Cahoot cuts savings rate to 1.5%

poppy10_2

Honestly, what's the point in saving any more :mad:

CompletelyLost

I agree... don't know what I'll do once my Egg fixed rate saver is finished.

Inactive

Still showing at 2% on Cahoot Web Site ..?

poppy10_2

Inactive wrote: »

Still showing at 2% on Cahoot Web Site ..?

The changes take effect from 26th January.

Here's the email

Following the reduction in the Bank of England base rate by 0.50% on 8th January, we are changing the rates on your cahoot savings account. The following rates apply from 26th January 2009.

From 26th January, on your savings account ending ****, you can now earn a rate of up to 2.56% gross p.a./ 1.77% AER* on balances of £1million or more.

Details of all the rates by balance tiers are given below.
Thank you for saving with cahoot.

Yours sincerely

Harvey Griffith
Head of Customer Contact

The cahoot standard savings account rates. Please note that the tier of interest is applied to the total balance. The maximum investment amount is £2,000,000. Deposits of more than £2,000,000 will receive a variable rate of 1.50% gross p.a./AER annually and 1.49% gross p.a. (1.50% AER) monthly.

From 26th January 2009:
Annual interest
1.50% gross p.a./AER for credit balances from £1
1.55% gross p.a. / 1.51% AER for credit balances from £50,000***
1.60% gross p.a. / 1.53% AER for credit balances from £100,000***:rotfl:
1.76% gross p.a./ 1.57% AER for credit balances from £250,000 ***:rotfl::rotfl:
2.01% gross p.a./ 1.63% AER for credit balances from £500,000 ***:rotfl::rotfl::rotfl:
2.26% gross p.a./ 1.69% AER for credit balances from £750,000 ***:rotfl::rotfl::rotfl::rotfl:
2.56% gross p.a./ 1.77% AER for credit balances from £1,000,000 ***:rotfl::rotfl::rotfl::rotfl::rotfl:

sabretoothtigger

Soon it'll be like a deposit box, you pay them for keeping it safe. Might as well just buy gold/silver

In fact with inflation higher then the rate of return, thats already happening

cepheus

This is partly the point, lower interest rates stimulate spending in an attempt to bring the country out of the slump. It's savings interest rates relative to inflation which is more relevant anyway and this has been my big concern other the past year.

withnell

sabretoothtigger wrote: »

In fact with inflation higher then the rate of return, thats already happening

I thought that RPI was 0.9% in December....

gozomark

and could be -2% by the Autumn

sabretoothtigger

withnell wrote: »

I thought that RPI was 0.9% in December....

cpi was 3.1%

withnell

RPI has always been the measure of inflation in britain, until Gordon Brown decided to measure inflation based on CPI - with interest rates upping RPI, it makes it easier to keep a low inflation figure. Now that rates have shot down the situation is flipped on its head.

poppy10_2

Current account rate has also been cut, to 1.25%