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Egg Money - No not that querstion. A different question

I've already decided to use my egg money positive balance as a savings account - in fact I have just started which brings up this question.

If you have a positive balance on your egg card and you use the egg card to make a purchase, the money comes off straight away - i.e. it is debited from the positive balance immediately.

Although I have another credit card, I used to always use the Egg money card for the cashback. But my question now is - should I forgo the cashback and now use the other card? That way I get interest on the amount I owe on my card whilst it's sitting in my current account.

Does that make sense?
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Comments

  • zebedy
    zebedy Posts: 425 Forumite
    I'm deliberating on this question too. Difficult to tell if the 4% in credit interest is worth giving up the 1% cashback.

    I suppose i need to sit down and work out the average spend on the card per month and how much cashback that is generating me compared with the interest I would earn. Hmmm, that's a job for sunday afternoon methinks
    MS Stalwart. Used site for >10 years :j

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  • Reaper
    Reaper Posts: 7,340 Forumite
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    Surely you are much better off spending on the Egg card. You earn 1% compared to 1/12th of 4% lost on your interest free month (or however long the gap is between spending and paying).
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Get the best of both worlds. Take out another 1% cashback card (or long slow-stooz card) for your monthly expenditure and leave your savings alone on Egg Money.
  • Milarky
    Milarky Posts: 6,356 Forumite
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    Reaper wrote: »
    Surely you are much better off spending on the Egg card. You earn 1% compared to 1/12th of 4% lost on your interest free month (or however long the gap is between spending and paying).
    That looks about right - and there's generally 20% tax on the interest too, So 3.2%/12 or 12%/12 [1%] that is the question. The answer is fairly obvious...
    .....under construction.... COVID is a [discontinued] scam
  • marcrp
    marcrp Posts: 23 Forumite
    As I understood it you get 1% cashback on all spending regardless of wether you have a positive or negative balance on your Egg Money.

    So in reality you could look at it as getting 5%.
  • KTF
    KTF Posts: 4,830 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I cant see a reference saying that you wont get any cashback on a positive balance in the T&C: http://new.egg.com/visitor/0,,3_79060--View_1643,00.html

    And the 'holding' page doesnt say you wont either. http://new.egg.com/visitor/0,,3_108938--View_2319,00.html

    The easiest way to confirm would be to contact them and ask.
  • I asked this question on the Credit Card forum and another member says the 1% cash back applies even when you are in positive balance. :T
  • caveman38
    caveman38 Posts: 1,304 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    marcrp wrote: »
    As I understood it you get 1% cashback on all spending regardless of wether you have a positive or negative balance on your Egg Money.

    So in reality you could look at it as getting 5%.

    Except your balance would have been reduced by your spending and won't attract the 4% anymore.
    That's why YB is suggesting another purchases CC for your spending and leaving the balance in tact to attract the 4% without reducing the balance.
    I supose you could keep topping up your EM card by the amount you spend and get 4 +% but that is a lot of s*****g about.
  • mary
    mary Posts: 1,585 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    That's exactly what I do. Come straight in from shopping, takes about 1 minute to transfer from housekeeping account (i.e. joint current account, from where payment would ultimately come) and transfer back into EM.
    Not really a major issue.
  • Muffin99
    Muffin99 Posts: 125 Forumite
    Anyone know what is the maximum balance you can have on an Egg Money card that will earn the 4% interest?

    Thanks in advance!
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