Paragon Bank has increased the rate on its three-year fixed rate savings account to 2.37% AER.
The product is only available online and eligible deposits are protected by the Financial Services Compensation Scheme up to a maximum of £85,000.
The announcement comes after Paragon revealed last month that it had reached £5bn in deposits.
The specialist bank reached the milestone four years after launching its first savings product.
Paragon uses deposits to support small businesses and entrepreneurs across the UK, including asset finance loans and property development loans.
“Paragon Bank is once again offering a competitive alternative to savers looking to consider a new provider,” said Richard Doe, managing director at Paragon Bank (pictured above).
“Our rate increase will help our customers to save for their future.”
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