Thank you - EGG

Jane.tweedynn

Not used my Egg card for a couple of years, got letter today asking me to 'Start Again from ZERO'. 0% on BT till Feb 2009.

I can only transfer 95% of limit so I will transfer £14,250 into my current account tomorrow.

Unless anyone can give me a reason why I shouldn't? Since I have not used Egg for a couple of years are there any nasty surprises waiting me?

YorkshireBoy

Jane.tweedynn wrote: »

...are there any nasty surprises waiting me?

A 3% BT fee and falling savings interest rates over the next few months?

pb3

YorkshireBoy wrote: »

A 3% BT fee and falling savings interest rates over the next few months?

AND.... The fact that Egg will itemize the balance transfer fee - £427.50 in your case - on your statement and charge you interest on this fee (at standard rate) throughout the life of your balance transfer!

As all payments are applied to paying off the zero percent BT first, there is no way you can avoid paying this additional interest on the BT fee. A weasel practice if you ask me.

All in all a triple whammy for the OP

daveboy

It's Egg that are saying thank you....the customers they do still have don't have a clue which is probably why they kept them!

CannyJock

pb3 wrote: »

AND.... The fact that Egg will itemize the balance transfer fee - £427.50 in your case - on your statement and charge you interest on this fee (at standard rate) throughout the life of your balance transfer!

Haven't come across any cards where the BT fee is charged at standard rates, it's always charged at the same rate as the BT, so 0% for the introductory period.

Anyone else able to confirm PB's statement about the BT fee being at standard rate?

YorkshireBoy

CannyJock wrote: »

Haven't come across any cards where the BT fee is charged at standard rates...

You don't have a LTSB card then?

CannyJock

YorkshireBoy wrote: »

You don't have a LTSB card then?

LTSB Amex Duo, had it for bout 2 years, use it for business expenses.

Who else does this?

YorkshireBoy

CannyJock wrote: »

Who else does this?

I seem to recall Egg, Barclaycard, and RBSG cards did, although I believe some of them have now ceased the activity (presumably because they couldn't point you to the specific clause in their T&C's). LTS, on the other hand, are very open about it and inform you in their balance transfer conditions.

With many cards also having a 0% on purchases duration, you may not see the interest being charged until 3/6 months down the line.

Jane.tweedynn

Its a 2.5% BT fee with 0% interest on purchases for 3 months.

I calculate it to return over £200 at a very conservative interest rate, I had also factored in 2% repayments and 16.9% on £356 for 9 months. Not quite the return as a few years ago but £200 is £200 to me and grossed up its about 3 days pay.

I was more concerned regarding the BT to overdraft and whether they'd somehow added very unfavourable small print.

YorkshireBoy

Jane.tweedynn wrote: »

Its a 2.5% BT fee with 0% interest on purchases for 3 months.

I calculate it to return over £200 at a very conservative interest rate, I had also factored in 2% repayments and 16.9% on £356 for 9 months.

This calculator says £210...and that's assuming an effective 11 months (which you may not get), a 6% interest rate, and basic rate tax payer...and does not take into account the interest on the BT fee (if they're still applying it).

Are you sure 6% is 'conservative'?. I'd say it may be a tad unrealistic in the current climate.

Still, it's money for nothing.

jonesMUFCforever

pb3 wrote: »

AND.... The fact that Egg will itemize the balance transfer fee - £427.50 in your case - on your statement and charge you interest on this fee (at standard rate) throughout the life of your balance transfer!

As all payments are applied to paying off the zero percent BT first, there is no way you can avoid paying this additional interest on the BT fee. A weasel practice if you ask me.

All in all a triple whammy for the OP

I specifically asked Egg about whether the balance transfer fee would incur interest and have a secure message stating in my case anyway that it will not.
Ask them first and keep the reply safe if they say the same thing.