Cahoot offer 5.25% for 6 months on £15K+

Kazza242

From the 30th September 2005, Cahoot will offer 5.25% for 6 months, on deposits of between £15,000 - £100,000.

The rate is now being advertised on Moneyfacts and details will appear on the Cahoot website from Friday 30th September.

Balances between £1 - £14,999 receive 4.25%p.a.

Interest is paid on maturity.

deemy2004

On a £50k the interest would be 4.95%
Though taking into account loss of interest on the 4 days to transfer there it would be 4.89%

innovate

Should be interesting to see whether this is "new customers only", and whether this is an instant access account.........at the moment, there is nothing on the Cahoot website yet, and the application page is offline, so I can't check the T&Cs.

innovate

Done some quick calcs for myself and I do hope they don't apply this to me because their new rates are 3.93% AER (up to £14.999) and 4.93% AER for £15K-100K. This does not compare favourably with the 4.85 AER they have been offering for the last few months (but it seems that offer has now disappeared)

YorkshireBoy

innovate wrote:

Done some quick calcs for myself and I do hope they don't apply this to me because their new rates are 3.93% AER (up to £14.999) and 4.93% AER for £15K-100K. This does not compare favourably with the 4.85 AER they have been offering for the last few months (but it seems that offer has now disappeared)

So, for £30K the equivalent rate is only around 4.5%? Worse still when the bonus (if any) is withdrawn.

Haven't done the sums but, unless I'm missing something obvious, with £30-40K you're better off with ING at 4.75%.

Chester_Draws

Is the Cahoot "Special Introductory Rate" at 5.3% still applicable (was 5.6%)

or has this now reverted to the ordinary saving rate ?

Getting confusing .......... wish they could put the rate on the account page.

If the 5.3% still stands, no need to move ??

Kazza242

Chester_Draws wrote:

Is the Cahoot "Special Introductory Rate" at 5.3% still applicable (was 5.6%)

or has this now reverted to the ordinary saving rate ?

Getting confusing .......... wish they could put the rate on the account page.

If the 5.3% still stands, no need to move ??

Yes, the 5.3% offered to introductory rate savers still stands, as far as I know. I haven't had an e-mail or secure message from Cahoot stating otherwise.

The 5.25% offer is completely unrelated to the 5.3% intro rate offer.

innovate

I think they're on a quest to confuse the life out of everyone

My understanding is that

1. only Cahoot instant access savings account you can apply for right now as a new saver is their 'bonus savings account'
2. existing savings account holders will be entirely unaffected

I have deduced my view from a reply I got from cahoot in response to my query as to whether I [existing instant access savings account holder] would automatically 'benefit' from the new account:

I can confirm that the savings account rate offered on the new cahoot bonus account will not apply to any existing savings account.

If you would like to benefit from the savings rate offered on the cahoot bonus savings account you will need to apply for this online from your personal homepage.

Someone correct me please if I got it wrong

PS. I don't believe there is any benefit for existing Cahoot instant access savings account holders in that new Cahoot offer. As YB said earlier, there are most likely better non-Cahoot alternatives for new savers!

MarkyMarkD

The rate is 5.25% for the six months - the AER is irrelevant unless you are going to leave the money in there for a whole year. So it's still a better rate than most competitors.

charlieboycat

As MarkyMarkD says, forget the AER. It's 5.25% gross for 6 months - close the account after 6m and take the accrued interest. That way you get more than taking the compounding 5.15% monthly interest.

innovate

charlieboycat wrote:

Where's the 5.3% figure coming from? I only see 5.25% on their website?

As MarkyMarkD says, forget the AER. It's 5.25% gross for 6 months - close the account after 6m and take the accrued interest. That way you get more than taking the compounding 5.15% monthly interest.

Understand - - but the 5.25% is still only available at the cost of a much reduced rate [4.25%] for your first £14,999! YorkshireBoy is spot on, with £30-£40K, you are better off with ING (or some other alternatives). Not even if you have more to put into the account does the Cahoot rate beat other offers, it's more like a "me too" from Cahoot.