Paragon Bank

shylockinadress · 14 August 2016 at 12:46PM

Have applied for and been granted fixed rate account with Paragon.
I like to do a small initial transfer to check all working OK. Especially as in this case money is routed via a third party (HSBC). My initial transfer has been declined as insufficient and has I'm told been transferred back to me. A second transfer of £1000.00 appears to have also been declined but neither payment has arrived back in my bank account. Somewhat reluctant to transfer my intended 10K .
Does a anyone have any experience with Paragon?

Have to add that I have accounts with Shawbrook funded in a similar way without problem.

alternate · 14 August 2016 at 1:02PM

check the t&c, some only allow one transfer to fund the account.

xylophone · 14 August 2016 at 1:05PM

Is it the type of account where there is a minimum initial subscription and no more can be added after the initial subscription?

What does it say in the T&Cs?

YorkshireBoy · 14 August 2016 at 1:08PM

You can make more than one payment with this one, but second and subsequent payments must arrive within 5 days of the first (which must be at least £1,000 - sounds like it wasn't).

Doesn't explain why OP hasn't seen the cash returned though...unless they're doing it by BACS Direct Credit.

steady__eddie · 14 August 2016 at 2:49PM

I opened a current account with them some months ago just before their interest rate dropped and sent them a grand using faster payments. Immediately afterwards my donating account was suspended by my bankers, "due to suspicious activity on the account".
I am not suggesting in any way that this was due to any actions on the part of Paragon Bank but I found it to be terribly frustrating and time consuming to get my bank to lift the suspension even though I was in branch. It has to be done with with their fraud department by phone. I almost exceeded my free minutes that month.
A trawl on Google revealed that I was not the first person that this has happened to. Subsequent dealings with them have been hassle free.

Ifts · 14 August 2016 at 4:52PM

It is important that you quote your Account Application Reference Number as the Payment Reference when making any electronic payments so Paragon Bank can link the payments to your account - otherwise the payment will be returned back to the account you used to send it from.

As Paragon Bank use HSBC Bank to receive electronic payments, the only way they can link your payment to your account is from your unique account application reference number.

Also make sure all electronic payments are sent from your nominated account.

This is what I got in a email form Paragon Bank on how to make payments into your account:

Make your first deposit

It's easy to pay money into your new savings account. You can either make an electronic bank transfer or send us a cheque, but it must be from your nominated account.

Remember you have up to 30 days from the date of your application to make your deposit. However in order to secure the rate that you applied for, you must make it within 14 days.

Once you’ve made your first deposit, you will be able to continue to make additional payments for up to 5 days. After this, you will not be able to make any further payments into your account. Please be aware that some banks limit the amount you can transfer per day.

Electronic bank transfers

You can make an electronic payment from your nominated account using the following details:

Sort code: 40-02-50
Account number: 31344897
Name of payee: Paragon Bank
Payment reference: This will be your account opening reference that got issued to you when you applied and got accepted for the account online.

Important: The payment reference allows us to identify your money and apply it to your account. Without this reference, there could be a delay in processing your deposit and we may return your payment.

Also here is the number for Paragon Bank (UK based call centre): 0800 052 2222.

newuser78 · 14 August 2016 at 9:54PM

Agree with Ifts - the important part is the reference number.

I opened an account with Paragon Bank a few weeks ago and apart from their website not being user-friendly (login is very fiddly), it all went smoothly.

Aretnap · 14 August 2016 at 10:42PM

Do you know who did the declining? It may have been the bank you sent the patent from rather than Paragon, at least for the second payment. If sending a large amount to a new account I also like to send a token payment (say a pound) first, check it arrives safely, then send the rest. A couple of times (by no means always, but at least once from HSBC) this has resulted in the second transaction being flagged suspicious and being placed on hold. Mildly annoying, but quickly resolved with a phone call to my bank. The guy on the phone told me that the pattern of a small payment quickly followed by a large payment is often associated with a scam or fraudulent transaction (not quite sure of he exact mechanism) so it can be flagged up as suspicious, even though there are also legitimate reasons why people do it.

shylockinadress · 15 August 2016 at 1:26PM

Thanks to everyone for replies.
The email from Paragon stated my minimum payment was insufficient, but it failed to tell me what would be sufficient!
I did try T&Cs but nowhere did it state minimum payment. As the product had been withdrawn I drew a blank looking on the website. However my guess at £1,000 proved correct. Nice lady on the phone this am, and soothing music too. Seems faster payments is slower than normal FPs as 3rd party involved. However all well and happy to make additional payment now.

Leasholm15 · 28 April 2017 at 12:03PM

I have just tried to open a 2 year fixed rate ISA using previous years ISA monies with Paragon Bank and the application form states that I am not allowed to open another ISA in this financial year.ie 17/18. I phoned and was told that this is the case which is a nonsense, unless the rules have changed. Has anyone else experienced this?

ColdIron · 28 April 2017 at 12:30PM

This is an old thread and I see you've started a new thread on this

Paragon Bank

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