Cahoot Interest Payment Date

Devonjem

Hello - I opened a Simple Saver on 14 April and deposited £1 and chose monthly interest. On 6 July I deposited a large amount. As of today, no interest has been received since account opening. I am waiting for Cahoot to reply to a query I raised about this. Is it correct to think that the 14th of the month is the interest payment date, so interest should have been deposited on 14 July? Or do they ignore the £1 and only start the interest period once further money is paid in - I doubt this can be right as from what I have read it is the account opening date which is the interest payment date. thanks

SacredStephan

Has the interest been "paid away" to another account?

wmb194

https://forums.moneysavingexpert.com/discussion/6679064/cahoot-interest-payment-date

It's easy to misclick; are you certain you chose monthly interest? When you look at your transactions page you should see an, "(M)" in your account's, "product name."

Devonjem

Interest gets paid back in to the Simple Saver. It is odd as I have several other Cahoot accounts and as far as I can tell, the account opening date is the interest payment date, although I think the interest payment date changes if an account is upgraded, but this account is not an upgraded one.

Devonjem

Yep - definitely monthly - the "M" is there

sgthammer

At 5% AER your initial £1 would have generated less than a hapenny a month in interest, so that's not worth worrying about, although it would certainly be good practice to give you the penny per quarter. But yes, if you correctly selected monthly interest you should have had something on 14/7 in respect of the week they'd been holding your larger amount.

For comparison, I opened my account in late November and got a couple of quid early Dec, so it's not usual for them to roll stuff over to the next full month, which would have been a possible explanation.

Hope you get it sorted out.

allegro120

https://forums.moneysavingexpert.com/discussion/6679064/cahoot-interest-payment-date

They don't pay if your accrued interest is less than 1p, and nano-pennies don't carry over to the next month. £1 doesn't generate enough interest for it to be paid. I keep around £2.85 (depending on the interest rate) in Cahoot dormant accounts to get my monthly penny. Since you opened this account on 14th April with £1 and deposited a larger amount on 6th July, your interest should be paid on 15th August.

Devonjem

Thanks for the replies. So this afternoon I received in to the account what looks like 1 months worth of interest. No secure message yet from Cahoot explaining what happened to the 14th of the month as being the supposed interest payment date.

nottsphil

https://forums.moneysavingexpert.com/discussion/comment/82095393#Comment_82095393

But why wouldn't several days worth of it have been paid in the middle of July though, the crux of the OP's question?

BTW with the recent increase of the Simple Saver rate to 4.43%, you can now reduce that dormant capital to £2.71 per account 😄

Actually, thinking about it further (I know, I really, really shouldn't), those monthly pennies aren't earning any compound interest at all. It would therefore be prudent to switch to annual interest, which will yield your 12p for just £2.66🤓

friolento

BTW with the recent increase of the Simple Saver rate to 4.43%

Not that it would make any big difference, but Simple Saver has not been 4.43% recently (or ever?)

I also think the monthly interest does earn compound interest - but in the end it’s the same AER whether you have the interest paid monthly or annually. Some people prefer monthly, particularly with the forthcoming 2p savings interest tax increase.

nottsphil

https://forums.moneysavingexpert.com/discussion/comment/82096829#Comment_82096829

It's as if you never read the post I was replying to! If you want to dispute that those pennies aren't compounded then it's @allegro120 you need to quote.

@gpman you are correct, I didn't allow for the shorter months nor for the restriction on switching to annual.

@[Deleted User]