Maybe a silly question but i don't know, cahoot 5.20% account

fletcher1985

Hello i have the cahoot 5.20% savings account max 3k i have picked annually interest but what would you receive if you closed the account after 6 months is it still 5.20% or would it be lower. chat gpt told me it would but 2.6%

Beddie

It will be about half the interest compared to a full year, yes. 

PixelPound

It would be 5.2% over 6 months but the AER be 2.6% because no interest of the rest of the year. So if you left £3K in for a full year you'd get £156 in interest, close it after 6 months you get about £78.

eskbanker

nic_c said:

It would be 5.2% over 6 months but the AER be 2.6% because no interest of the rest of the year. So if you left £3K in for a full year you'd get £156 in interest, close it after 6 months you get about £78.

The AER would be 5.2% however long the money is in there, as by definition it's the annualised rate!  But yes, in round terms, six months will result in an effective payable rate of about half that....