Bank relaunches triple access savings account with competitive rate

Paragon Bank is offering savers 3.35 percent interest with its relaunched Triple Access ISA account.

Savers can get the interest rate with the flexibility to make up to three withdrawals within a 12-month period.

The interest rate drops to 0.75 percent once they have made a fourth withdrawal. Customers can make any number of deposits up to £500,000.

The account also benefits from the flexible ISA feature, meaning a person can make withdrawals without it affecting their annual ISA allowance.

Paragon Bank also offers an ISA Wallet feature, allowing individuals to open more than one cash ISA during the same financial year.

Derek Sprawling, savings director at Paragon Bank, said: “ISAs have grown in popularity this year as higher rates mean that savers with larger balances are more likely to breach their Personal Savings Allowance.

“Saving within the ISA wrapper means that savers can protect their interest from the taxman. We have brought this account back due to strong demand from savers who want the benefit of a higher rate, but with access to their savings.

“By limiting savers to three withdrawals per year we can offer a higher rate in return for rainy day savings.”

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A person can deposit up to £20,000 each tax year in ISAs but they also have the option to transfer over ISA funds from previous tax years.

ISAs are a popular way to save as any interest earned is not taxed nor is any income a person derives from an ISA.

Many banks and building societies have increased their interest rates over the past year as the Bank of England has continually increased the base rate.

The base rate is currently at 4.25 percent with some analysts predicting it could go up again, as managers at the central bank work to curb high levels of inflation.

Lucinda O’Brien, savings expert at money.co.uk, previously encouraged Britons to “snap up” good savings rates before the expected drop in inflation, meaning interest rates could go down again.

Sarah Coles, head of personal finance at Hargreaves Lansdown, told Express.co.uk Britons who have now switched easy access accounts for some time may want to look around for a better deal.

She said: “You could wait for rates to peak before doing this, but if your money is in an unrewarding high street account in the interim, you risk missing out on significant interest in the interim.”

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