Egg savings

margaretclare

Egg and Prudential are owned by Citigroup which is American. I have some savings with Egg.

Any information about Citigroup would be welcome - their long-term solvency?

Caudle

Citigroup is said to be the world's largest financial organisation.

If that goes down, everyone's in trouble!

I've just opened an Egg account actually. I am transferring money from my now dormant accounts with KE, ING and FirstSave to it.

Egg used to be owned by Prudential. It's fully covered by the FSCS of course and I would guess the government would treat it like a UK bank.

Masomnia

Yup just opened one myself, 6.3% fixed for a year. I doubt it'll be available for much longer given the rate cut announced today.

Go for it! Is my advice to you good people here.

Lynt_3

I started a thread asking same question earlier today. I've been with Egg for a number of years, but you can't help wondering about their safety in these times.
Good to hear others are 'relaxed' about Egg (citigroup)
I have transferred funds from my old account over to the new 6.3% account. Interest rate wasn't anything to get excited about, so nice to have a chance to earn a bit more.

Some very large US financial institutions are/have been in trouble. Hopefully citigroup won't suffer same.

Milarky

This account is instant-access, remember. You only need to open it with £1 (and even a nil balance if you are an existing Egg customer) to give you a guaranteed rate for 12 months and you can then take your ease about how much you move there and how long you leave it. Very easy account, still available, but for how much longer?

Wibble

Masomnia wrote: »

Yup just opened one myself, 6.3% fixed for a year. I doubt it'll be available for much longer given the rate cut announced today.

Go for it! Is my advice to you good people here.

Yep - I thought that too and have just opened one. I already had an Egg account (with very little in it) earning just 4.75%, but there was no problem opening another savings account and it only took a few minutes.

6.3% fixed for a year for an instant access account is very good given that rates are likely to drop fast.

Lokolo

Wibble - the t&c say you cannot put money from original savings into fixed. how did you do it?

I was tempted to close normal savings account down and put all money in my current account. Then just transfer it back into fixed savings. But not sure if that would work.

margaretclare

Thanks for all responses. I know that the Egg rate is 6.3% fixed for a year. I hadn't planned to leave it there that long - the money will go into my YBS e-ISA next April. I've maxed out my ISA for this tax year.

The money was in a stocks-and-shares ISA and I pulled it out a couple of weeks ago. I've lost money on it, but not as much as I would have done if I'd left it until today!!!!

I just have not got enough time left to 'ride out' this storm, as far as the equity markets are concerned, but equally, I wasn't tempted by the high rates offered by Icelandic and other foreign banks. I still think that the saying 'if it looks too good to be true it probably is' remains a good precept.

I was just concerned about the long-term solvency of Citigroup - as others have said, where to go next.

morg_monster

I have 25k savings in an egg saver (the 6.3% one) and 4.5k in the 6.05% ISA. I am really happy that this money is in safe hands. It was planned that Citigroup would take over the US bank Wachovia which was struggling a bit (nb - it didn't fail) and that would not have been possible / a good idea if citigroup were even slightly wobbly. (not sure who is going to take over wachovia, as another US bank is trying to muscle in too)

Egg stopped doing mortgages recently; so in that respect at least their loan/savings sheet should start to look healthier. (not that I am saying there is/was anything wrong with it!)

Comfortably_Numb

Lokolo wrote: »

Wibble - the t&c say you cannot put money from original savings into fixed. how did you do it?

I was tempted to close normal savings account down and put all money in my current account. Then just transfer it back into fixed savings. But not sure if that would work.

I opened one a couple of weeks ago, and transferred £150 from an old Egg account I had, and it went straight into the new one. I wondered whether it would, having read the terms, but they've never questioned it, and it's still in the new one. I've since closed the old one too.

Lynt_3

Lokolo wrote: »

Wibble - the t&c say you cannot put money from original savings into fixed. how did you do it?

I was tempted to close normal savings account down and put all money in my current account. Then just transfer it back into fixed savings. But not sure if that would work.

They seem to have changed their minds, and present customers can transfer fundsto new account. Takes just minutes. No need to transfer to your current account.