Egg Money Interest

msaquib

Hi,

My Egg money statment has been produced and I'm not sure if the estimated interest calculated is correct:-

My transactions:-

Opening Balance:- 30.71Cr
Pc World - £439.96 Db 11/06/06
PC World - £435.99 Cr 11/06/06
Pc World - £435.99 Db 11/06/06
PC world - £405.99 Db 28/06/06
Payment - £50.00 Cr 30/06/06
Pc World - 439.96 Cr 06/07/06
Asda - 24.92dv -
Statenent Balance: £350

Now its showing estimated interest for next month is £5.51. Is this interest is correct? I am on 6.9%apr.

Thanks
SM

daddy_bro

Did you have money outstanding from the previous month? The interest shown on one statement is only part of what you will have to pay. If you don't clear your balence immediately they continue charging interest the following month on the unpaid amount so that even if you clear it later there will still be interest showing in the next statement.
Basically if you don't clear your card you will have interest on more than one statement
I hope that helps as it is very confusing.

msaquib

No. I was in credit my £30. My this month balance is £350. On this amount they should only be charging me interest around £2.13 on 6.9% apr.

daddy_bro

Sometimes their estimated interest is way wrong. If you end up paying more than £2.013 then complain. You should clear it as quickly as possible though as you pay interest for every day it goes unpaid.

MPH80

No!

Remember that the interest free period ONLY applies IF you clear your debt by the required date - if you don't - then you'll be charged interest from the date of transaction - so:

£435 * 6.9% * 17/365 = £1.39
£840 * 6.9% * 2/365 = £0.37
£790 * 6.9% * 6/365 = £0.89
£374 * 6.9% * 31/365 (remember - interest is applied at the next statement) = £2.19

So - 1.39 + 2.19 + 0.37 + 0.89 = £4.84

Now I've only done that as a rough calculation because I don't know when that Asda transaction was, nor when your statement is due.

So their number looks right to me.

M.