Cahoot Bonus Savings Account Limits

Stompa

The Cahoot Bonus Savings Account pays:

5.25% gross p.a. / 4.93% A.E.R. (including bonuses) for balances £15,000 - £100,000.

Does anybody know what happens if accumulated monthly interest causes the balance to exceed £100,000?

Thanks

Stompa

Stonk

Stompa wrote:

Does anybody know what happens if accumulated monthly interest causes the balance to exceed £100,000?

If I recall correctly from when I was looking at this account not long ago, it is not addressed in the T&C's. They say there's a maximum investment of £100,000 - hence the interest rates being quoted only up to this figure, and presumably they would reject a deposit that took your balance over the limit, but as you say it could also be exceeded by them adding interest.

Watch out, they may do what A&L's Online Saver does - 0% interest on any excess balance.

It's worth calling them to clarify, if it might affect you. Speaking for myself, it didn't matter because I keep my balances below the amount guaranteed by the FSCS scheme, and wouldn't put £100K with a single institution. I find there are enough decent-but-not-quite-table-topping rates out there to spread the money among. You get very slightly sub-optimal interest, which is effectively the premium you pay for being insured against your bank going bust.

Stompa

It's worth calling them to clarify

I was hoping to avoid that, they tend to keep you on hold for a long time IME.

Stompa

YorkshireBoy

Stompa wrote:

I was hoping to avoid that, they tend to keep you on hold for a long time IME.

"If you're already a cahoot customer, please log in to your account, then go to either 'any questions?' or 'contact us' through your secure personal home page."

http://www.cahoot.co.uk/contact_us/contact_us.html

If you're not a Cahoot customer yet, you can e-mail them with a general enquiry from the above page.

Stompa

I should have added that they're not great at responding to messages sent via the contact_us link either.

Stompa

YorkshireBoy

Stompa wrote:

I should have added that they're not great at responding to messages sent via the contact_us link either.

I suppose you'll have to decide if the additional annual interest of £180/144/108 (depending on your tax situation) on your £100K is worth giving up for better customer service, and a consistent rate, with a provider like ING Direct.

Stompa

In case anybody else is interested I just got the following response from Cahoot:

"If interest causes the account balance to exceed £100,000 then that is permissible and the rate won't change.

Only if additional transfers into the account tip the balance to £100,000 + will the rate drop to 3.93% AER."

Stompa