Santander division cahoot launches new competitive easy access savings account

Saver looks happy at laptop

Santander division cahoot has launched a competitive easy access savings account

Jessica Sheldon

By Jessica Sheldon

Published: 20/11/2023

- 13:27

Updated: 20/11/2023

- 13:31

Savers don’t need to have any other cahoot accounts to open the easy access savings account

UK-based online bank cahoot, which is a division of Santander UK, has launched a new easy access account paying 5.20 per cent AER/gross (variable).

The competitive rate makes it almost a market leader in terms of best interest rates on easy access accounts right now – just behind Metro Bank’s Instant Access Savings Account paying 5.22 per cent including a bonus.

The Sunny Day Saver pays the variable 5.20 per cent AER rate on balances of up to £3,000 for 12 months.

Accounts can be opened online with a minimum of £1.

Person looks at laptop and calculator

The Sunny Day Saver pays the variable 5.20 per cent AER rate on balances of up to £3,000 for 12 months


After 12 months, this account will mature into the cahoot Savings Account.

This currently pays 1.20 per cent AER/gross (variable) if the customer opts to be paid the interest annually or 1.19 per cent gross (variable) if it’s paid monthly.

If a customer deposited £3,000 for the whole of the term, they could earn interest of £156 a year.

No interest is earned on balances above £3,000.

Customers can put money in the Rainy Day Saver account as often as they like.

They can also withdraw the money without restrictions or charges.

cahoot’s full range of savings products, which can all be opened online, are:

  • cahoot Fixed Rate Bonds (5.25 per cent/5.30 per cent AER/gross depending on term length)
  • cahoot Sunny Day Saver (5.20 per cent AER/gross variable)
  • cahoot Simple Saver (5.12 per cent AER/gross variable for 12 months).

Big banks came under fire last week, as figures showed their interest rates for easy access accounts have generally failed to improve their positions in the market, Moneyfacts said.

James Hyde, spokesperson at Moneyfacts, said: “Despite the increased focus on the passing of interest rates onto savers, the big banks have on the whole failed to make their easy access rates more competitive relative to the rest of the market.

“The Financial Conduct Authority’s championing of Consumer Duty challenged banks to price their portfolios competitively, and while their fixed bonds are hitting the mark, some no-notice accounts continue to be worse than average.

“Of the highlighted easy access accounts belonging to the big five banks, only NatWest has seen its option improve its quartile ranking in the past three months – rising to the third quartile from the fourth (bottom).

“Elsewhere, Barclays Bank, HSBC and Santander remain in the third quartile, while Lloyds Bank remains rooted in the bottom tier with an easy access rate of just 1.40 per cent. All four of these accounts have seen rates increased in recent months, but these increases have failed to yield an improved position compared to the rest of the market.

“The better news is that all five providers do offer fixed rate bonds sitting in the top quartile of the market, showing they are willing to pay good returns on accounts which guarantee their capital over a certain period. As always, it is down to customers to proactively monitor savings rates and switch if they discover they can do better.”

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