Paragon Bank has re-launched its Double Access Savings account with an interest rate of 5.05 percent, earning an “excellent” Moneyfactscompare.co.uk rating.
Savers can launch the account with £1,000 and up to £500,000 can be invested overall.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Paragon Bank has re-launched its Double Access Savings Account – Issue Five this week, paying a rate of 5.05 percent AER.
“This account may be a tempting choice for those who don’t mind restricting access to their savings pot, as only two withdrawals are permitted each year.
“Any additional withdrawals will result in the rate dropping significantly to 1.5 percent, so careful planning is necessary.
“However, for those looking to supplement their income, there is also an option paying monthly interest of 5.05 percent AER.
“Overall, the deal receives an Excellent Moneyfacts product rating.”
To open an account, savers must be aged 18 or over and live in the UK.
But while Paragon Bank may be offering a competitive deal, it doesn’t quite take the top spot. Metro Bank’s Instant Access Savings Account is currently offering an Annual Equivalent Rate (AER) 5.22 percent.
A minimum of £500 must be deposited within 28 days to earn the limited edition rate and interest is paid monthly. Access is allowed at any time in a branch, online, or by phone.
Ulster Bank’s Loyalty Saver falls just behind with an AER of 5.2 percent on deposits of over £5,000.
Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent. Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
For savers with a smaller deposit, Cahoot’s Simple Saver (Issue Two) is offering an AER of 5.12 percent.
Cahoot, which is a division of Santander, offers savers the deal from a minimum deposit of just £1.
Interest is calculated daily and can be paid annually or monthly and withdrawals can be made at any time by transfer to another account.
