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cahoot launches Simple Saver Issue 10 at 4.55% AER/ gross variable

ended 23. May 2025

cahoot, the UK-based online bank, has today launched its Simple Saver (issue 10) paying 4.55% AER/gross variable for 12 months, on balances up to £500,000 . The new Simple Saver marks a 0.14% increase from the previous cahoot Simple Saver (issue 9) which paid 4.41% AER/gross (variable) for 12 months – bucking the anticipated trend for savings rates cuts following the recent Bank of England base rate reduction. As an easy access account, customers can make deposits as often as they like, as well as withdrawing their funds without any fees or restrictions. A customer with £10,000 saved in the account will earn £455 a year in interest. 

Any thoughts on this, whizz them across sharpish.

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Editor
Anita Wright
Chartered Financial Planner at Ribble Wealth Management
It’s important to look beyond the headline rate. While Cahoot’s 4.55% AER marks a modest rise from 4.41%, the rate is variable, not guaranteed for a full 12 month period, and could drop at any time——potentially even shortly after the account is opened. This is a key risk, as many providers are cutting rates due to policy shifts—Cahoot’s higher rate may not last. The rate is expressed as AER a figure often misunderstood. AER assumes that you do not withdraw any money and that interest is compounded annually. If, in practice, you withdraw funds or receive monthly interest payments, the effective return may fall short of the advertised AER. In this way, the rate may overstate the actual earnings for those using the account as a day-to-day cash reserve. Moreover, while useful for short-term savings or emergency funds, it is not a long-term solution. Holding large sums in easy-access accounts for extended periods may lead to missed growth opportunities elsewhere.