We are often asked for more information on various savings providers that are less well-known or new to the savings market. In this regular series of articles, we aim to turn the spotlight on these providers to give you more information about their background and history and why they are of particular interest in today’s savings market.
Alongside these articles, you may also find our Guide to Challenger Banks useful for more information on some of the banks that are seeking to break the monopoly of the big high street names.
We hope that you find this information useful and as always, if you have any feedback or suggestions as to who should appear in a future article, please let us know.
The provider chosen this time is Paragon Bank, following a number of requests for more information and the recent prominence of the provider in our best buy tables.
Paragon Bank, whilst relatively new to the savings market is part of a well-established group of companies, based in the UK. The Paragon Group was founded in 1985 and is a FTSE 250 company, listed on the London Stock Exchange. The Group is well known as a specialist buy-to-let mortgage lender.
Paragon Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). In addition, Paragon is a member of the Financial Services Compensation Scheme (FSCS), so funds placed with the provider would be covered up to £85,000 per person (falling to £75,000 from January 2016) should the provider go out of business.
For more information on the FSCS, please take a look at our handy guide or call us on 0800 321 3581 to speak to one of our expert savings advisers.
Today’s Savings Market
Paragon Bank launched in February 2014 and has regularly appeared in our best buy tables since, particularly in the Fixed Rate Bond and Notice Account categories, as is commonplace with Challenger Banks.
The provider currently offers two market leading accounts, a 120 day notice account and a 2 year fixed rate bond, as well as 1 year, 3 year and 5 year fixed rate bonds that all appear in the top five for the respective terms.
So whilst the provider is most prominent in the notice and fixed rate bond sections of the savings market, in May this year, one of its easy access account appeared in the top five, showing that perhaps there are other areas of the savings market that Paragon Bank may compete in going forward.
If you would like further details on these accounts, please contact us on 0800 321 3581 to talk to one of our savings experts.
Application Process and Customer Service
All accounts from Paragon Bank must be applied for online, so this will not suit those who prefer not to use the internet. Our Concierge Department has used the provider on a number of occasions and have commented that the application process is easy to understand and have found the provider’s customer services to be good.
We certainly have not been made aware of many negative experiences so far from any of our clients or our Concierge Department. Of course, as mentioned earlier, your thoughts and experiences about providers’ customer service are invaluable for us, so please get in touch to share any feedback you have.
A final word…
It is a simple fact that many of the best rates on the market today can be found amongst providers that are less well-known or that some savers may not have even heard of. Well-known providers simply no longer offer rates that allow them to feature in our best buy tables, as much as they have in the past, so in order to earn as much interest as possible, savers will most likely need to look at an alternative to the high street.
As mentioned earlier, if there is a provider that you would like to see featured in a future article, please let us know. We are also keen to hear from you if you have any feedback about any provider’s customer service, good or bad! Please contact us at [email protected] to share your experiences.