Egg Money Interest Rate Hike

Snuggles

Just had an email from Egg to say the interest rate on debit balances on my Egg Money card is being increased from 7.4% to 12.9% from September.

Has anyone else had this? I'm wondering if it's a blanket increase for everyone, or if it's targeted? Strangely enough, I have recently paid off a £2000 balance which I had on this card.

a&akay

Same email and I pay the balance off every month after spending £500 on average per month.

Baz_2

Yep same email, I pay the balance in full every month and spend anywhere between £100 and £900 per month, on average £200.

geraint83

I just got the same message.

I ususally spend around £400 a month (with a £600 limit - hasn't been increased since my student days!) and pay it off in full - this change won't really affect me because of this but in principle it's a substantial increase!

YorkshireBoy

The typical rate for new customers is now 12.9% APR, according to the Egg website...

http://new.egg.com/visitor/0,,3_78868--View_1636,00.html

Since existing customers are usually informed first (and around 1-2 months beforehand) one has to assume this was a hurried decision by Egg (Citigroup). Maybe they're feeling the pinch...more so than before?

djm1972

Same here, but also a 1% reduction on the APR of my normal Egg Card (Visa).

Snuggles

geraint83 wrote: »

I just got the same message.

I ususally spend around £400 a month (with a £600 limit - hasn't been increased since my student days!) and pay it off in full - this change won't really affect me because of this but in principle it's a substantial increase!

It certainly is quite a hike, but I'm glad to know it's not just me!

briona

I've just had the same email! Raised my interest rate from 7.9% to 12.9% from September. :rolleyes:

And what a coincidence that this hike would come at a time when I have reduced my spending on that card from around £700pm to less than £100! But of course since I pay it off in full each month, they don't make a lot out of me! Oh well, 12.9% is still lower than many cards out there!

mrke

Yes I have the same email. 12.9% (16.9% cash advance)

kuohu

Same email here. Monthly spend about 600 GBP, always paid off in full at the end of the month.

CopperPlate_2

Same email here. A 5% hike is a bit steep from 7.9 to 12.9!!

Wonder how long it will take them to consider cutting the cashback to 0.5%...