Cahoot simple saver interest rate

sgoulder

just opened a cahoot simple saver as tops well know bank savings interest at this time. It advertises, as does the confirmation email, a 4.17 are interest rate.

on opening the account, it now shows 4.07%, it doesn’t state if that is see, simple rate. On contacting them, it’s the simple rate as getting paid interest monthly so that is 4.17 AER

I find the total experience ridiculous that a bank does show , or clearly state the AER rate on an account, or if it’s a aer/gross etc.

i have checked some other accounts i have, they are all very clear and explicit what the interest rate is. (And all show aer rate)

Just for info for anyone else who this might confuse. Will be moving my account as soon as I can as they do not inspire any confidence.

flaneurs_lobster

This is what it says on the Simple Saver Summary Sheet (the thing that you said you'd read and agreed with when you signed up for the account).

What is the interest rate?

Interest rate

Account name/term	Maturity date	Tier	If interest is paid annually	If interest is paid monthly

cahoot Simple Saver (Issue 16)/12 months

1 Year/12 months after account opened

£1-£500,000

4.17% AER/gross (variable) for 12 months from account opening

4.17% AER/4.09% gross (variable) for 12 months from account opening

£500,000+

0.00% AER/gross (variable) for 12 months from account opening

0.00% gross (variable) for 12 months from account opening

 

We calculate interest daily and pay it annually or monthly. You can decide to have your interest paid monthly or annually. Once decided, you can't change this.

SJMALBA

From the account KPI on their website:

kaMelo

Removed as others explained it better than I did.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81989135#Comment_81989135

Thank you, I buggered up the formatting trying to copy the thing.

If the OP finds this a little too complicated, unclear or inspiring no confidence then perhaps they are right to close the account. Maybe they are not familiar with accounts crediting interest monthly?

Enzo_L

https://forums.moneysavingexpert.com/discussion/6667165/cahoot-simple-saver-interest-rate

They advertise the account as paying "4.17% AER/gross (variable) for 12 months".

On the product page for the account it say it pays "If interest is paid annually 4.17% AER/gross (variable) for 12 months from account opening" and "If interest is paid monthly 4.17% AER/4.09% gross (variable) for 12 months from account opening".

I can't see anything they're doing that justifies why you "find the total experience ridiculous" or how it could "confuse" anybody.

sgoulder

https://forums.moneysavingexpert.com/discussion/comment/81989134#Comment_81989134

oh I completely agree that is what it said, and the email I got after as well… but then when you log into your account and it shows a totally different rate, and doesn’t say that the rate there is the “simple rate” and not the AER, it’s confusing as you have no idea if they have set it your account correctly.

At best it’s confusing to customers, at worse it’s against FCA rules that state they don’t have to show the AER but they DO have to be clear which term the rate applies to. Just putting a percentage and not stating which rate it is, very bad practise.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81989164#Comment_81989164

OK, crap web page design. Agreed.

Don't think it's worth closing the account down for.

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81989164#Comment_81989164

This is quite normal across the board. I have dozens of EA accounts paying monthly interest and not showing AER, just gross.

sgoulder

https://forums.moneysavingexpert.com/discussion/comment/81989188#Comment_81989188

that’s very intesting to know, I have several another accounts as well, I checked all mine (pay interest monthly) and some of them show gross and some show AER, but what they all do is clearly tell you which one it is… which Cahoot doesn’t do. The page on tour account simply needs to have next to the rate in brackets that it’s gross… my limited understanding of what FCA says is that it should tell you which it is. I really don’t care which rate it shows, so long as I know which I am looking at, would not be the first time a bank has set an account up wrong for me.

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81989198#Comment_81989198

In my understanding of this particular FCA rule providers must show an AER when quoting a savings rate so customers can compare products, there's no explicit FCA rule with regards to display on your account page. So I don't think Cahoot is breaching the rule, but I agree it would be a better practice to include the word "gross".