ISA offer: New ‘best-buy

Martin Lewis offers advice on savings and interest rates

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ISA allowances have reset and savers can begin to invest for the year ahead. In light of this, several financial companies are expected to launch new deals to help consumers through the months ahead and Paragon Bank is among the first to do so.

Today, Paragon Bank launched a new Limited Edition Easy Access ISA, which is paying a rate of 0.41 percent, in order to expand its range of competitive cash ISA options.

This new cash ISA, available from April 9, is offering a variable rate and is available to open and manage online.

Additionally, Paragon Bank is also launching a Limited Edition Easy Access account, which is a non-ISA product, at the same rate of 0.41 percent.

Savers will be able to make unlimited withdrawals from both accounts, with Paragon Bank highlighting it’s a “good choice for people who want the flexibility of accessing funds if they need to.”

Paragon Bank also highlighted the following: “The Limited Edition Easy Access ISA is also eligible for Paragon’s ISA Flexibility and ISA Wallet features.

“These features were launched last year to help savers make the most of their tax-free savings allowance.

“The ISA Wallet allows savers to spread their £20,000 annual ISA allowance with Paragon across multiple cash ISAs, rather than just open one specific account.

“Meanwhile, the Flexibility feature allows cash to be withdrawn and replaced from its access cash ISAs without savers using their tax-free entitlement and comes as an additional feature to Paragon’s current access cash ISA products.”

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Derek Sprawling, a Savings Director at Paragon Bank, commented on the new product launch: “We have launched our new Limited Edition Easy Access ISA at a best-buy rate in order to ensure that our product is the first one savers see when hunting for the best deal.

“We have a strong cash ISA proposition, which has been recognised by four industry awards in the last year alone.

“We want to be front-of-mind with people considering where to save their new ISA allowance.

“One of the benefits of our range is flexibility.

“Choosing one of our ‘ISA Wallet’ accounts gives savers the option to split their allowance across a number of our products, which is a great option for people wanting to use some of their ISA allowance as a ‘rainy day’ fund while locking the rest away in a fixed rate.

“We offer a broad range of saving products to suit all requirements that are straightforward to open and manage, and we will continue to look at ways we can innovate to offer great saving solutions for our customers.”

As it stands, there are four main types of ISAs available and the £20,000 yearly limit can be split across them.

This means savers can invest in cash, stocks and shares, innovative finance and Lifetime accounts for the year ahead.

ISAs can be opened with a number of financial institutions including banks, building societies and stock brokers.

Generally, money can be withdrawn from an ISA at any time without losing the tax benefits provided.

However, different providers may impose charges or restrictions on withdrawals and as such, savers will need to check the terms of their accounts.

Some ISAs may also be “flexible”, which means a person can take cash out and then put it back in during the same tax year without reducing their allowance and providers can tell savers if their ISA is flexible or not.

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