What actually are Cahoot saying to me?

Onawingandaprayer

I have a Cahoot 2 year bond (issue 1) maturity account. It's fixed at 4.01% till 1st October 2013.

I've just received the following email, which seems to suggest it's going down to 0.5% from 1st May, even though it's fixed.

Before I get stuck into them, have I misread it? Anyone else had one yet?

We are writing with important information about your cahoot savings account(s). As you hold one of the following accounts:
cahoot instant access savings account
cahoot introductory rate account
cahoot bonus savings account
cahoot 2 year bond (issue 1) maturity account
from 1 May 2013, your account will be renamed a 'cahoot savings account' and will receive a variable interest rate based upon the amount of money held in your account, as indicated in the table below:

Rates for interest paid annually (rates are variable)
account balance Gross p.a./ AER*
£1 plus 0.50%
£250,000 plus 1.00%
£750,000 plus 2.00%

Rates for interest paid monthly (rates are variable)
account balance Gross rate p.a. Gross AER*
£1 plus 0.50% 0.50%
£250,000 plus 1.00% 1.00%
£750,000 plus 1.98% 2.00%

vulcan59

It's not very clear but it does say "maturity account" so I suspect it is the account which your bond will get transferred to at maturity. What do the terms and conditions say will happen at maturity?

Onawingandaprayer

T & C say that on maturity (Oct 1st 2013) it can be transferred to an external account of my choosing or into Cahoot's instant saver.

It seems clear to me that the 2 year Fixed Rate Bond should not have been included in the list in their email.

Have contacted them and will post their answer - assuming I get one!

Onawingandaprayer

Reply received.

Thank you for contacting cahoot in Coventry.

I am sorry but you have received this email in error. I can confirm your a/c ending *** is a 2 year bond with a rate of 4.01% fixed until the bond matures on 01/10/13.

Please accept our aplolgies for any confusion this has caused you.