Massive Egg Money Card Changes

Devo

Apologies if this has already been highlighted, but I searched and couldn't find anything...

Had an email from Egg outlining a plethora of changes to my Egg Money card. It looks as though this card isn't quite going to be as amazing as it once had been.

Changes are as follows:

We wanted you to know that we're changing Egg Money and as part of this we're making amendments to your account features and its terms and conditions.

First off we need to tell you that on 15 May 2009 Egg Money will become Egg Money World MasterCard. This does not alter anything in terms of the current rate you pay, your account number, or your PIN. Secondly, as we're not sending you a replacement card just yet, you can carry on using your card just as you do now.

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. 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 – please see below:

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. To find out how to transfer a positive balance please click here

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.

Full terms, conditions and exclusions for the above insurances will be provided to you by 15 May 2009. We will contact you when these are available.

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

KellyWelly

I've got an Egg card - I can't see how it's going to be any more rubbish than it already is - the only thing is that they won't be paying interest on a credit balance? Or am I missing something? The standard insurances sound quite a good deal.

Devo

Do you have an Egg card or an Egg Money card? The biggest difference is that they are now going to start charging you to withdraw cash.

Broadwoodboy

Will we still be able to use Egg Money as a mule?

Devo

Broadwoodboy wrote: »

Will we still be able to use Egg Money as a mule?

Not if they start charging cash advance fees...:(

Eydon

Yes you will - it's been discussed on other threads.

The cash withdrawal fee is just that - a fee for withdrawing cold, hard cash from an ATM. You will still be able to use the card as a mule to transfer money into your current account by using Eggs online service.

EDIT - from the new T&Cs

Dealing with your positive balance
Whatever the amount, you can access it easily.
Withdraw it
You can use our cash withdrawal facility - subject to a daily limit of £500. After 15 May 2009, all withdrawals will incur a fee of 3%, minimum £3.
Use it
One of the easiest ways is to spend the positive balance by simply using your card. That way you’ll also benefit from the 1% cash back and after 15 May 2009, the reassurance provided by the new range of insurances included as standard.
Transfer it
If you've got a positive balance of £100 or more you can transfer it to your current account. You can do this by logging in to 'your accounts' and selecting your Egg Money account. From there, select 'Egg Money admin' followed by 'Transfer a balance' from the list of options. Then select 'Current account/overdraft' and provide the bank account details into which you wish to transfer the balance. No balance transfer fees will be incurred.
Positive balances of less than £100 can't be transferred online. To arrange a transfer please send us a secure message which includes the sort code and account number of where you want the funds sending along with details of the amount you want to transfer.

AjP_3

Still it doesn't really cater for those who actually use it as its supposed to be used, for budgeting. Does anyone know of any similar products are am I going to have to open a second bank account?

Paul_Herring

AjP wrote: »

Still it doesn't really cater for those who actually use it as its supposed to be used, for budgeting.

Erm - yes it does. The only difference is you're not going to get any interest on in-credit balances - like most current accounts these days.

See the post before yours

Dealing with your positive balance
Whatever the amount, you can access it easily.
[...]
Use it
One of the easiest ways is to spend the positive balance by simply using your card. That way you’ll also benefit from the 1% cash back and after 15 May 2009, the reassurance provided by the new range of insurances included as standard.

Tiddlywinks

I haven't had an e-mail from Egg about changes to Egg Money - could I have a virtual show of hands from other card holders confirming (or not) whether they have had this message.

I have also logged on and haven't any secure messages.

I have a credit balance on this card and would hate to see the 4% interest disappear.

Thanks

Tiddly

clio

Tiddly
could of ended up in your junk mail folder. I had 1 2 weeks ago.

kar999

I hadn't long moved a fair chunk of my savings onto this card to get the 4% AER (Gross). I knew it was too good to be true.

Going to to have to transfer it back out now......