Egg Money / MoneySavingExpert.com Discussion Area

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