Put your Egg Money Card in Credit and get 4% AER

DocProc

Question:

Date: 03 Mar 2009
Subject: Using the Egg Money Card for Savings

Hi Egg

I notice you are paying 4% for positive cash balances on this card and I am considering taking advantage of this.

I note you charge 3% for a cash withdrawal but, in spite of this, I think I still might be able to make benefit from the facility.

Do you have any notes anywhere on your web site about using the account like this?

How does the positive balance affect the card usage? Do you take the balance immediately to pay off card usage?

Will the 4% interest for positive cash balances rate on the Egg Money card change along with the other rate changes on the 6th March?

I look forward to your reply.

Regards
XXXX

Reply:

Date 5th March 2009 Time: 11:16am
Subject: Using the Egg Money Card for Savings

Dear XXXX

There is no fee for withdrawing cash if you have a credit balance.

You can find more information about the Egg money account by clicking 'view' next to the balance and then 'credit agreements' on the left hand side of the new page.

If you use the card the transactions will come off the credit balance before putting you into a debit balance.

At the moment the interest rate on positive balances is 4% gross pa/AER (variable) on positive balances. There has been no communication that this will change at the moment. We would make you aware if this was to be the case.

Please let me know if you need any more information.

Regards

Laura Kinsey
Internet Customer Services
Egg Money
.................................................................................................................
The Egg Money Card is a product which comes under Egg Banking PLC.

Egg Banking PLC is covered by the Financial Services Compensation Scheme up to £50,000 per customer.

Egg Banking plc is a wholly owned subsidiary of Citibank International plc. Citibank International plc is authorised and regulated by the Financial Services Authority. FSA reference number 122342. Registered in England number 1088249. Registered Office: Citigroup Centre, Canada Square, London E14 5LB. VAT Number: GB 429 6256 29. Ultimately owned by Citigroup Inc. New York USA.
..............................................................................................................

Using the following criteria for choosing an account:

Initial deposit : £50,000
Regular deposits : No
Taxable : Yes
Notice : None
Accounts available to : All

and the FSA Customer Tool at

http://www.fsa.gov.uk/tables/bespoke/SavingsAccount

the next best savings account yields a mere 3.5% AER and is available from Ulster Bank with their eSavings Plus account.

So it looks like it might be worth a try.

Any thoughts anyone?

Jennifer_Jane

There have been other threads about this. And current Egg Money card holders seem to have been well aware of this for a long time. I understand, however, that the card is no longer open for new business.

Jen
x

Nick_sub

Yes, I noticed that it was still 4% a while ago and saw that other peopel here had the same thoughts. It's as if Egg have forgotten to reduce the rate and it's covered by the FSCS (someone specifically asked Egg this) so it looks good, althought I haven't used it for savings yet.

Reaper

This gets "discovered" about twice a week :rolleyes:
Here's yesterdays
http://forums.moneysavingexpert.com/showthread.html?t=1536315

foofi22

DocProc wrote: »

I note you charge 3% for a cash withdrawal but, in spite of this, I think I still might be able to make benefit from the facility.

I don't think this would apply on a positive balance.

Jennifer_Jane

There's no charge for moving money about, only for a Balance Transfer. You just need to be clear about that. I move money in and out of Egg Money to either Egg Savings or one of my current accounts all the time. No charge. Just don't phone and ask for a Balance Transfer.

Jen
x

Proactivity

Reaper wrote: »

This gets "discovered" about twice a week :rolleyes:
Here's yesterdays
http://forums.moneysavingexpert.com/showthread.html?t=1536315

I did a search for any mention of it before I posted, and was surprised it didn't seem to have been picked up by other people. I'm less surprised that it has. Ah well *shrug*

apt

These repeated new posts pointing out that Egg Money still offers 4% interest on positive balances might serve a purpose if the account is open to new customers. But it isn't, and the current interest rate stares existing customers in the face everytime they go online to check their Egg Money statement.