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[MSE Dan]

What's the deal?

For those with Egg or Egg money card, it looks like there's a way to make totally free cash

It has a current promotion for Egg credit card holders, that open a Citibank Euro or Dollar (min £1) current account by 27 Feb (this Friday), and spend up to $75 or €50 by 15 April, then the amount spent will be credited back into your account within 28 days.

You'll need to earn over £20k to get one of these accounts. You should've got an email about this promotion,

Therefore in theory (though it's still untried) it's possible just to make the cash and not use the account further. To be sure there's no problem, buy something that you would've bought anyway, to minimise any downside if it doesn't work.

You'll be credit scored when applying for this account, so if you've a poor credit rating, or you need to save credit searches for something more important (ie. cutting the cost of debt), it may be wise to give this a miss.


Important Update 11.24am Wed 25 Feb.
A few people report below being told by Citibank staff its too late to get the applications done in time for this deal. We've re-checked this with Egg/Citbank press office and its confirmed (in writing) that, as long as the postal part of your application reaches it by 27 February, you will be eligible for the free cash offer. So if you want to do this apply ASAP, and consider using registered delivery. Thanks for the feedback though - it's best we're kept on our toes!

How to do this...

To get the free cash, you need to make a transaction in either Euros or US Dollars before 15 April.

There are a couple of ways to do this...

• On the web, but be careful...
  
  Make a purchase in Euros or Dollars from the UK. This can be done by purchasing items from an overseas website eg. Amazon.com, Amazon.fr, or booking a hotel or other service (even over the phone), BUT only if the transaction goes through in Euros or Dollars.
  
  The fly in the ointment here is a trick called 'Dynamic Currency Conversion'. A few overseas merchants automatically convert payments back Pounds Sterling. If this happens, the transaction won't count towards the Citibank promotion. So always do a proper check to be sure you're being charged in the foreign currency.
  
  When making a purchase in Euros or Dollars, you'll pay a foreign exchange fee of 2.75% of the transaction amount, but the free cash far outweighs this.

• Or just spend if you're going abroad...
  
  Spend when abroad before 15 April, or alternatively make a cash withdrawal from a Citibank ATM overseas. However, you'll need to be going abroad before 15 April for this to be a viable option.
  
  Making a purchase is the easiest option; just do it in the US or any country that uses the Euro, while qualifying Citibank ATMs are just in the USA, Germany, Greece, Belgium and Spain.

Should I pick $ or €?

This really depends on what it is you want to buy, and where you can get it.

In terms of the better return for your cash though, at 5pm on Tues. 24 Feb, the dollar option worked out a tad better, with $75 equating to just over £52.

Whichever you pick remember that storing money in foreign currencies is potentially risky, due to fluctuations in exchange rates, which can be extreme. Luckily here, once you've added money to the account and spent it in Euros or Dollars, you've no obligation to keep money there.

PLEASE FEEDBACK ANY PROBLEMS/SUCCESSES DOING THIS.

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[DesG]

Any mention of the fact that you will need a credit search to open the new account?

Some hints and tips on this thread I posted the last time this offer was on: http://forums.moneysavingexpert.com/...html?t=1103925

Cheers, Des.

[MSE Dan]

Cheers Des, have added a line in on credit searching

[Alfie E]

Originally Posted by MSE Dan

The fly in the ointment here is a trick called 'Dynamic Currency Conversion'. A few overseas merchants automatically convert payments back Pounds Sterling. If this happens, the transaction won't count towards the Citibank promotion. So always do a proper check to be sure you're being charged in the foreign currency.

Would this be Dynamic Currency Conversion? With that, you’re supposed to be offered a choice between the local currency and the currency used by your card/account. If they’re the same currency, DCC is not applicable. If the price is denominated in euros and you have an account held in euros, the merchant shouldn’t attempt to bill you in pounds. You might be thinking of some websites that can give you an indicative amount in other currencies. The underlying prices might be in, say, pounds, but you can ask the website to show you the approximate amount you would expect to pay once your own bank has converted the transaction from pounds into euros.

Originally Posted by MSE Dan

When making a purchase in Euros or Dollars, you'll pay a foreign exchange fee of 2.75% of the transaction amount, but the free cash far outweighs this.

I’m not sure I understand this. The Citibank website says, “fee-free purchases abroad in US Dollars or Euros with your Citi Visa debit card.” While you’ll lose a little in the exchange rate when initially transferring pounds into the Citibank account. This won’t be 2.75%, will it?

[fablad75]

I'm going to the States this Saturday, and I do have an Egg card, so this would've been PERFECT. Unfortunately there's no way I'll get the debit card from them in time before I leave

[blue1159]

i wanted a euro account to keep euros in while gbp drops and then convert bck, wud this account work

[nick88]

I did this a while ago when it was $100 (back when £1 = $2!), and it did take a while to credit - one month after the due-date, I got the credit, which was great

Edit: I didn't need to earn over 20k, but maybe the rule's changed?

[johnhoque]

Couple of questions, I see you need to transfer money into the account as it is a debit account, what sort of conversion rate does it use? is it competitive?

To get the free offer can you spend without money in the account or do you have to transfer in 50 EUROS? Finally no where did it ask me if I was an EGG holder?

[kevanp]

I just this morning (25 Feb) learnt about the Egg/Citibank moneyback deal from the MSE newsletter - having NOT received any promotional email from Egg. So logged on to Egg website, clicked through to the Citibank online application form, filled it in, printed it out, and just thought I'd call them before sending it off: to be told that since the account has to be OPEN by 27 Feb, IT'S TOO LATE!! Thought this note might help other potential applicants from wasting their time.

[m5rcc]

Can we also assume that we can deposit Euros or Dollars at any UK Citibank branch?

[theotherdy]

Thanks kevanp - we'll just have to hope they offer it again.

[Singer56]

Which bank gives the best deal on a Business Account?

Sorry if I have posted this on the wrong forum!

JCJ

[daveedson1948]

I have applied this morning (25/02/09) by telephone for this account. However, on enquiring, I was informed that the moneyback deal will not apply as application will take approx. 5 days to complete and acceptance of the application will therefore not be completed by the "deadline" (which Citibank advise as 28/2).

[nzseries1]

Originally Posted by MSE Dan

...(remember it's ONLY for Egg credit cardholders)....

Dan, this appears to be wrong. It says Egg CUSTOMERS, not Egg CREDIT CARDHOLDERS. Therefore, as the holder of an Egg Savings Account, I should be eligible for this.

Forgive me if there's some small print I haven't read somewhere.

[coolforcash]

Originally Posted by daveedson1948

I have applied this morning (25/02/09) by telephone for this account. However, on enquiring, I was informed that the moneyback deal will not apply as application will take approx. 5 days to complete and acceptance of the application will therefore not be completed by the "deadline" (which Citibank advise as 28/2).

If the offer only applies to Egg customers and you applied by telephone how would they know you were eligible anyway (i.e. is it not through the link on the egg website?)? Is there any way you could take the required documentation into a branch to complete the application?

[alexnznz]

Will I be able to deposit leftover cash in euros to this account?
Quite often when I return I end up with a hundred or so euros. It takes ages to find them when I need euros again..

[michaels]

1) I did this offer last year for 100 usd = I paid my partner 100USD on paypal, waited for the account credit from citibank and then refunded the paypal transaction - paypal do not charge you any fees for this so 100 USD all intact.

2) I already had a citibank GBP current account. You only get 1 debit card and have to ask citibank to link it to the correct account each time you want to use the different currency accounts. Main difficulty comes when you fly back from Europe and go and get some cash out at the airport without remeberign to switch the card back to your GBP account and get charged a high out of currency loading.

3) Exchange rate between citi accounts is not competitve any more - you get charged 2.something % over market.

4) I think citi T&C suggest you need to keep a total positive balance of £2k with them or you get charged a monthly facility fee of 20 usd/15 eur for having these accounts

5) I asked whether the promotion was available for both USD and EUR accounts - someone was looking in to it for me but never got back with an answer.

6) There are very few citibank branches in the UK, mostly in London

[thepearce]

After seeing this offer elsewhere on MSE I called citi to ask if there were any charges on the account, and/or if a specific balance needed to be maintained. I was told there would be no charges..... but it would not surprise me if this was incorrect advice.

Waiting to see what Martin/MSE find out from citi about the delay in opening accounts. I had assumed it was instant otherwise I would have done this a week ago.

[MSE Martin]

Originally Posted by nzseries1

Dan, this appears to be wrong. It says Egg CUSTOMERS, not Egg CREDIT CARDHOLDERS. Therefore, as the holder of an Egg Savings Account, I should be eligible for this.

Forgive me if there's some small print I haven't read somewhere.

We've been round the houses trying to find the info specifically on this for the last two days. Officially we've been told cardholders were sent the email, and it only applies to them, but we've seen some literature saying egg customers. However just in case we have gone with the more conservative interpretation.

Martin

[MSE Dan]

Hi folks

After a fun morning on the phone, i have added this into the OP

Important Update 11.24am Wed 25 Feb.
A few people report below being told by Citibank staff its too late to get the applications done in time for this deal. We've re-checked this with Egg/Citbank press office and its confirmed (in writing) that, as long as the postal part of your application reaches it by 27 February, you will be eligible for the free cash offer. So if you want to do this apply ASAP, and consider using registered delivery. Thanks for the feedback though - it's best we're kept on our toes!