After reading various posts and positive feedback from you guys, I have decided to open a savings account with Kaupthing Edge to try and reap back some descent interest on my savings....Cahoot just isn't doing it for me anymore!

However, Kaupthing edge only offer transfers into their account by either CHAPS or BACS from a nominated linked account. I have opted to link my Halifax current account to this as I was unable to link my Cahoot savings account to it....Anyway so I strolled over to my local Halifax branch at lunchtime and said to the lady
"I’d like to make a BACS payment please".
she replied by stating that they don’t offer BACS payments to customers, and that its only really used for business account holders to pay their staff.
"we do however offer CHAPS transfers but it will be a £25 fee"...."are there any of our products you are interested in...."
"not particularly" I promptly replied

This means that every time I want to transfer money into my new KE savings account it is going to cost me £25! Am i missing something here? this kind of makes the attractive 6.97% look a lot less attractive now if it is going to cost me this much. ideally I want to be paying in some cash every month. but at this rate i will lose £300 of lost interest in Halifax fees!

I have since spoken to KE and they basically said that my bank have lied to me and that BACS payments can be done, "they just don’t like to do them because they can charge for a CHAPS". They also suggested that I change to a bank that will allow BACS payments. This seems like a lot of hassle just to try and get a better interest rate on my savings. Any suggestions on the best route to take?

Nonsense. Halifax certainly do allow BACS transfers, at least online.
They are even signed-up to the new fast transfer service.