Egg money card (4%) as savings account?

r2mahara

Egg has closed off new applications for the Egg Money card.

However for those of us who already have the card - I note that they are still paying 4% on positive balances, which is one of the best rates out there now.

Is anyone using this to stash their savings? Any thoughts on pros and cons?

I note that Egg is FSCS protected, so a max pot of £50,000 would apply for safety reasons.

zkw29

I was wondering about this as well. The 4% positive rate is better than the top paying easy access saving account at the moment and the FSCS coverage is reassuring. My only concern is about section 75 coverage: if I pay for something on my Egg Money card when it has a positive balance, am I still covered under section 75?

One of the pro's is the easy access from cash machines or as a card payment

BenL

I don't believe the section 75 protection comes into force if you are in positive balance.

You haven't borrowed any money/credit.

wombler

I just noticed this as well - 4% makes it very tempting to stash a load of cash, assuming that the rate is going to last. I've never used it for a positive balance before though - would it be easy enough to move it elsewhere if they bring the rate down substantially?

tinkerbell84

tibtib wrote: »

I am always very dubious with online style bank accounts, i wouldn't want to put much in to an online site.. much prefer to have my savings in a more secure place!

:rolleyes:

wombler

tibtib wrote: »

I am always very dubious with online style bank accounts, i wouldn't want to put much in to an online site.. much prefer to have my savings in a more secure place!

I believe Egg is owned by Citigroup which is a huge US bank, though of course it was just involved in the largest bailout in history! Even so, savings of up to £50,000 would be covered by the FSCS as previously noted, which essentially means the UK Government is guaranteeing your savings.

BurningSnowman

wombler wrote: »

I just noticed this as well - 4% makes it very tempting to stash a load of cash, assuming that the rate is going to last. I've never used it for a positive balance before though - would it be easy enough to move it elsewhere if they bring the rate down substantially?

I searched on this before putting a little money in mine (until Tesco finally open me an account) and apparently you just manually ask them to BACS it out, via secure message. I think it was a post on this forum.

tibtib wrote: »

I am always very dubious with online style bank accounts, i wouldn't want to put much in to an online site.. much prefer to have my savings in a more secure place!

Explain? I've got more faith in actual encryption than in open phone lines or post, myself, and banks generally take full liability for their own Internet cockups.

YorkshireBoy

BurningSnowman wrote: »

...apparently you just manually ask them to BACS it out, via secure message.

You can transfer it yourself to a current account of your choice...

Egg Money admin=>transfer a balance=>current account overdraft

It may also be possible to transfer out to another savings account directly...I've never tried.

caveman38

Not wishing to be rude, but. There have been 2 posts on this very subject recently. You may find some useful info from them.
BTW I have an EM card and the 4% sure is useful.

caveman38

YorkshireBoy wrote: »

You can transfer it yourself to a current account of your choice...

Egg Money admin=>transfer a balance=>current account overdraft

It may also be possible to transfer out to another savings account directly...I've never tried.

YB I have just transferred -via secure message - a chunk of my EM to ES. What is the chance of getting the 1% (it is correct to do it in February isn't it)
When I say I have transferred it, I can't beleive how slow they are. 3 days to respond to the secure message and then up to another 5 for the transfer. Making it a bit tight for my statement date.
Will I get it?

r2mahara

caveman38 wrote: »

YB I have just transferred -via secure message - a chunk of my EM to ES. What is the chance of getting the 1% (it is correct to do it in February isn't it)
When I say I have transferred it, I can't beleive how slow they are. 3 days to respond to the secure message and then up to another 5 for the transfer. Making it a bit tight for my statement date.
Will I get it?

They are getting a bit slower these days. Usually they transfer my funds within 1 day of sending a secure message - now it's about two days.

As for the cashback loophole, I think Feb is the best time - but I'll let more knowledgeable people like YB weigh in on that one. In the past they've cancelled all my "cashback" as a result of transfers... but it did take them a while to spot it.