egg money scraps 4% interest from april 25th

bilbo_2

egg money scraps 4% interest from april 25th

Find out more about the changes:
http://e-mail.egg.com/a/tBJ5cxNAcPxCHB7gattAQgk3pG7/egg2

Read the full Egg Money terms and conditions:
http://e-mail.egg.com/a/tBJ5cxNAcPxCHB7gattAQgk3pG7/egg3

:mad:

Robert_Sterling

Not a surprise.

Moggles_2

I'm surprised it's lasted this long, tbh. The writing was on the wall, once Citi took over the operation.

At least you can still create a positive balance and use it to route funds from a credit card to your current account

jago25_98

1) EggMoney no longer on the Egg site earlier this month. Not sure if new applications will continue to be accepted

2) Charges for cash advances in positive balance (beware! this is going to hit a lot of people who didn't notice, thank goodness I read the t&c's changes!)

3) Interest on a positive balance will be coming to an end

All due to takeover by Citibank.

But:
- It will remain useful for transferring balances like the Post Office card

It's a bummer because EggMoney was the only card that didn't encourage debt. That's why it's the only credit card I'll accept (less so for the stoozing).

So it's back to debit cards for me

Money_saving_Martyn

You beat me to it!

Here is the info they sent me by email:

[FONT=Arial, Helvetica, sans-serif]The changes, at a glance

Interest on positive balances
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. Because of this, Direct Debit payments will only be taken when you have a negative balance.

Interesting to note, however,

"[/FONT][FONT=Arial, Helvetica, sans-serif]In terms of the changes; and because we know that most of our customers use their Egg Money card for spending we've made sure our highly competitive 1% cash back offer remains and we've added a new range of insurance benefits."

It's not all bad!
[/FONT]

financial_warrior

We also know that only a small percentage of our customers
keep a positive balance on their account. This, and
reductions in the Bank of England base rate, are factors
in our decision to make changes to the interest paid on
positive balances

... and these same factors are why we've INCREASED the APR on a negative balance :rotfl:

financial_warrior

Full terms, conditions and EXCLUSIONS for the above insurances will be provided to you by 15 May 2009.

I can't wait for this 50 page list to drop through my door!

Paul_Herring

financial_warrior wrote: »

I can't wait for this 50 page list to drop through my door!

You could always print the 49 page version of differences that were emailed....

magicrichard5

Nevertheless, I thought their new insurance options looked really quite good. I'm not up to speed with the rest of the market though - are these fairly standard across the industry these days?

For anyone who hasn't seen it, here's the list in the email..
[FONT=Arial, Helvetica, sans-serif]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.

Price promise looks good to me?
[/FONT]

CopperPlate_2

I wonder if this is going to be re-launched to the general public again after the 15 May? Why go to the bother of re-branding it as a World MasterCard if they aren't intending keeping it alive for the future; and why go to the bother of introducing what appears to be some decent types of insurances? Just a thought.

Seems that they've killed off the 'hybrid' idea of the Egg Money concept by removing the positive aspects of carrying a positive balance, i.e. free ATM withdrawals when in credit, DD top ups each month, and credit interest. Just a plain old credit card now really - it'll be interesting to see whether they revise the paltry credit limits the insisted giving people when they took the cards out on the basis that 'it wasn't intended to be like a normal credit card'?

CopperPlate_2

I thought the insurances looked ok - but if you go through to the terms, etc you see that the price promise doesn't cover internet purchases, the purchase protection minimum level is set at £75, etc, etc, so at first glance it looks good but there are a number of caveats which might not make it as good as it first seems. Wonder if they're keeping the in-transit protection cover?