Cahoot 5.5%

Elman_2

According to today's Daily Express (no I don't actually read it, i get press cuts at work), Cahoot will tomorrow be launching a new instant access savings account at 5.5% (guaranteed to be at least 5.5% for 12 months). 5.5.% will apply up to £50k, 5% on the next £200k and 4.5% after that. No limits on deposits and withdrawals.

Likely to be available for less than 2 months according to the spokesman, so best get in quick. Let's hope the Express is right (I haven't been able to find it onthe Cahoot site) - this is nice timing for me as my Egg bonus intro is about to run out! ;D

HTH,

Chris

MSE_Martin

This is a cracking account and will be online from tomorrow - i have updated the savings account article and will put it online and link to it from my tip (just waiting for Cahoot to go live)

martin

quinlanmd

It will be interesting to see whether they will allow existing customers like myself to apply for this account (not that the existing savings account isn't competitive).

I'm just concerned about the fact that this appears to be an introductory rate savings account probably for new applicants. I hope there will be an Egg-style loophole.

Elman_2

It said in the article it's for both new and existing customers.

Chris

creditman

There is an article about the new Cahoot account at http://www.thisismoney.com/20040623/si79692.html

laminki

only the first 50 grand at 5.5%

(only joking ;D)

System

Wow 5.5 % this sounds too good to be true. How can they offer such a high interest rate ?! I shall reading the smallprint on the Cahoot website tomorrow.

So far I have stuck with Ing and have found them faultless so far.

bonecold1

You can apply here

http://www.cahoot.co.uk/cahoot_products/cahoot_savings/frameset_savings_easy_access.html

crumpetman

Do existing customer have to apply for this? It looks like the same savings account but with a higher interest rate. Surely existing customer should just get the new rate automatically?

I'm going to try to apply anyway but I don't see how it's going to let me have two savings accounts open.

bonecold1

Yes existing customers need to apply. It is a completely separate account and the existing Cahoot Savings account will be paying 4.85% from 8th July. It is shown as a separate account on your personal homepage as savings and investments rather than the savings account.

System

The catch with this account (there always is one) is that although they guarantee the rate will be at least 5.5% for 12 months, it probably means the rate will be fixed at 5.5% for 12 months.

This means if interest rates rise another 0.5% or so in that time, other savings accounts may start to be more attractive. I would look at this account as a short term punt but be prepared to move your savings when the rate starts to be less attractive.

For my part I'm sticking with Egg for now (5.25% for 6 months) because this is guranteed to increase with the base rate over the next 6 months. I'll move my money when this special rate comes to the end.