Cahoot savings rate reduction

lisyloo

I caluclate that the interest on your interest for 8 days is about £1.97.
Hardly a fortune.

I'm not saying this is right, but the pragmatist in me says that you should just accept this and spend your time trying to save more than £1.97 elsewhere.

Alternatively if you are really incensed then you coud try their complaints procedure and try taking them to the ombudsman, however I have a feeling that this might fall within "acceptable" limits.

Sorry, but I think you are going to have to accept it.

Try spending the time constructively.
I'm sure you could save that £1.97 elsewhere if you spent the time productively.

derrick

lisyloo wrote:

I caluclate that the interest on your interest for 8 days is about £1.97.
Hardly a fortune.

I'm not saying this is right, but the pragmatist in me says that you should just accept this and spend your time trying to save more than £1.97 elsewhere.

Alternatively if you are really incensed then you coud try their complaints procedure and try taking them to the ombudsman, however I have a feeling that this might fall within "acceptable" limits.

Sorry, but I think you are going to have to accept it.

Try spending the time constructively.
I'm sure you could save that £1.97 elsewhere if you spent the time productively.

I do not know where you get the 8 days from, the account was closed on the 27th April, I received the cheque today,12 days, at least 4 days to deposit cheque and clear before interest is payed,= 16 days @ 4.5% = £3.55.
However I was originally told it would be 14 working days before the cheque would be sent,that would involve 2 weekends making 18 days,2 days for the cheque to reach me,plus the same 4 days to deposit and start earning interest = 22 days at least, (more if it hits 3 weekends) therefore 22 days @ 4.5% = £4.88.

Not withstanding the amounts being right or wrong it is the fact that I do not know of any other bank/BS that does this, when you close an account the interest should be added to the capital and sent with it, I was even told that as it is an internet acc this is how they work, if that is the case why send a cheque through the post?

It is not just about the monetary value it is the fact that this bunch of money grubbers are doing this to everbody and making a fortune out of the interest they hold on to, probably illegally

lisyloo

Why not follow the complaints procedure and then take them to the Ombudsman if you get no satisfaction?

It will cost them about £350 if you take them to the ombudsman plus all the man power to deal with your complaint.
You might get a certain amount of satisfaction from it but if you win you might also be able to help a lot of other people.

Unfortunately I have no idea whether this activity would be judged "acceptable" or not in the eyes of the ombudsman.
So you would in effect be a "test case".

However whether you win or lose it will still cost Cahoot a few hundred, so maybe that will give you some satisfaction even if you don't win.

derrick

As you said in your previous post "Try spending the time constructively."
Well I have better things to do and the monetary value is not worth the hastle, so I will just not bother using this cowboy company again

lisyloo

the monetary value is not worth the hastle

Obviously it's entirely your choice but as you said it's not just the monetary value. If you win a case you could change their procedures for everyone in the future.

However I am a pragmatist, so I would probably do what you are doing.

You need to factor in this kind of hassle and cost when switching accounts (unfortunately but dealing in reality).

Zwicky

derrick wrote:

It is not just about the monetary value it is the fact that this bunch of money grubbers are doing this to everbody and making a fortune out of the interest they hold on to, probably illegally

Derrick, I think you need to get things in proportion. OK I know this is going to be controversial but here goes!

The interest on this account is paid annually, ie it is normally paid on the twelve month anniversary of the opening of the account. They are not doing anything "illegally" in making us wait a few days and as far as I can see there would be nothing to stop Cahoot from telling you that you will have to wait until that anniversary date for the payment of your outstanding interest. Just because you have closed the account you do not acquire an automatic right for immediate payment.

Perhaps more importantly let's not forget that Cahoot paid a very competitive rate of interest on their "introductory" savings account for far longer than they were obliged to and many of us enjoyed the benefits for an extended period of time.

Cahoot like all the other banks/Building Societies are in business to make money and as banks go Cahoot has not been bad. Making us wait a few days for our final interest payment on an annual interest account where we have had a good run for our money does not seem so bad to me so to call them "money grubbers" because of this is really rather silly.

Banks and Building Societies will always be finding new ways to extract a little more money from us and we will continue to put our money where ever we can get the best deal regardless of how good (or otherwise!) our current provider might have been to us in the past. Part of the fun in what we do is identifying and taking advantage of opportunities and making sure that we read the small print to spot the inevitable downsides of every offer!

Perhaps it might be better to stop complaining about Cahoot and accept the reality of the market we operate in.

Tin hat now on!

derrick

Yes I know it is an account that is paid interest annually, but when the account is closed that becomes academic

Most accounts are paid annually, you can get monthly ones, I have never yet known a bank/BS that when an account is closed holds on to the interest it is always added to the capital and paid as one sum, this is not a fixed term account and therefore the interest should be pad in full on closure,I was told it was an internet account and that is the way it happens,(only with this bunch),I was then informed that the cheque would be sent by post? hardly internet. I paid for a CHAPS payment and rather than them take the £25 from the interest,they took it from the capital.
The money in these accounts belongs to the depositor, therefore when closing the account the money should be returned in full including the interest, ( they do not even pay interest on the money they are withholding from you)

Seems to me that you work for one of these money grubbing companies and that is why you fly to their defence when someone makes a valid point.

Snapelover

derrick wrote:

Closed the account 27th April, received interest cheque today,5th May, capital was transfered 27th April via CHAPS, they would not add the interest to the capital

You are doing better than me as I closed my account and received confirmation of the closure of the account from Cahoot on the 27th April and I have not received anything yet.:mad:

lisyloo

I have never yet known a bank/BS that when an account is closed holds on to the interest

Just because you haven't come across it before doesn't mean it's wrong or illegal.

this is not a fixed term account and therefore the interest should be pad in full on closure

says who?
can you quote some laws? terms & conditions numbers?
or is this just what you want?

I paid for a CHAPS payment and rather than them take the £25 from the interest,they took it from the capital.

Do you have something in writing to the contrary?

therefore when closing the account the money should be returned in full including the interest

And they DID DO THIS (albeit a few days after you would have liked).

Seems to me that you work for one of these money grubbing companies and that is why you fly to their defence when someone makes a valid point.

I don't work for a bank but it seems to me that you want to take advantage oof great offers but expect everything to be done YOUR way.
You have not so far provided a single shread of evidence to prove that Cahoot are wrong (no Ts&Cs quoted, no laws or guidelines quoted).
It simply hasn't been done as you want and now you are throwing your toys out of the pram.
.....but of course can't be bothered to pursue it.

You are either bothered or you are not.
If you are bothered the PURSUE IT.
If you aren't bothered then have a look round the local supermarket for a few reduced items and recoup your rather insignificant losses.

Heybigsaver_3

No probs at mo with ICKY good comms & monthly payout .. considering pulling out of cahoot 100%