Paragon Bank has announced that it has raised interest rates on 10 accounts, as rates continue to rise across the banking sector.

The announcement comes as the Bank of England (BoE) yesterday raised its base rate to 5% in an attempt to tackle the current rate of inflation.

Interest rates have increased from 0.5% to 5% in 16 months, with the latest rise being the thirteenth consecutive increase in interest rates by the BoE.

A range of fixed rate accounts have been included in Paragon’s rise in interest rates, including the one-year fixed rate and 18 months fixed rate accounts, which rose from 4.95% to 5.4%. The two-year fixed rate rose to 5.45% from 4.95%, with the green three-year fixed rate and five-year fixed rate increasing to 4.85% respectively.

The bank also launched a new three-year fixed rate account, which has an interest rate of 5.3%.

The three-year and five-year fixed rate ISAs’ interest rates at Paragon were increased to 4.75% and 4.65% respectively, from 4.35% and 4%.

The announcement by the bank also highlighted the 120-day notice account, which is paying 4.6% AER, up from 4%, which Paragon describe as an option for savers looking to balance a dynamic outlook for future rates. The 180-day notice account was also raised to 4.65% from 4.05%.

Paragon Bank’s savings director, Derek Sprawling, said: “Savers have been increasingly moving their money into fixed rate and notice accounts since the turn of the year and we believe these rates will provide an attractive option to those who are prepared to lock their savings away for a period of time.”

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