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Abbey National launches Cahoot

Abbey National is launching its online bank Cahoot today, while rumours abound that a stake in the venture will be sold off in the near future.

The high street bank denies it is seeking investors for its bank, saying it has turned down the approaches of a number of venture capitalists. It does not rule out that outside investors will be ruled out indefinitely.

An Abbey National spokesperson says: “We are launching at the moment, but we have not ruled out taking to third parties sometime in the future. Venture capitalists have already approached us but we have said let&#39s wait and see.”

Cahoot offers interest free credit cards and overdrafts to the first 25,000 applicants it receives as of 9:00 am today. Interest rates normally sit in the seven to 11 per cent range.

Customers in credit will be paid interest rates between three and 4.4 per cent, which far outweighs the average high street bank&#39s rate of one per cent. It is not the highest going though, other online competitors such as Co-operative owned Smile pay 4.75 per cent across the board.

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