Egg Money or similar

Bewhoyouwanttobe

We normally withdraw our monthly spending money each month, but i have spotted egg money, now from what I understand you can upload money into the account each month and you get cashback for money spent and earn interest on the money in the account, now this seems a great alternative and I maye earn a little money from the cashback.

Now is it how I understand and is this a good idea or is their better accounts around?

MPH80

Now is it how I understand and is this a good idea or is their better accounts around?

It is how you understand it.

But - if you're looking to earn money from it - you are better off using a different system - because it only pays 4% for the money on the account.

Basically - use it as a standard credit card -but instead of putting the money on the card - put it in a high rate savings account.

If you think about it this way - If you pre-load the account - you are paid 4% on each pound of money until you make a purchase.

If you don't pre-load the account - but use it as a proper credit card - you can put the money you would have otherwise pre-loaded into a savings account and earn up to 5.5% on the money until the credit card payment date - which could be up to 50 days after you made the purchase.

You still get the 1% cashback - but you get extra time earning interest and can earn more interest too.

M.

YorkshireBoy

If you spend all you pre-load each month, you're in effect only getting 2% AER (1.6% after basic rate tax) on the amount pre-loaded (assuming a linear spend profile over the month).

Pre-loading is a gimmick. As MPH80 has indicated, it's far better to operate the account as a regular credit card, settle in full each month via direct debit, and withdraw your spending money from another account using a debit card IMO.

You say you "normally withdraw our monthly spending money each month". You should be aware that you won't get 1% cashback on cash withdrawals - only purchase transactions.

Bewhoyouwanttobe

YorkshireBoy wrote:

If you spend all you pre-load each month, you're in effect only getting 2% AER (1.6% after basic rate tax) on the amount pre-loaded (assuming a linear spend profile over the month).

Pre-loading is a gimmick. As MPH80 has indicated, it's far better to operate the account as a regular credit card, settle in full each month via direct debit, and withdraw your spending money from another account using a debit card IMO.

You say you "normally withdraw our monthly spending money each month". You should be aware that you won't get 1% cashback on cash withdrawals - only purchase transactions.

Hi Thanks for reply's. Sorry what i meant is I normally withdraw our monthly spending money from my normal current account, this way the money can sit in egg account and I can use the card to make my normal purchases.

Thanks for info, i will have think about it