egg savings account loophole

~Chameleon~

ought wrote: »

Oh. Is Egg even a safe bet at all. I have just read:
"Do you have money in Egg?

They are owned by Citigroup (they bought the poorly performing Egg from Prudential for around £575 million in 2007)who have been downgraded and are currently listed on Fitch ratings system as a negative outlook. Should you worry more about that than the Icelandic banks?"

:eek:

I certainly hope they're ok as that's where my stoozepot is stashed! _pale_

Should I be worried?

JimmyTheWig

Who knows who is safe?
Just make sure you stick to the £50k limit.

JimmyTheWig

JimmyTheWig wrote: »

Note that this rate is still available according to egg's website, despite the cut in the base rate yesterday.

It's now gone.
Though it has been replaced with a 6.55% variable rate account. Again this will drop significantly after a year.
Is 6.55% variable better than 6.3% fixed these days? I don't know.

919er

Josepina wrote: »

Thats what I did, transferred £10K from 4% egg to current account then 2 days later back into 6% new egg account.
I assume the interest will be 6% but I'll keep an eye on it.
Only problem is interest is annual?

Well I have done this too. I opened the account with a significant amount of "new" money. I then transferred some from my old Egg account (4.75%) via my Currant Account to this new fixed (6.3%) account.

Now Egg have slashed their basic rate to 3.25% I'm going to transfer the rest via my Currant Account to the fixed account.

The T&Cs prevent you from transferring direct (ie. not new money) but I don't see how they can stop you withdrawing money from one account and depositing in the other. Who's to prove whether it's new money or not? Are they going to watch one account with another and say an amount withdrawn from the 3.25% account will not earn the 6.3% in the other account.

I'd be interested if anyone thinks this is what they'll do? Particulary without making this clear. Probably illegal!

I'm sure this new money thing is only a block on transferring between Egg Accounts direct. Isn't it?

Mr_K

919er wrote: »

I'm sure this new money thing is only a block on transferring between Egg Accounts direct. Isn't it?

The 'new money' clause just stops you transferring directly between Egg accounts. The way round is to go via your nominated linked account. I've done it and confirmed I'm getting 6.3%.

nzseries1

919er wrote: »

via my Currant Account to the fixed account.

Currant account? Sounds tasty!!!

JimmyTheWig

Surely egg must know people are going to move money in this way. Surely it would be better for them just to allow transfers from egg accounts?
I don't see their problem with it.