The egg 5.5% savings account *need help*

dean_ham

Need help again ::) im young and im unclear on something.....

INTEREST.....

I opened the egg account last month with a deposit of £2000.

The idea was every month whatever money i had left in my current account at the end of the month(on average £200-400) i will transfer to my egg account.

BUT....

I will need to take out roughly £1000 for car insurance at the end of april....
- so do you recommend keep topping my egg account up with my unspent money at the end of the month and then take the £1000 at the end of april (i.e will i get peanalised for taking the money out)

Back on topic about interest

I have read the FAQ on the egg website about interest on my account, i quote the following.....

When is my interest paid?
When you apply for your account you can choose to have your interest paid either:


annually on the anniversary of the date the account was opened; or

monthly on the day corresponding numerically to the date the account was opened.

In both cases if the interest payment date doesn't fall on a business day interest will be paid on the next business day.

Interest can be added to your account or transferred to another account of your choice (this account must be in your name or include your name if it is a joint account). If you ask us to transfer your interest to a nominated bank account, please allow up to an additional four business days for interest to be paid into that account.

Where interest is paid monthly the amount of interest received may vary depending on:


the number of days in the month;

the cleared balance in your account;

whether there has been an interest rate change.

Now when i signed up to the account there was no option of me to receive interest each month from my account. So when do i receive interest from my account?

Thanks for looking and trying to understand what im talking about ;D

Dean

Walletwatch

Somebody can correct me if I am wrong, but I don't think the 5.5% interest paying savings account pays you monthly interest. Interest is paid out once on completion of the first six months, and then annually.

Walletwatch

On your query, best is to allow the amount to stay in the high interest paying egg account till it is actually needed, so as to maximise the period for which it earns interest.

johnllew

There is no option for monthly interest with the Special Internet a/c paying 5.5%:

Egg Savings Account (Internet) introductory rate offer Special Conditions for Accounts opened from 21 October 2004.

3. Interest earned during the introductory period will be paid at the end of the six month introductory rate period. Interest will be paid thereafter on the anniversary of the Account being opened, and thereafter it will be paid annually.

blinko

on top of that unless its a fixed rate which the egg 5.5 isnt then you wont get charged for withdrawing money.

but yeah leave it in your egg account until its actually needed and then move it to wherever.

try the links on the left for more info on savings accounts etc

Pal

Phone egg up and ask whether you can get the interest paid monthly. I don't have the 5.5% account but I phoned the other day about my other accounts and they changed my interest payment frequency to monthly while I was on the phone.

MarkyMarkD

You can't.

So save your phone call 1p.