20k isa allowance (if you don't use up all £20k on this product). With Natwest - that is your lot unless you want to pay into a help to buy isa - which they allow for that product only - or a stocks and shares isa (with them or another provider). But it depends what works best for you - if say you are an Nat west current account holder.

Rates may go up of course - last week Paragon were paying 4.2% for a one year and now their product is paying 4.4%.

financehelp23

Rich2808 said:

Personally I would pick Paragon - as they are a split isa provider so you can pay into multiple other cash isas with them using your £20k isa allowance (if you don't use up all £20k on this product). With Natwest - that is your lot unless you want to pay into a help to buy isa - which they allow for that product only - or a stocks and shares isa (with them or another provider). But it depends what works best for you - if say you are an Nat west current account holder.

Rates may go up of course - last week Paragon were paying 4.2% for a one year and now their product is paying 4.4%.

Thanks, this is helpful! Do you recommend annual interest or monthly interest Paragon? Also do you know how they count maturity date?  

refluxer

When the AER is the same for monthly or annual interest, then you'll get the same amount of interest with either option. (There may be a small difference of a pound or two due to the way interest is calculated but this isn't usually enough to make you choose one over the other).

Banks often offer a monthly option as some people like to have the interest paid away to a different account, however if you don't need it as income then it obviously makes more sense to have the interest paid into the ISA so that the amount you shield from tax can grow. I tend to do this and have it paid monthly when it's an option, just so I can see the balance growing more regularly than it would if it was paid annually !

When a specific end date isn't clearly stated for a fixed rate ISA (and Paragon don't tend to do this), then it'll usually be either 1 year from the date it's opened or 1 year from the date it's first funded.

Barkin

If only they had a Product Terms & Conditions document on their website that clarified this...