Egg Fixed Rate account and 'new money'?

Milarky

If you have a Fixed Rate Egg savings account and an Egg Money card, it has just occurred to me that transfers of stoozed positive balances EM=>ES may not qualify for the 'new money' rate of 6.3%

(Any thoughts?)

YorkshireBoy

Although not specifically forbidden by the T&C's* (they only mention other Egg Savings accounts), I wouldn't risk it myself Milarky.

Better to BACS out to (or BT from) an external current account and then either send it back via debit card or faster payment same day (would lose only 2/3 days interest?) in my opinion.

It'd be a shame to lose out on that very substantial interest rate differential...for many more months to come.



* http://new.egg.com/visitor/0,,3_108641--View_2306,00.html

knights

As an aside, we are still getting 4% interest on positive balances on 'Egg Money' are we not?

If that is the case it is beggining to look attractive!

Sorry just seen an earlier thred on this subject

Milarky

Thanks YB, the rub seems to be in when the accounts were opened (i.e. before or after the fixed account was opened) and, as you suggest, only refers to two specific 'Egg Savings' accounts and not to Egg Money - a different product.

(It's too late now for a transfer to savings made in August - albeit I drew the balance to zero on the savings account by September thus 'removing' any suspect status against subsequent deposits made in the usual way)

On the 'Pullman method' (if you remain suspicious of the 'New Money' definition not applying) it would be a straightforward matter to use a different Egg account for a transfer to savings (I have two others) or else to open one specifically for that purpose a few days ahead of time...

YorkshireBoy

I think I'm (possibly?) ahead of you. I've been thinking about this since I opened my 6.3% account last summer.

Milarky wrote: »

...I drew the balance to zero on the savings account by September thus 'removing' any suspect status against subsequent deposits made in the usual way)

That may (have to) be the answer to the 'problem' I detail below Milarky.

On the 'Pullman method' (if you remain suspicious of the 'New Money' definition not applying) it would be a straightforward matter to use a different Egg account for a transfer to savings (I have two others)

The 'problem' there is the inevitable question "why are you transferring from an account paying 4% to an account paying 2% when you have another account that pays 6.3% fixed?" Get out of that one! :rotfl:

or else to open one specifically for that purpose a few days ahead of time...

But you're (currently) only allowed one 'introductory rate' special account at any one time. Therefore any other account you open will be a standard 2% paying account...which will again bring about the 'problem' raised above.

In summary, I think we'll have to route through to the 6.3% account, and then empty (all bar £1) and re-fill again to 'reset' the 6.3% rate (to be on the safe side).

Whatever we decide to do, we only have 4-6 weeks to plan and action it. I'm staying below 5 figures (which will 'cost' me £60 or so) and doing a single transaction so as to (try to) remain as inconspicuous as possible (under the circumstances).

(Apologies to anyone reading and wondering what the heck we're on about!)

Lynt_3

YorkshireBoy wrote: »

I think I'm (possibly?) ahead of you. I've been thinking about this since I opened my 6.3% account last summer. :)That may (have to) be the answer to the 'problem' I detail below Milarky.The 'problem' there is the inevitable question "why are you transferring from an account paying 4% to an account paying 2% when you have another account that pays 6.3% fixed?" Get out of that one! :rotfl:But you're (currently) only allowed one 'introductory rate' special account at any one time. Therefore any other account you open will be a standard 2% paying account...which will again bring about the 'problem' raised above.

In summary, I think we'll have to route through to the 6.3% account, and then empty (all bar £1) and re-fill again to 'reset' the 6.3% rate (to be on the safe side).

Whatever we decide to do, we only have 4-6 weeks to plan and action it. I'm staying below 5 figures (which will 'cost' me £60 or so) and doing a single transaction so as to (try to) remain as inconspicuous as possible (under the circumstances).

(Apologies to anyone reading and wondering what the heck we're on about!)[/quote]

That'll be me then.

guli

YorkshireBoy wrote: »

I think I'm (possibly?) ahead of you. I've been thinking about this since I opened my 6.3% account last summer. :)That may (have to) be the answer to the 'problem' I detail below Milarky.The 'problem' there is the inevitable question "why are you transferring from an account paying 4% to an account paying 2% when you have another account that pays 6.3% fixed?" Get out of that one! :rotfl:But you're (currently) only allowed one 'introductory rate' special account at any one time. Therefore any other account you open will be a standard 2% paying account...which will again bring about the 'problem' raised above.

In summary, I think we'll have to route through to the 6.3% account, and then empty (all bar £1) and re-fill again to 'reset' the 6.3% rate (to be on the safe side).

Whatever we decide to do, we only have 4-6 weeks to plan and action it. I'm staying below 5 figures (which will 'cost' me £60 or so) and doing a single transaction so as to (try to) remain as inconspicuous as possible (under the circumstances).

(Apologies to anyone reading and wondering what the heck we're on about!)

Actually you can have more than one introductory Savings account, but must be a different offer, as detailed when I queried by messaging. Here is their reply when I asked about chapter 11 of the conditions:

" You're quite welcome to apply to open a new Savings Account <referring to the 6.55% account>. What chapter eleven of the special conditions means is that you can't open two sole accounts in your name under one offer. As this is a new offer, separate from the Introductory rate you're receiving on your existing account <referring to the FR 6.3% account> , you're eligible for the new account.

To apply you just need to click on the "Apply" tab which is just about the "Your Money" tab.

If you'd like any further help, please don't hesitate to contact me.

Thanks for your message.

Regards

xxxxxxx
Internet Customer Services

"


Regards

YorkshireBoy

Thanks guli,

The 'delicate' situation remains though, except now we're moving from 4% to 4% (when we could move from 4% to 6.3%), assuming both rates stay the same of course.

guli

Hi Yorkshireboy,

I, however, do not see it as a delicate situation at all. It's your money, you surely can do anything as you deem fit. For example:

1) Some people could have broken their fixed rate 7%+ Kaupthing Edge account to deposit into "secure-er" bank accounts like Northern Rock
2) Some people could also have deposited money into a lower interest Cash ISA when they could have fixed it at, for example, Halifax Guaranteed Saver Reward
3) Some people could have overpayed their +0.23% tracker mortgage just to see it have a lower remaining balance, rather than keeping the money in a higher interest rate bearing savings account and overpay at a later date when mortgage interest is higher than savings interest.
4) Someone people could have transfered money to a joint savings account (say, Egg Savings 4% where other account holder is non tax payer) rather than keeping a positive balance in Egg Money.

Pullman's method is worth a try.

You don't really have to "justify" what you do with your savings to the bank/customer services. Unless it's for money laundering purposes, of course.