Paragon Bank - Moving and Transferring out ISA funds?

boco803

Does anyone know what happens if you moved funds between your Paragon ISA accounts which leads to the account you're moving out of fall below its minimum balance? Is accrued interest just added to the affected account then closed by Paragon? Regardless if whether the account is setup for monthly or annual interest payments?

I'm referring to their Double Access and Triple Access ISA accounts.

Also, if you're instructing an external ISA provider to transfer funds out, I assume you could just treat it as an easy access account and just request funds to be transferred as soon as possible (as there's no waiting period)? Again, I assume accrued interest is just added to the account once Paragon receives the instruction - before they transfer out funds and close the account?

refluxer

Paragon may give you a small grace period in which to top the account back up to the minimum balance but, if they do close it, you should get any interest due to you, no matter whether that interest was normally paid monthly or annually.

That money would presumably end up in a non-ISA account, although I think both of those ISA accounts are flexible so you may be able to pay that money back into another ISA without it counting towards your 2026-27 ISA allowance (I've lost track of whether or how ISA rule changes affect flexible ISAs so you'd need to check on this).

And yes - if it's a true easy access ISA account (and not a notice or fixed rate ISA), then you should be able to transfer away immediately without penalty. As always though - read the account T&Cs to be sure of where you stand. Interest due up until the day of transfer will be added to the balance and transferred.

Have you checked the rates of those ISA accounts recently ? 4.0% for the Double Access isn't too bad (although can currently be beaten by EA cash ISAs elsewhere with no withdrawal restrictions), but the Triple Access Cash ISA is pretty low at 3.51%, so you'd be better off closing that down and transferring elsewhere anyway, even if it's just to the double Access account. That's presuming you're on the latest issues of both - if you're on previous issues, then the rates might be lower.

boco803

Thanks for your reply and insights.

I'll have to track down the T&Cs for those accounts - thanks.