Egg Savings account and interest rate increases advice please

happyhero

Just looked at the Alliance Leicester, natman mentioned above, offering 3.15%, that seems quite good, can't see a problem there as it seems to allow me to withdraw at will which is what I want, and I already have an account with them from old, which is nearly empty.

KTF

If you want monthly interest (the A&L account in yearly) then consider the Citibank Flexible Saver Account Issue 5) which is 3.10% AER but monthly interest.

http://www.citibank.co.uk/personal/banking/saveinvest/saving/fsaver/fsaver.htm?merchant=citi

MiMi

Why close the Egg account? Can't you just move the money out that (in my case) is only paying 2.5% and then put it back in to earn 3.25%. Or is that not counted as new money?

KTF

As long as you move the money outside of egg then back in again then it is new money. If you move it straight from one egg account to another then it isnt.

brewerdave

Its a pain but I moved money from my wifes original Egg account (now paying 1.25%) to my Egg account (originally paying 3.35% - inc VARIABLE bonus,now 2.5% ) - and now I intend to move that money via my current account to a new Egg account in my wifes name!

pete80

KTF wrote: »

If you want monthly interest (the A&L account in yearly) then consider the Citibank Flexible Saver Account Issue 5) which is 3.10% AER but monthly interest.

http://www.citibank.co.uk/personal/banking/saveinvest/saving/fsaver/fsaver.htm?merchant=citi

KTF

Yes,a better rate but EGG is part of Citigroup and Citibank run exactly the same scam.

It wouldn't be so bad if all these banks notified their savers that rates were being dropped and better paying accounts were available. Probably be more of this going on when B of E interest rates start increasing again

Joe_Bloggs

I opened a new 3.25% account today. I still have a 2.85% with a few K.
I do not see this as a scam. It is a marketing scheme that will bring in lots of money. I am sure Egg will try to lend the money at rates far higher than 3.25%
J_B.

pete80

Joe_Bloggs wrote: »

I opened a new 3.25% account today. I still have a 2.85% with a few K.
I do not see this as a scam. It is a marketing scheme that will bring in lots of money. I am sure Egg will try to lend the money at rates far higher than 3.25%
J_B.

Of course Egg will be lending the money at a far higher rate, that is what Banks are there for - to make money, build profits and give shareholders growth and dividends (not this last 18 months though :rolleyes:)

What I think is a scam is that Egg, Citi and many others don't have the decency to inform ALL their customers of interest rate drops, in the same efficient way that they inform them of rate hikes on their credit cards.

It ain't so bad for those of us who can monitor the savings sates online and shift the money easily but what about the poor folk who can't get access to the Net easily (like sick or elderly) and then get a statement once a year showing how much interest they have been conned out of.

An email or a posted letter to each customer is not going to finish off the banks - they just screw their own profits through bad lending and investing in ultra risky derivatives.