Cahoot savings rate reduction

PoorPaul

If I opened one of the Birmingham Midshires accounts at 4.9%, can I move money directly into this from Cahoot without going through my bank account first?

If so, and I did this on the day the Cahoot rate drops to 4.55% and it takes 3 days as mentioned previously, how long will it take to recoup the interest lost during transfer ?

Can anyone help / advise ?

alared

From what I can gather (and please correct me if I`m wrong)when closing a Cahoot account,you first have to transfer the entire balance to another account and only then are you allowed to close it.
The interest that is owed is then sent to you by cheque.
Anyone know different?

Snapelover

alared wrote:

From what I can gather (and please correct me if I`m wrong)when closing a Cahoot account,you first have to transfer the entire balance to another account and only then are you allowed to close it.
The interest that is owed is then sent to you by cheque.
Anyone know different?

Not sure but what I plan to do is to contact Cahoot to inform them that I wish to transfer all of what's in the account to my new account and that I plan to then close the account. Maybe they will then transfer all my savings plis interest earned in one fell swoop.

alared

I think I might play them at their own game.
I`ll clear everything out of the account next week and just leave it until the day they pay the interest (in my case 24th July)and then clear the interest out and then close the account.
If there`s a few pence to be paid to me,let them do that by cheque.
In the meantime they still have to pay 4.55% on the interest for the next three months.
Which is only .20% less (before tax)than I will be getting from Market Harborough B/S

KTF

From what I can see the First Direct Account @ 5% looks the best. Can anyone beat this?

http://www.firstdirect.com/saveinvest/esavings.shtml

ReportInvestor

Yes. The only problem is that there is no interest paid in the month you close the account.

OK as long as you close it on the 1st or 2nd day , I assume.

A pretty daft and clearly unfair rule that discriminates between customers - especially against those not in the know / not on MSE.

Stompa

KTF wrote:

From what I can see the First Direct Account @ 5% looks the best. Can anyone beat this?

The big drawback of that account is the:

"instant access to your money* (although no interest is paid on the full account balance in any month you make a withdrawal)"

Stompa

alared

The only drawback seems to be this:

"instant access to your money* (although no interest is paid on the full account balance in any month you make a withdrawal)"

They may be due to cut rates as well.

ReportInvestor

Snap :rotfl:.

I agree with alared's assessment that FD are due a cut.

It's slightly odd that fixed rates have inched up over the last two months but the top variable rates have not fared so well.

dang

"From what I can see the First Direct Account @ 5% looks the best. Can anyone beat this?"

For rates alone this one seems to beat them all -

http://www.icicibank.co.uk/index.html

They are offering 5.15%.

However i dont know what the service is like,ive just applied to open my account today.