Cahoot Sunny Day Saver 5%

What_time_is_it

Can someone help me with an interest calculation?

My Cahoot Sunny Day Saver pays 5% annually on balances up to £3,000. I have £3,000 in it. Will I get £150? Or is the interest calculated in a way that means I get less? And would I be better off having a balance of less than £3,000? (e.g, £2,850, and putting that remaining £150 into my other Cahoot savings account at 4.52%)

Thanks!

flaneurs_lobster

You will earn £150.

If you were to leave the interest in the account, anything over £3k will earn no interest.

You might consider getting a second Sunny Day Saver and putting half in each.

If only this was allowed…….

jaypers

It’s actually 4.89% gross so you’re right about compounding issue (5% AER) potentially being a consideration because of the lower interest rate over £3,000.

In answer to your question, you should keep £3,000 in there as 4.89% is more than 4.52% (or 4.43% gross). You need to move the paid interest in Sunny Day each time somewhere else, eg: Simple Saver.

flaneurs_lobster

It’s actually 4.89% gross 

It's 5% gross/APR if interest is paid annually.

allegro120

https://forums.moneysavingexpert.com/discussion/6680011/cahoot-sunny-day-saver-5

Yes, providing the rate stays the same for a year it will earn you £150. When the interest is paid you can simply redeploy it elsewhere to compound. Don’t need to reduce your balance until it increase to above £3000.

subjecttocontract

I have 2.... one in my sole name & a joint one.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82105384#Comment_82105384

That works.

I wonder what would happen if the OP were to attempt to 'Upgrade' their Simple Saver to a Sunny Day Saver?

tightbloke61

Cahoot don't seem to mind how many Sunny day accounts you have............

friolento

https://forums.moneysavingexpert.com/discussion/comment/82105476#Comment_82105476

Please stop poking the bear 🐗

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/82105556#Comment_82105556

Maybe they will, maybe they won't

DRS1

Interesting everyone is assuming the OP has had the £3k in the SDS for a full year.