Tuesday 30th January 2007
Internet bank cahoot has announced it is to increase the rates on its savings account with effect from February 7th 2007.
To reflect the Bank of Englands decision to raise the base rate of interest by 0.25 per cent, cahoot is increasing the interest paid its savings account by the same figure.
This keeps it in line with the Bank of Englands rate of 5.25 per cent for balances up to £250,000, cahoot says.
Meanwhile, those with a balance of more than £250,000 may receive the lower rate of 4.75 per cent on the full amount.
The move may reflect a desire to remain competitive following cahoots smaller increase of 0.20 per cent in response to Novembers interest rate rise.
Speaking at the time, Lisa Taylor of Moneyfacts said: "Whilst we may criticise providers for not passing on the whole increase, it is more important to look at the pay rates."
"Cahoot still remains a very competitive savings proposition in the current market," she added.
Ms Taylor noted that despite being less than the Bank of Englands increase, cahoots November rate rise met its promise to stay above the base rate.
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