Egg Money stopping in-credit interest

potfish

From 24 April 2009 the interest rate you receive on positive balances will reduce from 4% pa/AER to 0.5% pa/AER and from 15 May 2009 interest will no longer be paid on positive balances.

nzseries1

No interest at all? That's harsh! What a sad day for Egg Money cardholders

Jazzking

nzseries1 wrote: »

well they're not "stopping" in-credit interest like you say, they're just reducing it by a large amount. a sad day for Egg Money card holders.

EDIT: whoops, didn't read it properly... no interest at all? That's harsh!

The new price protection insurances sound good though, definitely worth keeping as a main spending card and the 1% cashback is still there... wonder when they'll re-open applications for my OH

Paul_Herring

In addition:

Cash advance fees
From 15 May 2009 cash advance fees will apply.

So not much point in having a positive balance anyway.

OxfordRob

To be fair to Egg it was only a matter of time before they put the boot into the 4% on those using it as a savers account and like JazzKing points out... At least the 1% cashback still lives on. At the end of the day use it to make all your purchases just make sure that you pay it off in full at the end of each month to reap the maximum benefit. The insurance extras is nice.

I have always used mine to pay for everything get the cashback and keep my pay check in a high interest account and only pay the Egg back at the end of the month. It all adds up

dlouis_2

It's worse than that. They are going to start charging for cash advances.

"7.2 We will charge a handling fee of 3% (minimum £3) of the amount of each cash advance."

The point of this card was it was good for budgeting. I have been putting my spending money on it each month, earning 4% on that, and withdrawing cash whenever I wanted. Better than a debit card because if I ever went into the red, I just paid the full balance each month and was charged no interest.

The card is now just like any other, apart from the 1% cashback. I'm gutted.

terafarma

potfish wrote: »

From 24 April 2009 the interest rate you receive on positive balances will reduce from 4% pa/AER to 0.5% pa/AER and from 15 May 2009 interest will no longer be paid on positive balances.

Not hard to figure this out in the present climate. Our modern day (MSE) Nostradamus, (Yorkshireboy) saw this coming a few months ago in one of his posts which I'm unable to dig out but remember quite vividly.

In any case, the card now to be known as Egg Money World Mastercard is still worth keeping for the 1% cashback on purchases for those who still have it.

nzseries1

dlouis wrote: »

It's worse than that. They are going to start charging for cash advances.

"7.2 We will charge a handling fee of 3% (minimum £3) of the amount of each cash advance."

What scares me is,

What about those people who have £50,000 savings stored on their Egg money card, and lets say they get this email but for some reason ignore it (or perhaps their spam filter removed it), and then 2 months later they try and withdraw their savings and find that Egg charge them £1,500 for the privilege? There will be rioting in the streets !!! :cool:

steveandel

It was always going to come. They're not gonna continue to pay 4% when the base rate is so low. I'm glad because I thought they were going to scrap the 1% cashback as well.
They're also intriducing some new features:

A range of new insurances
We're adding some new insurances as standard, effective from 15 May 2009. These are all designed to offer extra protection on the things you buy:


Price promise – buy an item using your Egg Money card anywhere in the world and if you find it cheaper within 30 days, we'll refund the difference.
Extended warranty – use your card to buy any electrical item and get 12 months' additional warranty after the manufacturer's warranty expires.
Purchase protection – buy items with your Egg Money card anywhere in the world and you're covered against theft, loss or damage for 90 days after purchase.
Event cover – book event tickets using your Egg Money card and you're covered if you're unable to attend.

They all sound pretty good to me, especially the first, second and last one, although we'll obviously have to see the t&c's first.

Froggitt

nzseries1 wrote: »

What scares me is,

What about those people who have £50,000 savings stored on their Egg money card, and lets say they get this email but for some reason ignore it (or perhaps their spam filter removed it), and then 2 months later they try and withdraw their savings and find that Egg charge them £1,500 for the privilege? There will be rioting in the streets !!! :cool:

Huh? They cant charge for withdrawing a positive balance can they?

Sad day for Egg Money Card and 4% interest.

We also know that only a small percentage of our customers keep a positive balance on their account

So why not leave it alone as its not costing you much? Or is that a blatant lie?

nzseries1

Froggitt wrote: »

Huh? They cant charge for withdrawing a positive balance can they?

I never got the email as I'm not actually an Egg Money cardholder (just a big fan), but I assumed that there was already a Cash Advance fee for withdrawing cash on a negative balance...

Are you telling me that until now, Egg Money holders were allowed to withdraw money from their Egg Money card without fee even if it had a negative balance?