Savers have been given a boost after Paragon Bank launched market-leading rates, including a two-year fixed account offering 2.05%.

Today's move means Paragon Bank's now market-leading for one, two and five-year savings. See our Top Savings Accounts guide for more.

It comes two weeks after app-based Atom Bank increased its fixed savings rates. Paragon's one, two and five-year accounts now beat Atom's, though its improved three-year offering still falls short of the best deal.

What new deals has Paragon launched?

Fixed savings accounts offer better returns than easy-access accounts, though the money saved in them cannot be accessed during the fixed term. Generally, the longer the fix, the higher the rate.

Here's a full rundown of what Paragon is offering:

  • One-year fix – 1.85% (next best, Atom at 1.8%)
  • Two-year fix – 2.05% (next best, OakNorth Bank at 2.01%)
  • Three-year fix – 2.1% (beaten by Atom and NS&I, both 2.2%)
  • Five-year fix – 2.45% (next best, United Bank UK at 2.41%)

See fixed savings accounts for full details on how the accounts compare.

With all four Paragon accounts, interest is paid annually or monthly. There's a £1,000 minimum deposit and you can save up to £100,000, though only the first £85,000 is protected under the Financial Services Compensation Scheme.

Martin Lewis
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