Cahoot rate rise and new bands.

Rhino666

I have just received an email from Cahoot outlining an increase in their interest rate on my savings account by 0.25% to 5.5% on 21st May. This is probably of no real interest as the rate is no longer competitive but.......

From 21 May 2007 they will be paying savings rates of 6.05% AER on balances from £250,000*** and 6.15% AER on balances of £500,000*** or more. These variable rates will last until 1st Decdember 2008.

If you have such a large lump sum, this is worth considering as it looks like Cahoot intend to track interest rates and 18 months of relaxation with access to your money if you need it is tempting - £250K start does preclude most people though - could have lowered the starting requirement just a bit :-(

GCH888

Hmmm ... ICICI offer 6.05% AER as well for those of us who don't happen to have £250,000 cash lying around behind the sofa.

Rhino666

That is correct but operating a cahoot account is considerably easier:-)

IGK

... and if I had £250k in one account I'd certainly sleep better at night if it was with Cahoot than ICICI

thor

If I had 200K I would feel even safer if I did not keep it all in one account.

Rhino666

thor wrote: »

If I had 200K I would feel even safer if I did not keep it all in one account.

I imagine that most lucky people with £250k in a building society account have got better things to do than post on this forum :-)

On a serious note though, the standard protection with banks is limited to quite a low figure, around 30K IIRC. To chase 8 or 9 high interest bearing accounts around would be an almost full time job :-)

Anon

They also offer 6.15% if you have over £500,000 (!) - cheekily (if you ask me) this is the rate that you face when you go to the website as "Up to 6.15%" - it is only when you look at the * that you see the lower rates quoted above - therefore I suspect that most people will be getting 5.5%.

They have no doubt covered themselves with advertising legislation, but I think that this is still not good practice as it is no doubt designed to trick people (if people have £500,000 no doubt there are better homes for your money and these people would not be looking at cahoot anyway!).

Anon

Rhino666

I think that those rates are good for a temporaily invested lump sum. Say for example you have sold a property, are in rented accommodation, awaiting the purchase of next property and want instant access to funds.

Do agree about Cahoot's ability to be underhand though. I had lots of money in their top paying, non cheque book current account a few years back and took my eye off the ball. They introduced the new savings account, demoted my account and I lost at least 1% interest effectively. A combination of different priorities at the time and the fact that I had ticked the no marketing box with Cahoot could be blamed.......

.......The fact that they acted like sly dogs has nothing whatsoever to do with it of course :-)