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Cahoot offers 5.2% on easy access savings – but there’s a catch

Cahoot offers 5.2% on easy access savings – but there’s a catch
Emma Lunn
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Emma Lunn

Cahoot’s Sunny Day Saver pays 5.2% AER/gross (variable) – but only on balances up to £3,000.

A customer with £3,000 saved in the account would earn interest of £156 in a year. But no interest is earned on balances above £3,000.

Cahoot’s Sunny Day Saver allows customers to deposit money as often as they like, as well as withdrawing their funds without restrictions. The account can be opened online with a minimum opening balance of £1.

After 12 months, the Sunny Day Saver matures into the Cahoot Savings Account which pays 1.2% AER gross.

Cahoot’s Sunny Day Saver is the joint second-highest paying easy access savings account at the moment.

The best paying easy access account is from Metro Bank which pays 5.22%. But this also includes several catches. Firstly, the rate includes a 3.46% bonus for 12 months. Secondly, the bonus rate is only applied if a minimum balance of £500 is reached within 28 days of account opening. Thirdly, customers need to give one day’s notice to make withdrawals of more than £1,000.

Ulster Bank’s Loyalty Saver pays 5.2%, the same rate as Cahoot’s Sunny Day Saver. But there is a caveat with this account too – it only pays this rate on balances over £5,000 – savers only earn  2.25% AER/Gross (variable) on balances between £1 and £4,999.

All three of these accounts beat inflation, which has now fallen to 4.6%.