Paragon Bank

Who they are

Paragon was founded in 1985, beginning life as a specialist residential mortgage lender. In 2014, the Paragon Group of Companies launched Paragon Bank, offering a range of internet-based savings accounts alongside lending products. Three years later, it became Paragon Banking Group PLC as part of its transition into a fully integrated banking business. Today it is one of the UK's largest providers of buy-to-let mortgages and savings accounts, listed on the London Stock Exchange as a constituent of the FTSE 250 Index. The bank is based in Solihull and operates entirely online, with no branch network.

Savings accounts

At the moment, the one product we're tracking for Paragon Bank here on DepositScout is their Cash Lifetime ISA. It pays a variable rate and can be opened with as little as £1. Access to your money is restricted - you can only withdraw penalty-free when you reach age 60, or when buying your first home. That makes it a very specific tool: ideal if one of those two goals fits your plans, but not somewhere to put money you might need in a hurry.

One important thing to flag on FSCS protection: your deposits with Paragon Bank are protected up to £120,000 - but note that Paragon Bank shares its banking licence with Spring. If you already hold savings with Spring, the two balances count together toward that single £120,000 limit. The standard FSCS limit is £85,000 per person per banking licence, so the higher limit here reflects the Lifetime ISA bonus entitlement. Worth checking if you bank with both.

Paragon does offer other savings products beyond what we currently list - including fixed-rate bonds and easy access accounts - so check back as we add more to our comparison data.

Experience and service

Paragon is a UK-based bank offering competitive rates for savings and cash ISA accounts. Being online-only, everything from opening an account to moving money is done through their website or app. Customer reviews regularly describe a user-friendly app that is straightforward to use. One thing that stands out in customer feedback is their telephone support. Customers report that queries are answered almost immediately via the helpline, and find it refreshing to speak to a real human being rather than a chatbot. That said, some customers have encountered issues with ISA transfers, reporting delays or difficulties completing these transactions - something to bear in mind if you're planning an ISA transfer in.

Is it right for you?

Paragon suits savers who are comfortable banking online and want a bank with genuine substance behind it - a long track record, a listed parent company, and real humans available on the phone when you need them. The Cash Lifetime ISA is a strong fit if you're saving toward a first home or building a retirement pot you won't need before 60. It won't suit anyone who wants flexible, everyday access to their money.

There are currently no switching incentives or cash bonuses available through Paragon on DepositScout, so the decision comes down purely to the rate and the account type.

As always, the live rates on this page are the most up-to-date figures - worth a check before you decide.