Egg Money Cashback on positive Balance?

M_Thomson

Hi,
I have just got an Egg Money card. Can someone tell me if you still get cashback of 1% on spending even if you have a positive balance?

Joe_Bloggs

I would say yes. You can get greater purchase discounts in certain retailers. You also get 4% gross interest per annum on the positive balances. Last month I made £0.01p in interest.
J_B.

sicker

It's almost like 5% back on all your shoping. Preload your card and get 4% on the positive balance and get 1% back in March on all you spend. Can you do any better??

John

YorkshireBoy

sicker wrote:

Can you do any better??

Yes, use it like an ordinary credit card, and keep your money with A&L.

The most cost-effective way is to pay the full payment from A&L current account (paying 5%), after first transferring it from your OS2 account (paying 5.15%).

This way, you'll make a full 28% more interest than pre-loading your Egg Money card with a +ve balance.

pennymakespounds

we've just got our 18 year old son to get one.

great to start building up a good credit history.

1% cashback on everything ..all of the time regardless ( expect they may again repeat the prexmas 2% special offer)

also check on their site for favoured retailers where there are cashbacks of up to 20%.

4% interest on any positive balance ...which really is more or less as good as you can get anywhere

hole in the wall cash withdrawals at no charge.

our son has moved all his savings on to it and is using it for all of his purchases.

we believe this really is a great product.

grumbler

sicker wrote:

Can you do any better??

I can. I just keep money in 5%+ easy-access account and pay full balance by DD. I get 1% on purchases and 25 days (on average) interest-free period on purchases - further 0.3% gross. I don't see any point in preloading Egg Money.

sicker wrote:

It's almost like 5% back on all your shoping.

Absolutely not. Even if you preload full annual spending you get 1% cashback plus about 2% gross interest. If you preload monthly spending you get 1% cashback plus about 0.3% gross interest.

YorkshireBoy

pennymakespounds wrote:

4% interest on any positive balance ...which really is more or less as good as you can get anywhere

I agree with the rest of your post - but not this statement.

4% is an absolutely terrible rate, and can be beaten by dozens of providers. I don't have any accounts paying less than 4.5%.

pennymakespounds

grumbler/yorkshire .. accept what you say ... thought after i'd posted that i'd get jumped on !!.

i should have added .....

for teenage son who has been given credit limit of £600 and at best would have £1500 savings...with earnings from saterday jobs etc ... birthday/xmas monies .. bits of ebay monies .. etc .. everything being chanelled through the egg card.

the differrence between egg and others savings rates at best would be £15 to £20 a year.... ...

but he is able to spend up to £2100 .. earning the 1% cashback... .. up to 12 times over in a year ......or more if he makes payment mid month.

he was able to spend up to £2100 pre xmas and get things like 10% off at currys and 10% off at selfridges ... more than negates the £15/£20 loss of interest.

it saves having another account and all relevant paperwork / admin etc ...

and by "spending lots" (and repaying at end of month) on his egg card it is doing his credit scoring the world of good .... egg will soon start increasing his credit limit ...he'll get other offers and 0% offers quicker than normal ...

etc etc .

think this one .. particularly for a youngster is a case of looking at the "bigger picture" first.

certainly looks good to me compared with all of his mates who have maxed out credit cards paying obscene amounts of interest and screwing up their credit score for many years to come.

sicker

Yorkshireboy, my A&L account reverts to a very low rate after £5000 so I still thing Egg Money is as good and more convienent. And I have been with A&L for 34 years, all the way from girobank but have lately been scunnered by their cc association with mbna.

John

david78

grumbler wrote:

I don't see any point in preloading Egg Money.

Whilst I agree there are exceptions. I just pre-loaded my card by doing a balance transfer from a new 0% card (i.e. stoozing).

I don't want to leave the money on the card though so I will be telephoning them to move the money to my current account (and I will then move it to my A&L online saver account.)

Notice, I will be telephoning them to do the balance transfer to my current account. I can't use the on-line facility because my credit limit is lower that the amount I want to transfer.

The last time I did this, Egg gave me cashback of 1% of the balance transfered to my current account . I don't know if they will give this now though .

HGLTsuperstar

david78 wrote:

Whilst I agree there are exceptions. I just pre-loaded my card by doing a balance transfer from a new 0% card (i.e. stoozing).

I don't want to leave the money on the card though so I will be telephoning them to move the money to my current account (and I will then move it to my A&L online saver account.)

Notice, I will be telephoning them to do the balance transfer to my current account. I can't use the on-line facility because my credit limit is lower that the amount I want to transfer.

QUOTE]

but you now have a positive balance, so your CL (i.e. the max negative balance you're allowed on the Egg card) is irrelevant.