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

YorkshireBoy

kmhtkmhtkmht wrote:

so I would make 42.5 pounds making my total 10042.5?

You're a decimal point and 6 months out I'm afraid.

Very roughly...

10,000 x 4.25% x 0.8 / 12 x 6 = £170 for a basic rate tax payer.

johnllew

Anon wrote:

Bother - wish I had seen this a few minutes ago before applying! Never mind, would it have been available for existing customers anyway?

It worked for me and Mrs JL as existing Cahoot customers.

charlieboycat

kmhtkmhtkmht wrote:

so I would make 42.5 pounds making my total 10042.5?

Err ... not quite. £10k at 4.25% for 6 months would generate approx £212.50 gross (exact answer depends on number of days in the particular six months). But unless you can certify as a non-taxpayer you'd suffer 20% tax at source and be credited with approx £170 net - meaning circa £10,170 upon closure after 6 months.

charlieboycat

innovate wrote:

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.

Further to my previous response questioning this interpretation, I emailed Cahoot. Their email response was:

I can confirm that the complete balance as long as it is over £15,000
would attract the higher rate of interest.

innovate

charlieboycat wrote:

Further to my previous response questioning this interpretation, I emailed Cahoot. Their email response was:

I can confirm that the complete balance as long as it is over £15,000
would attract the higher rate of interest.

Thanks for correcting me, charlieboycat!

kmhtkmhtkmht

Wow what a WASTE of money... wait ALL that time and you only made a couple hundred quid... that's right crap.

Your better off buying into all these funds I keep hearing about, including this Middle East Fund that see's returns of 64%...

charlieboycat

kmhtkmhtkmht wrote:

Wow what a WASTE of money... wait ALL that time and you only made a couple hundred quid... that's right crap.

Your better off buying into all these funds I keep hearing about, including this Middle East Fund that see's returns of 64%...

Oh dear - I'm sorry you found YorkshireBoy's and my replies so unhelpful (we were trying to help, really ....)

However, on the assumption that you understand your suggested alternative investment strategy I am slightly surprised that you were unable to work out the maths for yourself and needed to ask in the first place.

Would you like to share with us the details of the particular investment that yields 64%?

steve2578

Not wishing to throw a spanner into the works, but did anyone read last Wednesday's 28/09/05 "Money Mail" which had the following article :-
Internet bank Cahoot launches a Bonus Saving Account on Friday paying a variable rate of 4.2% after 20% savings tax (worth 5.25% before tax) for the first six months.
I will miss out the next three paragraphs about the details because we know what they are.

The last one states that :- Cahoot is also closing its existing savings account which pays 3.88% (4.85%) on a minimum £1.

My concern is that may also apply to the Introductory Savings Account which pays 5.3%. I am waiting for a secure message back from them.

charlieboycat

steve2578 wrote:

The last one states that :- Cahoot is also closing its existing savings account which pays 3.88% (4.85%) on a minimum £1.

My concern is that may also apply to the Introductory Savings Account which pays 5.3%. I am waiting for a secure message back from them.

I would assume in this context that "closing" simply means you can no longer open one - not that already open accounts will be peremptorily closed.