Cahoot Sunny Day Saver Question

sparkiemalarkie

Hi, Re Cahoot Sunny Day Saver

I might be over thinking but, the wording on the website doesn't seem very clear to me.
£1 - £3,000 pays 5% interest
£3000+ pays no interest
I'm guessing that this means that I will get 5% interest on the £3,000 but no interest on the bit that is over £3,000 (Not NO interest on everything because I have gone over £3,000)

their T&C go on to say
"We calculate interest daily and pay it annually or monthly."

So I have chosen annual interest and have put £3,000 in my sunny day saver. Am I missing out on interest on the interest because I will then be over £3,000?
Is it better to keep £2,900 in the account for example?

Hope that makes sense

sx

friolento

You will get interest on up to £3,000 even if your balance goes above £3,000.

If you have chosen monthly interest payment, you can skim off the interest each month, or you can do as you suggest and just keep £2,850 in the account. Alternatively, choose annual interest and you just have to deal with the interest payment once

sparkiemalarkie

https://forums.moneysavingexpert.com/discussion/comment/81979120#Comment_81979120

Thank you friolento, I have definitely been over thinking the annual interest part!
Yep, 5% on £3,000 is £150 added at the end of term, skim it off - simple…..

sx

Russ66

https://forums.moneysavingexpert.com/discussion/comment/81979171#Comment_81979171

No need to draw on it if on annual interest, the SDS only lasts for a year.

DRS1

But at the end of the year don't you get a chance to upgrade to a new SDS? If you do then wouldn't you want to take the interest out?

MisterMotivated

You'd need to open a new account if you wanted another year at 5%

janusd

https://forums.moneysavingexpert.com/discussion/comment/81979247#Comment_81979247

you can upgrade a SDS at anytime to a newer issue… if you upgrade, any interim interest is paid next working day; the account number stays the same; the new maturity date changes - it would be the same account renewed, at the rate of the new issue - not a new account.

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81979214#Comment_81979214

Yes, you can upgrade whenever a new issue comes out or at the end when it morphs into a cahoot Savings Account. Interest is paid day after transformation, so that's the time to withdraw interest.

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81979247#Comment_81979247

The interest rate is variable, so it might be different at the time when you want another year.

CricketLady

This has reminded me to upgrade my existing Sunny Day Saver plus a joint Sunny Day Saver, both opened within a few days of each other in the first week of May last year so I've just done that.

When I arrived at the drop down menu, however, asking me which account I would like to upgrade, it also included a 4.05% account I opened a few weeks ago (I briefly went over 2 x £3000 and needed to put some cash temporarily).

I haven't touched that one but it does look like I could have a third 5% account - would it let me or would it tell me off (always hated being in trouble!)

friolento

https://forums.moneysavingexpert.com/discussion/comment/81979360#Comment_81979360

It would most likely let you do this but don't shout about it