Egg instant access now 3.25% (2.00% bonus).

opinions4u

fablad75 wrote: »

I thought of that - but then the account is unused for 4 months while my money is in the other account. I'll only have it for 8 months after that.

Does that matter? If there's a better rate come November then jump in to that and close the £1 one I suggested. But give yourself the choice. It sure as hell beats getting to the back end of the year and moaning "all the instant access accounts pay less than 2% now".

The best thing I did last year was to open an Egg savings account with £1 at 6.3% "just in case". The same logic still applies.

Play that rate tart. It's the only way anybody will get the best returns from banks and building societies.

apt

But the Egg 6.05%/6.3% offer was unique at the time with its combination of a fixed rate plus the ability to deposit and withdraw money at any time. The current offer - variable with a one year fixed rate bonus - is fairly common and although the rate is good, it is not markedly better than what is available elsewhere. It's an individual decision, but I won't be opening one now for my Guaranteed Saver Reward money. The chances are that Egg or others will be offering something as good or better in October/November and it's better to have a bonus that lasts till Oct/Nov 2010 than August 2010.

D1zzy

apt wrote: »

The chances are that Egg or others will be offering something as good or better in October/November and it's better to have a bonus that lasts till Oct/Nov 2010 than August 2010.

Do you know something we don't know?

MarkFromCornwall

natman wrote: »

Thanks for the INFO.
I have just opened it, however at the end it highlighted i could not open it as tehy would need to write to me for further info , dont know what they would want, but hey I will await.

I got that message too and so I was waiting for a letter asking me to send them some kind of identification, even though it's only about two months since I closed an Egg 6.3% savings account. However, today I got an e-mail saying my account is open and I've just successfully paid in a trial amount. Dealing with Egg is so much easier than some other companies.

D1zzy

Anyone know Egg's FP limits?

opinions4u

D1zzy wrote: »

Anyone know Egg's FP limits?

Inwards, they do tend to take 2 hours to show (although I usually deposit by debit card which shows immediately).

Outwards, think of a number below 1p.

KTF

I thought the FP limit was put in place by the sending bank rather than the receiving one?

I normally use debit card to pay in as well because I find that the FP limit varies from bank to bank.

opinions4u

apt wrote: »

The chances are that Egg or others will be offering something as good or better in October/November and it's better to have a bonus that lasts till Oct/Nov 2010 than August 2010.

While I agree with the sentiment, you can open an account now and if it turns out to be a duffer close it in Oct/Nov and open the offering they have then. Choice is everything, why close the door when you don't have to?

There is an appeal in the 2% fixed bonus. This collars the rate. In a low rate environment that is actually quite appealing, becuase if Egg choose to improve profitability they're stuck with paying you 2% minimum and if rates generally move back up, their underlying rate will also increase and have the 2% on top of it.

Savings providers have a clear aim - to attract as much money as possible to meet lending commitment and pay as little interest as possible. These aims can often conflict, and the priorities will change from time to time.

Flows in drive the lending, low rates drive the profits. At the moment Egg (and many others) are clearly chasing flows, presumably to plug wholesale funding gaps. Sooner or later they will want to see profits.

D1zzy

KTF wrote: »

I thought the FP limit was put in place by the sending bank rather than the receiving one?

I normally use debit card to pay in as well because I find that the FP limit varies from bank to bank.

Was thinking of using this as a holding account to wait for better 1 year fixed rate- so the Egg "Out" limit is the concern
-I have a Natwest 3.4% about to die and some fixed rate bonds maturing in October which will need a home

YorkshireBoy

opinions4u wrote: »

At the moment Egg (and many others) are clearly chasing flows, presumably to plug wholesale funding gaps.

I wonder if the additional £50bn injection (announced by the BOE last Thursday) will ease that situation though?