Paragon racks up £6bn of savings deposits in five years

By Roger Baird on Friday 16 August 2019

Digital Banking

The Solihull-based specialist lender said it reinvests savings into small business loans.

Paragon racks up £6bn of savings deposits in five years
Image source: Burst from Pexels

Specialist lender Paragon Bank has notched up £6bn in deposits five years after launching its first savings accounts.

The FTSE 250 group said it has amassed 210,000 of these accounts since first opening these types of accounts in 2014. It adds that 78 per cent of customers choose to invest again with the business once their accounts have matured.

The bank currently offers a range of fixed-rate, easy access, notice accounts and cash ISAs with annual interest payments that range from up to 1.25 per cent to 2.25 per cent.

The Solihull-based lender said it reinvests customer deposits back into the UK economy, supporting small businesses and entrepreneurs through everything from asset finance loans to property development finance in a bid to address the country's housing shortage.

 

Small business loans

Paragon managing director Richard Doe said: “It is extremely important to us that we build on our reputation as a specialist bank that cares about its customers. We’re funding a wide variety of businesses and play a part in supporting Britain’s economy.”

The business lending side of the bank also offers structured loans, motor finance and buy-to-let mortgages.

Paragon, founded in 1985, has more than £12bn of assets under management, manages over 450,000 customer accounts and has a stock market valuation of £1bn.

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.