Egg Money 4% Credit Interest - Savings Limit?

mini_cooper

Just wondering, after the lastest bank rate cut if there is a limit that can be added to the Egg Money account.

I currently have a Barlcays BOE tracker (BOE + 0.74%) and £35K in savings being offset. Can I transfer this amount to Egg to get 4% as I do not wish to tie the money up and will need instant access if BOE rates start to rise.

Thanks

withnell

Max balance is 99,999.99

The_Architrave

It's 4% gross though, so of less value if you're a taxpayer.

jonesMUFCforever

...........But much better than 90% of instant access accounts out there in the market.

thepearce

I was looking at doing this too..... but have only ever had a little in credit. Is it easy to get the cash back if I need it?

Also - where do we stand with section75 protection if the account is in credit?

chris-j

Section 75 should equally apply - it is still a credit card which happens to pay interest on credit (or is that debit) balances. You could preload any credit card so they could owe you money - Egg Money pays interest others do not but doesn't change the fact its a credit card.

Be prepared for quick move back though as Eggs actions on increasing rates this week look to be a pre-emptive move to remove this card from market - if enough people cancel card they could pull the plug saying there are insufficient customers to justify retaining Mastercard. Having stopped new customers looks to me like this is what they are heading for).
At present most balances are probably clear or owed to Egg therefore rate is not a big issue to Citibank but if lots of people move money into Egg Money card this could cost Citi a lot of money and watch the rate tumble and card end up withdrawn - we'll all get a higher rate Egg Visa card offered no doubt.
Sorry for cynical view but Egg are a far cry from what they started as.

financial_warrior

chris-j wrote: »

Be prepared for quick move back though as Eggs actions on increasing rates this week look to be a pre-emptive move to remove this card from market - if enough people cancel card they could pull the plug saying there are insufficient customers to justify retaining Mastercard. Having stopped new customers looks to me like this is what they are heading for).
At present most balances are probably clear or owed to Egg therefore rate is not a big issue to Citibank but if lots of people move money into Egg Money card this could cost Citi a lot of money and watch the rate tumble and card end up withdrawn - we'll all get a higher rate Egg Visa card offered no doubt.
Sorry for cynical view but Egg are a far cry from what they started as.

Completely agree. The rate increases announced this week and the withdrawal of the card from sale are clear indications that other benefits on this card will not be maintained. I will bet my bottom dollar that if they experience a surge in deposits, they'll reduce the rate on positive balances.

Some would call it cynicism, others would see it as a fair appraisal of a company now a shadow of its former self.

jonesMUFCforever

I would see it as a prudent business decision based on what others are paying interest on deposits.