Latest news with #ParagonBank
Yahoo
11 hours ago
- Business
- Yahoo
Paragon Bank supports UK SMEs with over $41m in funding
Paragon Bank has offered more than £31m ($41.8m) in funding to more than 200 small and medium-sized enterprises (SMEs) through the British Business Bank's Growth Guarantee Scheme (GGS). This initiative, part of the UK Government's broader support for British enterprise, has allowed Paragon to extend financial support to businesses across various sectors, including agriculture, construction, manufacturing and transport. Paragon said the scheme's impact has been 'significant', allowing it to facilitate business investments that would likely have been unfeasible without this support. The GGS offers unsecured loans and asset-based finance, with the volume of lending and the number of businesses supported growing daily. The scheme is set to run until March 2026, offering Paragon insights to inform future credit appetite and broaden its customer reach. Earlier this month, the government announced an additional £10.3bn in funding for the British Business Bank, including £500m in extra lending capacity for the GGS. Paragon continues to collaborate with the British Business Bank to allocate more GGS funding, supporting both existing and new customers. Paragon Bank's SME lending deputy managing director Phil Hughes said: 'The Growth Guarantee Scheme has been a powerful tool and resounding success in helping us extend more support to ambitious UK businesses who need it. 'We have already seen what a difference it can make in unlocking funding, especially for sectors vital to the economy and productivity, such as construction and agriculture, where upfront investment can be a major barrier. The early success and scale of demand speak volumes – and with the right backing, we are ready to do even more.' In the first half of its fiscal year, Paragon noted a 7.3% rise in new loans within its SME lending sector. For the six months ending 31 March 2025, the bank recorded £247m in SME lending loans, up from £230.2m in the same timeframe the previous year. Asset finance, a core element of the division, grew by 11.1% to £169.9m, outperforming the market average growth of 6.4%. "Paragon Bank supports UK SMEs with over $41m in funding" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mail
3 days ago
- Business
- Daily Mail
Millions of fixed-rate savings deals to mature within three months triggering a wave of tax bills
A large chunk of Britons could face a tax bill on their savings interest in the coming months, analysis shows. Some 1.2million fixed-rate bonds are set to mature between June and September 2025 containing £70.5billion, according to Paragon Bank. Seven in 10 accounts set to mature will generate enough interest to potentially incur a tax bill, the data suggests. Of the 1.2million accounts, almost all will generate interest of more than £500. This would breach the Personal Savings Allowance (PSA) of £500 for higher-rate taxpayers. Meanwhile 822,000 accounts will generate more than £1,000 in interest, resulting in a tax liability for basic-rate taxpayers who have a PSA of £1,000. Under the PSA, basic rate taxpayers can earn up to £1,000 in savings interest across all accounts held before they incur tax, with higher rate taxpayers able to earn up to £500. Additional rate taxpayers don't have a PSA and pay tax on all savings interest outside an Isa. The figures are from an analysis of CACI data which is pulled from over 40 savings providers. Fixed-rate savings accounts surged in popularity in the second half of 2023 and into 2024 as savers took advantage of high fixed-rate savings accounts offering rates as high as 6.2 per cent in September 2023. Derek Sprawling, head of savings at Paragon Bank said: 'Fixed-rate savings dominated the market during 2023 and 2024, with many accounts benefitting from high savings rates.' Many of these one-year accounts will be maturing over the next six months, so savers could face a savings tax bill on the interest. The best way for savers who want to shield their savings from a savings tax bill is by keeping it in an Isa, a type of tax wrapper where any interest earned is completely tax free. For this reason, Sprawling said: 'I urge savers review their accounts and make the most of their tax-free allowance by utilising other savings products, including cash Isas.' The best cash Isas currently offer rates north of 5 per cent which is higher than the best one-year fixed rate bond which pays 4.45 per cent. How will I know if I need to pay tax on savings interest? Banks, building societies and NS&I report your taxable interest directly to HMRC each year. When HMRC receives this information, it checks if you've gone over your PSA. If you have, any tax due will usually be collected via a change to your tax code in the following year – assuming you're employmed and part of the PAYE scheme. If you are not employed, you may need to fill in a Self Assessment return and pay the tax due. So, keep track of how much interest you are earning and estimate your overall likely tax rate. If the interest you earn on savings is over £10,000 you need to complete a Self-Assessment tax return.
Daily Mirror
4 days ago
- Business
- Daily Mirror
Nearly 1.2 million savers warned they could face unexpected tax bill
If you are basic-rate (20%) taxpayer then you can earn up to £1,000 in savings interest each tax year before you start to pay tax on interest you've earned Nearly 1.2 million savers risk being hit with a tax bill when their accounts mature this year. If you are basic-rate (20%) taxpayer then you can earn up to £1,000 in savings interest each tax year before you start to pay tax on interest you've earned. This is known as the Personal Savings Allowance. For higher-rate (40%) taxpayers, the Personal Savings Allowance is £500 every tax year. Additional rate taxpayers (45%) don't get any Personal Savings Allowance. If you earn below the personal allowance of £12,570, there is a £5,000 starting rate for savings. When you start to earn above this amount, you lose £1 of your £5,000 starting rate for savings for each £1 you earn above the personal allowance. This means once you start to earn above £17,570, your £5,000 starting rate for savings is effectively wiped out. More people have been pushed over their Personal Savings Allowance due to huge improvements in savings rates over the past few years. If you are worried about breaching your allowance, you can put up to £20,000 a year into an ISA savings account and any interest earned is tax-free. You will also want to make sure that any account you choose gives you the best interest rate for your money. Paragon Bank has analysed the number of savings accounts that will reach the end of their one year fixed-term between June and the end of the year. It estimates there are 1.17 million one-year fixed-term adult non-ISA accounts maturing during the period that will generate interest of more than £500, which would breach the Personal Savings Allowance for higher-rate taxpayers. Of those accounts, 822,000 will accrue more than £1,000 in interest, which is the Personal Savings Allowance for basic-rate (20%) taxpayers. In total, 1.7 million one year fixed-term adult non-ISA savings accounts are due to mature between June and the end of December, with a value of £70.5billion. Paragon Bank Head of Savings, Andrew Wright, said: 'Fixed-rate savings dominated the market during 2023 and 2024, with many accounts benefitting from high savings rates. 'Many savers will have had a great return on their savings but could ultimately breach their personal tax allowance as a result.' He added: 'Many of those one-year accounts are now maturing over the next six months and nearly 1.2 million people could potentially receive a tax bill. 'Therefore, I urge savers review their accounts and make the most of their tax-free allowance by utilising other savings products, including cash ISAs.'
Yahoo
11-06-2025
- Business
- Yahoo
Paragon Bank launches new savings app
Paragon Bank has introduced a new savings application named Spring, developed in collaboration with Moneyhub. This app aims to enhance the savings experience for consumers in the UK by addressing the prevalent issue of "current account coasting," where approximately 29 million adults maintain funds in low or no-interest accounts, according to Paragon Bank. Spring offers a competitive interest rate of 4.30% AER, which is said to be higher than the rates typically provided by major banks, and does not require users to change their current account provider. The application integrates with users' existing current accounts through Moneyhub's Open Banking technology, allowing customers to manage their finances more effectively. Users can view their current account balances within the Spring app and transfer funds seamlessly between accounts. The app also includes features such as savings pots and unlimited withdrawals, all without any hidden fees or restrictions. Paragon Digital Proposition head Guy Simmonds said: 'The journeys are superb in their simplicity, and we believe they are best in class, particularly with the app-to-app redirects. 'This partnership with Moneyhub is a key element of our digitalisation strategy, and we are excited to see how it will catalyse further change across our organisation.' Moneyhub plays a crucial role in this initiative by supplying the necessary connectivity and payment technology. This partnership facilitates a secure user experience, encouraging deposits through Open Banking payments, including Single Immediate Payments and Variable Recurring Payments (VRPs) to automate savings. Moneyhub CCO Dan Scholey said: 'We are delighted to partner with Paragon Bank to support the launch of Spring. Our collaboration showcases the importance of breaking down barriers to enable consumers to connect with their money effortlessly. 'This is just the beginning of our journey together, and we look forward to exploring more innovative solutions that deliver outstanding outcomes for customers.' In 2023, Standard Life teamed up with Moneyhub to create a pensions dashboard for its four million customers, allowing them to access both known and forgotten State, Workplace, and Personal Pensions. "Paragon Bank launches new savings app" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
10-06-2025
- Business
- Finextra
Paragon Bank launches savings app with Moneyhub
Paragon Bank has partnered with Moneyhub to support the launch of Spring, Paragon's groundbreaking savings app designed to transform the way UK consumers make more from their savings. 0 This collaboration leverages Moneyhub's leading data and insights platform to provide seamless Account Information Services (AIS) and Payment Initiation Services (PIS), enhancing the app's capabilities and user experience. Spring, launched by Paragon Bank, aims to address the issue of 'current account coasting', where over 29 million UK adults leave their money in low or zero-interest accounts, missing out on billions in potential interest. As well as integrating directly with users' current accounts, Spring offers a competitive interest rate of 4.30% AER, significantly higher than typical rates available from Big 6 banks, without the need to switch current account provider. Innovative Features and Seamless Integration Spring uses Moneyhub's Open Banking technology, allowing it to connect effortlessly with a customer's existing current account. This integration enables customers to view their current account balance in the Spring app and seamlessly move money between accounts, providing users with full control over their savings. The app also offers features such as savings pots and unlimited withdrawals, all without hidden fees or restrictions. Moneyhub's role in this partnership is pivotal. By providing the connectivity and payments technology, Moneyhub ensures the most secure, effective and efficient user journey. The app encourages deposits through Open Banking payments, offering Single Immediate Payments and Variable Recurring Payments (VRPs) to automate savings and further reduce friction. A Partnership Built on Innovation and Trust The partnership between Paragon Bank and Moneyhub is founded on a mutual commitment to needs-driven, customer-centric solutions. Moneyhub was chosen for its breadth of connections, extensive experience, and the cutting-edge innovation that underpins its services. By guiding Paragon Bank in setting up APIs, Moneyhub has ensured that Spring offers a slick and seamless customer journey, significantly reducing friction and encouraging users to engage with their savings more effectively. Moneyhub's collaborative approach has been instrumental in creating a user-friendly experience that aligns with Paragon Bank's goal of making saving simple and rewarding. This partnership has proven to be highly effective, marking the beginning of a journey focused on long-term vision and data utilisation to enhance financial outcomes for Paragon's customers. Dan Scholey, CCO at Moneyhub, states: 'We are delighted to partner with Paragon Bank to support the launch of Spring. Our collaboration showcases the importance of breaking down barriers to enable consumers to connect with their money effortlessly. This is just the beginning of our journey together, and we look forward to exploring more innovative solutions that deliver outstanding outcomes for customers.' Guy Simmonds, Head of Digital Proposition at Paragon, comments: 'The journeys are superb in their simplicity, and we believe they are best in class, particularly with the app-to-app redirects. This partnership with Moneyhub is a key element of our digitalisation strategy, and we are excited to see how it will catalyse further change across our organisation.' By leveraging Moneyhub's expertise, Paragon Bank is poised to deliver a superior savings experience that not only meets but exceeds customer expectations, setting a new standard in the financial services industry.
