Egg 1.9%

fatboyonadiet

A little advice here please people,

Egg have offered me 1.9% on a balance transfer until July 2005, is it worth me taking it out (have a credit limit of 6k) and sticking it into me savings account for the next 5 months or so and then sticking it all back in June?

How much would I make on in interest, given that my egg savings is 5.5% (5.15% from May).

Cheers and Stay Fat!

robnye

fatboyonadiet wrote:

A little advice here please people,

Egg have offered me 1.9% on a balance transfer until July 2005, is it worth me taking it out (have a credit limit of 6k) and sticking it into me savings account for the next 5 months or so and then sticking it all back in June?

How much would I make on in interest, given that my egg savings is 5.5% (5.15% from May).

Cheers and Stay Fat!

6000 * 5.5% for 4 months = £27.50 per month = £110
6000 * 5.15% for 1 month = £25.75 per month = £25.75

total over 5 months is approx £135.75

less tax if you are a tax payer, less cost (if egg charge) for balance transfer


edit:
sorry got figs wrong way round

alared

EGG sent me the same email offering 1.9% on balance transfer on any done by the 28th Feb.
Yet March is my anniversary month when I would get 0% for the same period.
Are they trying it on?

fatboyonadiet

Maybe, but my anniversary month isn't until August so won't really affect me

andyelcomb

I think robnye is being a bit optimistic.

Firstly, be careful about any balance transfer - it is vital that you don't use the card for any normal transactions until the balance transfer is repaid off as they will take any money paid in towards the BT first, which means you won't pay off the purchase, so will incur interest charged on it.

Secondly, I'm not sure Egg will transfer BT funds anywhere other than another credit card, so it might take a couple of weeks to actually get the cash bounced around and finally into your Egg savings account.

Thirdly, as you will have to pay off 2% each month, you can't really calculate the interest earned on the full £6000, unless of course you pay it out of other funds and not from the savings account.

My calcs, assuming normal tax paid on the savings account, and the 2% monthly payment coming from the savings account, and a full 28 days in Feb, gives a net £56.50 (ish).

Still worth doing, but if you can, I'd go for a new 0% card (there might still be 9 and 12 month ones out there) and use that solely for the BT and carry on getting the (meagre) 0.5% cashback on normal purchases from the Egg card.

Andy

ps - no idea what the rpoints ad below is about - nothing to do with me.

robnye

andyelcomb wrote:

I think robnye is being a bit optimistic.

yep thats me.... mr optimistic...... bit like i thought england would win on saturday......

anyway i was answering the original question which was how much interest would they make. obviously the final amount is reduced taking into account interest to be paid on the £6000, but he didnt ask that....

crumpetman

Firstly, 0.5% cashback? On egg (green)? I thought it was 0.1% now or not even anything apart from purchases from their affiliates via the web link.

Anyway, Egg are a super BT card provider and you can easily transfer the money to your bank account. I got the email from Egg earlier and already did a BT to my current account.

My 0% anniversary begins before this 1.9% offer expires so I will pay it all back and then do the BT again for 0%. I don't imagine that Egg will automatically change it to the lower rate for me.

A cracking offer still as my Egg card is just sitting there waiting for the anniversary offer. You might as well make use of this balance transfer offer as it's way below the rate you will earn on your savings and it doesn't get in the way of anything and no extra applications need to be made.

Woby_Tide

robnye wrote:

6000 * 5.5% for 4 months = £27.50 per month = £110
6000 * 5.15% for 1 month = £25.75 per month = £25.75

total over 5 months is approx £135.75

less tax if you are a tax payer, less cost (if egg charge) for balance transfer


edit:
sorry got figs wrong way round

aren't the figures wrong aswell as Egg are charging 1.9% interest on the balance transfer so the savings rates are 3.6% and 3.25% effectively(ignoring tax)?

andyelcomb

You're probably right about the 0.1% - I'd rather given up on the Egg cashback anyway. Pleased to hear about that they will tf to the current account - couldn't do it online the last time I tried so maybe they've changed for the better in that sense.
Yep, it is an ok offer - but my warning about being careful NOT to use the card with a BT on it for any purchases still stands!

Andy

robnye

Woby_Tide wrote:

aren't the figures wrong aswell as Egg are charging 1.9% interest on the balance transfer so the savings rates are 3.6% and 3.25% effectively(ignoring tax)?

no the figures are right, but only for interest gained......

Originally Posted by fatboyonadiet

How much would I make on in interest, given that my egg savings is 5.5% (5.15% from May).

answer from robnye

6000 * 5.5% for 4 months = £27.50 per month = £110
6000 * 5.15% for 1 month = £25.75 per month = £25.75

total over 5 months is approx £135.75

less tax if you are a tax payer, less cost (if egg charge) for balance transfer

:rolleyes:

quote from andy

Yep, it is an ok offer - but my warning about being careful NOT to use the card with a BT on it for any purchases still stands!

and dont use it as a mat for putting hot cups of coffee on or under the table leg to stop it wobbling or to open your front door when you cant find your yale lock key

fatboyonadiet

Thank you everybody! Just was looking for someone to crunch numbers, undertand the rest of it, will probably go ahead and do it as will make a bit of interest on my cash.

Cheers and stay fat!