As you’ll see in the Top Savings account article, internet bank Cahoot has become the new top clean savings account; but only if you’ve got between half a million and a million quid in it! However, the structure of its interest rates is the most bizarre I’ve ever seen.
Cahoot Savings Account Interest rates
The important thing to understand here is that the rate doesn’t just apply for the tiered amounts; it applies for the whole amount you have saved. Now look carefully and you’ll see you get paid LESS if you’ve got more than a million in there. This is absolutely ridiculous. Look at the sums:
This means the one pound extra saved actually costs you £7,000 a year in interest! Anyone lucky enough to have anything over £900,000 in there; beware the interest you’re earning may push you over the limit!