Cahoot savings rate reduction

FL

Snapelover wrote:

Thanks for that Zwicky - just opened my account and have been accepted. Once I'm up and running that will be another customer that Cahoot has lost as I will be closing my account too.

It's a cruel world.:D

Interest rate appears to be 4.95% from the 12th April so I think I will go for this one as I do not fancy First Direct.

MiserlyMartin

alared wrote:

Snapelover
After thinking about this,I might just let the account run to the anniversary date (24th July in my case) when the interest is added and then transfer and close the account.
At least that way I`ll have all my capital and interest together.

An idea but if you have another better paying account already open in which to transfer the money it would be better to move the money now (leaving a token £1) to gain the advantage of a better rate elsewhere. Don't close it until you get the interest added, firstly transferring it before closure.

If you just close it before the interest has been added I can imagine several days loss of interest while waiting for the cheque to be processed and time in the postal system, not to mention clearing time at your bank!

I'm going to move the funds on Monday so it gets a bank holiday free run and it will end up in my nationwide flexaccount which actually pays 4.25% (not much below cahoot!) and then it will end up at ICICI which already just beats Cahoots temporary 5%.

Snapelover

MiserlyMartin wrote:

I'm going to move the funds on Monday so it gets a bank holiday free run and it will end up in my nationwide flexaccount which actually pays 4.25% (not much below cahoot!) and then it will end up at ICICI which already just beats Cahoots temporary 5%.

Do you plan to leave £1 in and close the account after you have transferred the £1 plus your interest paid on its anniversary date? Is that the best option in your opinion?

alared

I`m going to follow MiserlyMartin`s advice and transfer all but £1, and then when the interest`s added, transfer everything that`s left in it and close it after that.


Update
Well I just did it!
Went to Cahoot set up to withdraw all but £1 on Monday 24th April to M.Harborough B/S,should take four days.

Thanks to MiserlyMartin and Snapelover

Snapelover

alared wrote:

I`m going to follow MiserlyMartin`s advice and transfer all but £1, and then when the interest`s added, transfer everything that`s left in it and close it after that.

Unfortunately I have to wait until I get details of the account I have just opened at Birmingham Midshires. But when it's all set up I will do the sme as you then when I get my interest I'm going to use it towards my mortgage.

zzzLazyDaisy

Just in case you haven't checked the other threads - Coventry BS has just opened a combined current account / saver paying 5.1%

alared

zzzLazyDaisy wrote:

Just in case you haven't checked the other threads - Coventry BS has just opened a combined current account / saver paying 5.1%

Thanks for that.
Without looking at the T&C in great detail,you have to pay in at least £1,000 a month to get that rate.
(do you get it on the full balance or partial ---- would need to study small print)

Don`t really need ANOTHER current account (with Halifax)similar terms but not as high rate (don`t keep a lot in current anyway)

Then as soon as you`ve got everything sorted and Coventry get enough customers in ,they chop the rates!!!

Anon

alared wrote:

Thanks for that.
Without looking at the T&C in great detail,you have to pay in at least £1,000 a month to get that rate.
(do you get it on the full balance or partial ---- would need to study small print)

Don`t really need ANOTHER current account (with Halifax)similar terms but not as high rate (don`t keep a lot in current anyway)

Then as soon as you`ve got everything sorted and Coventry get enough customers in ,they chop the rates!!!

Looking at the rate, it includes a 0.85% bonus for the first year and is guaranteed to be at least 0.6% above base rate AER for 1 year. The rate is 5.1% on total balance.

The benefit of this is that it is one account - therefore you are earning the interest on the full balance of your account (up to £250,000) as soon as it hits your account rather than (if you are like me) moving money about from current to savings but leaving enough to cover direct debits etc which is then not getting as good a rate of interest.

Anon

Snapelover

zzzLazyDaisy wrote:

Just in case you haven't checked the other threads - Coventry BS has just opened a combined current account / saver paying 5.1%

I cannot always put in £1000 per month. Dark days in the north east!!

Anon

Snapelover wrote:

I cannot always put in £1000 per month. Dark days in the north east!!

It doesn't have to stay there but obviously it depends on your circumstances - if you transfer your current account to them then your income may well be over the threshold.

Anon