Cahoot

Cahoot is a division of Abbey National plc, who used to be a Building Society (remember them?) before demutualising then broadening its product range in order to leave it in its present state.

Cahoot offer a whole range of financial services: current accounts, credit cards, loans, savings accounts, investment services and share services. I shall focus on just one of these services, the current account.

What?
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Cahoot is an on-line bank, operated over the Internet. That said, you can not do everything over the Internet.

Cheque deposits are made by post, or at the Post Office.

Up to £500 cash per day can be withdrawn from Link cash machines in the UK, and from Visa cash machines around the world.

The cash card also acts as a cheque guarantee card up to £100, provided you choose to have a cheque book, but more on that later.

The current account also has a very handy automatic interest free overdraft of £250.

Setting Up
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Setting Up a cahoot current account can be done almost completely on-line. Besides submitting the usual details of name, address, employer, income, etc. you also need to decide on a username, password, memorable year, and memorable place. You also need your mother’s maiden name.

Not everything can be done on-line. Certain formalities are still required to be done by post: signing the application, and providing two proofs of identity and address for anti-laundering requirements.

During the set-up you specify certain features of your current account.

You can choose to operate the account with or without cheque book - cahoot say that one can live without a cheque book, but I’d like to see the people at cahoot try that! Without a cheque book you get a higher rate of interest.

Without cheque book:

£1 - £249,999 . 3.45% AER
£250,000 + .... 3.25% AER

With cheque book:

£1 - £249,999 . 3.35% AER
£250,000 + .... 3.25% AER

Cahoot offer a guarantee that the interest rate will not fall below the Bank of England base rate less 0.5% for more than 30 days until 31st December 2003.

(There were 3 tiers of interest rates, but they have now cut back to 2, and made the interest rates less competitive in the process. That said, cahoot still comes out top in the MoneyFacts list of current accounts.)

You also choose whether to have a monthly fee with a lower overdraft rate, or no fee with a higher overdraft rate. Obviously this is to tailor the account to your best advantage depending on whether you spend more time in credit or debit:

............... Limit . monthly rate . fee .... APR
Interest only . £3000 . 0.5650% ...... £0 ..... 7.0%
Fee only ...... £3000 . 0% ........... £13.65 . 5.6%

You also specify what day of the month you want your interest paid (which is also your statement date).
There are no postal statements, only on-line statements which are kept around for a year. You can print out the on-line statements, or order copies for a fee (see below).

Logging in
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Once your application has been successful you can then log in and operate your account from the cahoot web site.

Having clicked on the log in link you are prompted for your username and password, plus one of the memorable year, memorable place and mother’s maiden name. (This is a lot quicker than the login process for egg accounts.)

There are then seven sections:

Account status
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View your recent transactions, i.e. since the last statement date

Statement
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Select a previous statement, then view the transactions during that statement’s period.

Transfers
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Set up transfers between your own cahoot accounts.

Payments
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Payments are made by BACS (fre, but can take 4 days) or CHAPS (£20 fee, but next day). You need to specify the sort code and account number of the payee, along with an optional reference number that may be required by the payee in order to identify you, and the date on which you wish the transfer to take place.

You can make one-off payments, modify your address book of payees, make a payment to someone on your address book, and check your future payments that you have set up.

Standing Orders
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You can list and create standing orders to named recipients for named sums over specified periods.

Direct Debits
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The is your list direct debits including the reference, amount, last date and frequency – but these details are not always accurate!

Account Manager
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This is where you can perform all the other odds-and-end associated with operating your account.

Activate new debit card

Request new or replacement debit card

Request New PIN

Make one-off funds transfer from another UK bank

Change overdraft limit

Change rate and fee option

Order new cheque book

Order new paying-in book

Order tax deduction information

Change your tax status

Remove cheque book option

Duplicate paper statement

Insurance claim form

Order deposit envelopes

Stop payment on a cheque or range of cheques

Close your cahoot current account - not something you normally find with any on-line account!

Switching
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Having opened your new cahoot current account, if you want to switch direct debits, standing orders and salary payment from your old bank then order a switcher pack from cahoot.

The switcher pack consists of a few simple forms for you to fill in: old bank details for closure and direct debits, employer for salary details.

Cahoot do the rest, but it can take a while for your old bank to send through the details to cahoot, and you’ll need to keep enough money in the old bank account to cover direct debits and fees as your old bank drags its feet then loses the letter telling them to close your old account!

Web Card
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The Web Card basically presents a unique credit card number for each on-line purchase. Selected partners also allow the Web Card to automatically fill in the payment details on your order form.

Contact
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The contact section directs you to a series of FAQs on various subjects. If your question is not covered in the FAQ, then leave your message for the cahoot staff to get back to your.

Fees
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Visa cash machines levy fee of 1.5% of the transaction (minimum £1.50).

Debit card transactions abroad attract a 2.25% commission, plus a Visa transaction fee.

Duplicate cheque ............ £2
Duplicate voucher ........... £2
Duplicate statement ......... £2
Returned cheque ............. £20
Returned direct debit ....... £20
Unpaid standing order ....... £20
Unauthorised overdraft fee .. £25
Unauthorised overdraft rate . 21.9% APR