fund Egg Saver by Debit Card

Dagobert

When do funds credited by debit card start accruing interest and when do they become available for withdrawal?

YorkshireBoy

Dagobert wrote:

When do funds credited by debit card start accruing interest and when do they become available for withdrawal?

Egg Savings FAQ

When you pay in using a debit card, it's free and you start earning interest on the day the payment is credited to your account (if the payment is made before 2pm on a working day it will show on the next available working day). However, you won't be able to withdraw the funds for three to four working days after the money is credited to your account.

.............

Dagobert

YorkshireBoy, you seem to know answers to all questions!

it will show on the next available working day

By show, do they mean be credited? Or will the amount be credited on the day the payment is initiated but show up a day later?

How do you know when the funds are available anyway? I don't recall this being displayed.

YorkshireBoy

Dagobert wrote:

YorkshireBoy, you seem to know answers to all questions!

No, I just know where to find them!

By show, do they mean be credited? Or will the amount be credited on the day the payment is initiated but show up a day later?

My 'opinion' is that they'll start to earn interest from the day after you make the payment (if made before 2.00pm). Sadly, condition's 5.3 and 6.2 of the T&C's don't make it any clearer.

Milarky

IME debit card deposits are immediate - the value is shown, as is the current date. Egg might be saying it takes a day to go on the account but it doesn't.

On the other hand each current account varies in how it treats the 'authorised funds' used for the withdrawal (i.e. the 'available balance' drops immediately as Egg put a lock on the sum to be deposited but this won't be withdrawn for at least a day). Here's what I've found

Nationwide: leaves next working day, money in current account earns no interest prior to withdrawal...

cahoot: leaves next 'day' (not 'working day'), money in current account earns one day's interest...

Alliance and Leciester: leaves next working day (kind of) But if deposit to Egg is on a Saturday money will not be taken from current account for two days.

It is also possible to transfer money from Egg internet savings to an Egg account with card option instantly and withdraw the amount (up to £500) the same day (despite the on screen message that withdrawal against transfers are not possible until the next day) Thus it is possible to go into an A&L overdraft over the weekend using Egg, get two day's (plus any bank holiday) interest, transfer the amount and withdraw at an ATM on Monday (or next working day) and pay accross the counter at at PO - balancing the amount 'leaving' that morning. Although relatively pointless, this is a rare instance of using the bank's own 'clearing' cycle against it for a change.

So you can get extra day's interest in general when moving money into Egg via a debit card - but it depends on how your bank treats the withdrawal.

Dagobert

Milarky wrote:

IME debit card deposits are immediate - the value is shown, as is the current date.

This has been my experience, too, albeit with a smaller amount.

you won't be able to withdraw the funds for three to four working days

But can the funds be withdrawn once they're shown despite this note from the FAQ pages?

Milarky

Dagobert wrote:

But can the funds be withdrawn once they're shown despite this note from the FAQ pages?

That's my experience, again - having 'bounced' payments from Nationwide through Egg when [BACS] payments from Nationwide still took 3 days and Egg has always been two days... Not having funds 'in situ' does not seem to be a requirement. You could test this yourself if you had (say) only £1 in the account and tried a (non urgent) transfer to youself for any larger amount.

If I recall, they added this particular wording (re. savings) at the same time they made changes to the Egg card. You used to be able to make 'same day' payments - which was very handy for settling the account - but then they introduced a two working day delay (Incredible that anyone would slow down a system!) But as far as savings are concerned none of the changes seem to have applied in practice.

Dagobert

Their response to the question:

Uncleared funds will show as part of your account balance however you won't be able to withdraw any uncleared funds until after the clearing date. Deposits made by Debit Card are available for withdrawal 3-4 working days after the day they arrive in your account.

If you attempt to withdraw on any uncleared funds you'll receive a message saying that you don't have the funds available for withdrawal. If you require a clearing date for a specific deposit made you'll need to send a secure message requesting this information.

Your deposit will start to accrue interest on the day it's added to your account balance.

Please note, if the Debit card payment is made before 2pm the payment will be added to your balance on the same day and if the payment's made after 2pm it will be added to your balance after the 2nd working day. These time scales are a reflection on our clearing facility process.

Milarky

Dagobert wrote:

Your deposit will start to accrue interest on the day it's added to your account balance.

That's point to remember - you can always keep the amount you want to shift that day in the account and replace it instantly. The 2pm deadline is useful too.

(maybe I was wrong about the amount already sat in the account in the past when making 'bouncing' payments through - or else it was in the past, so and so before these changes came in?)

TTFN