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Egg Money / MoneySavingExpert.com Discussion Area

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Hi guys, this discussion relates to the new Egg Money product. Martin's analysis is in the Best Cashback Cards article

See full analysis.

Click reply to discuss.
Former MSE team member
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Comments

  • charlie12
    charlie12 Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Might be worth merging with this thread? Lots of discussion about this card in there.
  • Reaper
    Reaper Posts: 7,353 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    plus a special promotion of 2% return between November 16th and December 10th

    Is that correct? Their web site suggests something starts on the 16th September, not November, and I had assumed it was the 2% cashback?
  • charlie12
    charlie12 Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I think they "officially" announce the 2% cashback on 16th Sept but the actual offer starts on 16th November.
  • Clariman
    Clariman Posts: 1,484 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It is definitely 16th November for 2% cashback.
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    The tables in the article mention egg as 0.1% cashback ! This has now become misleading. According to Martin the Egg Money effort does not qualify for section 75 of the 1974 Consumer credit act and behaves like a debit card whether in credit or not for purchases over £100. Can someone sort this mess out ?
    J_B.
  • Reaper
    Reaper Posts: 7,353 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Joe_Bloggs wrote:
    According to Martin the Egg Money effort does not qualify for section 75
    No, he said it does qualify for section 75. See this post.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    @Reaper Wow ! That is great news ! I shall apply today. I don't know why I got the wrong idea. I'm sorry if I put anyone off.

    The only good thing left about a debit card is that you can pay your credit card with it at the last minute.
    J_B
  • In Martin's article he says:
    The best way to use this account is as a Cashback card that you can front-load i.e. put all your spending money on it at the start of the month then, assuming you maintain a positive balance or clear any negative balance within the 50 day interest free period, you’ll earn interest on your cash and get rewarded for spending it.

    But then goes on the point out that the 4% interest can be beaten.

    But surely equally important is the fact that if you pre-load the account, you don't get any benefit from an interest free period.

    For example, if you put in £400 a month, and then spent £100 per week (assuming 4 weeks per month), you'd get 4% interest on £400 in week 1, 4% interest on £300 in week 2, 4% interest on £200 in week 3 and 4% interest on £100 in week 4, so on average 4% interest on just £250.

    Whereas, if you kept the £400 in your savings account, paying more than 4%, you get the interest on the full £400 for the whole month, and part of the next month, due to the interest free period.

    I really can't see why Martin says front-loading is the best way to use this card. It seems to me the best way to use it is as a traditional spend and pay-off-in-full cashback credit card, unless someone knows different?

    Given that I've heard some people have had problems getting the Conrad card (as it's an MBNA one), then I'd have thought Egg Money is the joint best non-Amex card.

    Best wishes,

    Detail Merchant
  • I really can't see why Martin says front-loading is the best way to use this card. It seems to me the best way to use it is as a traditional spend and pay-off-in-full cashback credit card, unless someone knows different?

    Isn't that what he anyway means when he says the following:

    "However, while this system is competitive and helps keep things simple, it is beatable. Use the best cashback card, and pay it off in full from Alliance and Leicester’s* 5% interest-paying current account and you’ve cracked it."
    It's always the grass that suffers, irrespective of whether the elephants are fighting or making love !!!
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi folks,

    I accept your note about "why martin is saying 4%". Truth is I was thinking that most super-tarts would be using a cashback and a&l so the more lazy option was egg, thus pre-loading was safer, but i think you're right i need to be more explicit.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
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