Cahoot savings rate reduction

keithfos

I had the same problem with Cahoot so I thought I'd open up a First Direct account. When the paperwork arrived from First Direct the interest rate had dropped from 5% to 4.75%. I also have a Bradford & Bingley account which curently pays 4.85% so I guess the Cahoot money can go there. Again pondering when to move it so the discussions have been quite useful.

Snapelover

PoorPaul wrote:

As the rate drops on the 28th, have you arranged it for the 24th to ensure it doesn't lose out by another couple of days transferring over the weekend ? Doubtful my test £10 will have completed by Monday - will it be 'safe' to transfer the rest or should I wait it out ?

Just making sure I get this right !!!!!

As stated in my post No. 68 - I was just going off what alared said.

PoorPaul

Snapelover wrote:

As stated in my post No. 68 - I was just going off what alared said.

I'd decided to do the same and arranged for a Cahoot -> BM transfer today.

Hopefully it'll reach BM by Friday and avoid the Bank Holiday weekend.

Snapelover

PoorPaul wrote:

I'd decided to do the same and arranged for a Cahoot -> BM transfer today.

Hopefully it'll reach BM by Friday and avoid the Bank Holiday weekend.

That's great!:j

Zwicky

Snapelover wrote:

Yes but what we are saying is if we transfer all our monies now before our interest anniversary date we can have the interest paid straight away but it will be in the form of a cheque - whereas if we leave the account open but with £1 or, as someone has suggested, £0 in it, come the interest anniversary date the interest will be added directly into the account - therefore less time will be wasted moving it from one account to another hence less interest lost.

I must be missing something here because I can't see what you gain by this. If your interest is payable anually there is no interest payable on the interest so by leaving it in the account you gain nothing. If you close the account, even if it takes a while to receive the interest payment you are not losing any interest and as you will get the payment sooner than if you wait until the anniversary you can put it elsewhere and earn interest.

Like I said, I must be missing something because you seem to be agreed on this point so I would appreciate help in understanding.

Has anybody noticed that when you log out of Cahoot it now says:

Before you go, here’s some great offers:

The "great offers" include "Sky High Savings" and quote the 4.85%!!!

Talk about adding insult to injury!

alared

Hi everyone,been away for a few days so trying to catch up.
I arranged a transfer for yesterday 24th for everything out except for £1, and checking today I see that this has been done by Cahoot.
I`m expecting to see it arrive in my nominated account on Thurs 27th, and I know that they do pay interest from the first day they receive it.
Result, I`ve lost three days interest!!!

Looking at the post by Zwicky,I must say that what he is saying and what Snapelover has done seems to be the correct course:


"I must be missing something here because I can't see what you gain by this. If your interest is payable anually there is no interest payable on the interest so by leaving it in the account you gain nothing. If you close the account, even if it takes a while to receive the interest payment you are not losing any interest and as you will get the payment sooner than if you wait until the anniversary you can put it elsewhere and earn interest."


I was just going to let the account lie with £1 and wait for the interest to be added in July and then close it,but as he says,no matter how long the interest cheque takes to come,I would be better to close now and when the cheque does arrive at least that money will start earning interest elsewhere.
By waiting `til July I will in effect be losing interest on the interest.
Hope this does not sound too complicated.

Patr100

Am I also missing something here but surely if you close the account you still get interest added and paid up to that point, regardless of whether it's normally paid monthly or yearly . It still acrues daily and the sooner you take it out the sooner you can move it to another account.
-

alared

Most if not all accounts (except Cahoot it seems )when you close them, the interest is added there and then and that`s the end of the matter.
The only reason Cahoot does it different is the usual one

---

GREED.
I went to their site today and took the last £1 out and then closed the account.
It asked if I was sure I wanted to close and I clicked yes.
It then said I would be contacted within 3 days.(why?)
So the question is--- how long do I wait from closing the account today until I receive the cheque for the interest?
When I finally do receive it,it then takes a further four WORKING days to clear.
In the meantime Cahoot have got my money and are keeping the interest they are making on it for themselves.

mary

Where does it say when the interest is added?

[Deleted User]

I requested closure yesterday (24/4). Today I have received the following nonsensical response - highlighting is mine.

'Thank you for contacting cahoot.

We've got your request to close your savings account. To avoid any problems with your direct debit it can take up to 30 days for the closure to be completed. Don't cancel your direct debit, as we'll do this for you.

We'll send you a letter once the loan's been closed.

If you require any further assistance please do not hesitate to contact us again.'

Kind regards,

Imran Noor,
cahoot

I despair.