Info for Cahoot 5.65% intro savings a/c holders

thor

deemy2004 wrote:

No way this rate will stick.. NO way ! Give it 2 and half months TOPS !

But still the changed rate will hopefully remain competitive.

Well at least they have resisted the urge to follow the rest of the sheep. This really is an unusual move. I may even reward them by leaving my money with them even after the rate drops(at least for a month or two)

deemy2004

You could use it as a feeder to the monthly savers..

I don't know if the offer is still running, but you could have 2 derbyshire monthly savers each taking £1k per month for an indefinte period of time and paying 5.85%

Plus since there are plenty of 1 year regular savers out there it is likely the rate will stay competitive for a longtime !

Thats £24k per customer per year

Lopo

Cahoot is fab....! Mine year expires soonish too...

I too suspect it will remain for a couple of months and then plummet.

The only negative about the cahoot account is if I remember correctly from the terms and conditions, since the interest is paid annually, you wont get to see any of it for another year if people leave their stooze £££'s with the account and resultantly are forced to keep the account open even if you withdraw all your money - you forfeit the interest on account closure! (...and all the decent compounding out the window even if you leave it open!)

Contemplating what the next best instant access savings accounts are...have gone through the savings zone in mse and various other sites and institutions, but nothing quite appeals. Relying on fellow stoozers to show me the way....please!!

What are the *next* best options out there currently ?

Would very much like an account that pays interest monthly for the feel good factor on simply being able to watch the stooze pile compound itself silly and know what the interest actually is, but I am open to alternatives!!

Muhahahaaaaa.....!

ffacoffipawb

Lopo wrote:

The only negative about the cahoot account is if I remember correctly from the terms and conditions, since the interest is paid annually, you wont get to see any of it for another year if people leave their stooze £££'s with the account and resultantly are forced to keep the account open even if you withdraw all your money - you forfeit the interest on account closure!

What on earth makes you think that? On closure, you get the interest accrued up to date of closure.

Lopo

Hmmm.....you know, I distinctly recall that that was one of the conditions of the account, and made a mental note to bear that in mind nearing its anniversary should I want to close it. On looking at the special conditions of the site now, there is no longer a reference to it....

Very odd....its not ordinary actively remembering something like that for a year, so I must have read is somewhere....anyone else recall it at all?

Confused!

mary

Lopo,

You got me puzzled there. So I've checked the Special Conditions online which apply to this account, which I also have. For the benefit of others it says

Interest

4.1 Variable interest rates apply - see Rates and Fees for further information.
4.2 Interest is calculated daily on the amount in your cahoot savings account at the end of each day (excluding any uncleared items) and will be credited to your cahoot savings account on the first anniversary of account opening, and then annually on that day thereafter.

I don't ever remember seeing anything to the effect that you would forfeit your interest if you closed your account during a year and that you had to wait until its anniversary before you could close it. I assumed you would get whatever you were due up to that point.

I did print out the paragraph below at the time of opening the account, which refers to the 5.65% and 5.15%.

Savings rates for introductory rate accounts available between 24 June 2004 and 1 September 2004
Account balance AER/Gross p.a.
Up to £49,999 5.65%
£50,000 to £249,999 5.15%
£250,000 + 4.65%
‡For previous rates please visit https://www.cahoot.com and click on rates and fees
Interest is calculated daily based on the amount in your account at the end of each day and is added to your account annually. Please note that the tier of interest above, that is applicable to the balance of your account, is applied to the amount of funds held within that tier and not the total balance. e.g., an account balance of £60,000 will attract an interest rate of 5.65% up to £49,999 and 5.15% on the remaining £10,001

I'm slightly puzzled since if you look on the Cahoot site now, under Previous rates, it says the Introductory rate was 5.5% and 5% for amounts above the £50K. So were we being short changed? I had £49,999 in there most of the time, but now with the interest they added on, it's gone over the limit into the next category.

Lopo

You read the same bits I did hence my other follow up post....

Your forgetting 5.5% Gross = 5.65 AER when you factor in the compounding, basically interest on the interest earned in the year is equivalent to 5.65%! They are permitted to advertise it either way....Dont worry - Your not being short changed!

Regarding my initial comments.....Around Section 18.2 (I think - not double checked again!) of the general terms that also apply in addition to the special conditions indicates that if the terms are to be changed and are favourable to the individual, they wont notify accordingly...its written oddly. I could be completely wrong, and if so will go to the doctors to get checked...but I'm adamant I'm right, its and odd thing to remember for a year! My sanity is at stake here!! Help! Wibble...

I never actually said that cahoot said you had to wait until the anniversary to close, it was just the logical thing to be doing if given a must close it situation and is how I swear I read and recall it originally!!

I just think its changed favourably, and they never notified as they are allowed to do....

mary

Thanks for the 5.65 v 5.5 Gross v AER - I had forgotten!

I'll wait the Doctor's verdict then!

fairenoughclough

I'm pretty sure it was 5.5% at the initial offering stage and then increased to 5.65% after a BoE rate increase.

kazd

Here is the body of an email that I received from Cahoot

As the interest rate guarantee* on your introductory savings account is shortly coming to an end, you may be wondering, will the interest rate or my annual interest change?

We are pleased to confirm that the current variable savings rate of 5.65% gross p. a./AER** and annual interest will continue unchanged, which means you can continue to save at this very competitive rate.

We will of course continue to monitor the savings market to ensure your rate remains competitive, and if the Bank of England decides to change the base rate, we will email you to let you know of any changes that affects your account.


Hope this helps