New Egg Account offer

Milarky

http://new.egg.com/visitor/0,,3_11095--View_162,00.html

It seems to be an ING-like offer: limited offer - fixed rate for 12 months 6.05% - can be operated just like their standard savings account (I think!) - open with £1, put more in as available - cant' use 'existing funds' (from another Egg account)

[FONT=Arial, Helvetica, sans-serif]The introductory rate is a limited offer for new accounts and for new money into Egg that is not already held in an existing Egg Savings Account (Internet) or Egg Savings Account (Investor)[/FONT]

I can't see an obvious 'catch' here as it is easy to open an extra account with £1. Any money held in other Egg accounts can simply be withdrawn out to another bank and redeposited for this rate surely? 'Limited' seems to apply only to the time this account will be offered.

Paul_Herring

Any money held in other Egg accounts can simply be withdrawn out to another bank and redeposited...

... in an account paying more than 6.05% AER?



(Ok - it might be quicker to open the savings account if you already have existing savings or you're lucky enough to still have a CC with them, than if you weren't with them.)

DeepSporran

Yes, this might be worth opening (with £1 only), particularly if you think that the bank rate will drop by 0.5% in the next 6 months or so.

In that scenario, the current best buy accounts which pay 6.5% for no-notice access may drop to 6.0%. So you could then switch across to the previously opened Egg account to get another 6 months of 6.05%. If the bank rate drops by more than 0.5%, then it will get progressively better for your Egg account - I accept that for only 0.05% extra interest it would hardly be worthwhile.

For the sake of £1 and a bit of admin, you've reserved a potentially useful account.

DeepSporran

DeepSporran wrote: »

For the sake of £1 and a bit of admin,

If you've already got an Egg CC or other account serviced online, it takes less than 5 minutes to set up (just done it).

Wonder how long this offer will be open. If you could be confident the offer would still be there, it would be worth delaying the opening date as much as possible, to keep that potentially useful 6.05% rate for a later period.

Dagobert

As I understand it, withdrawals can only be made via a nominated current account?

DeepSporran

Dagobert wrote: »

As I understand it, withdrawals can only be made via a nominated current account?

Not quite as restricted as that. It doesn't have to be a pre-nominated current account. You can specify the target account when you input the transfer details (any account that accepts BACS in).

~Chameleon~

Has anyone with an existing ES (standard rate) account tried to open another at the new 6.05% rate?

I was under the impression that there's nothing to stop existing acc holders opening it as long as they put in "new money" but having opened one this morning I can't find any evidence that I am actually getting the 6.05%. If I click on the "see historical rates" tab on the account it only mentions the standard 4.75% rate

Dagobert wrote: »

As I understand it, withdrawals can only be made via a nominated current account?

You can make withdrawals to any account which accepts BACS payments, including credit/store cards etc. Also, when paying money in via debit card the funds are cleared and attract interest immediately, so you effectively gain an extra 4 days interest


ETA: Finally managed to find some info on the site which seems to indicate there's no problem opening the new rate acc if you already hold standard rate acc ...

[FONT=Arial, Helvetica, sans-serif] How do I move money between my Egg Savings Accounts?
To move money between your Egg Savings Accounts:

[/FONT]

• [FONT=Arial, Helvetica, sans-serif][/FONT][FONT=Arial, Helvetica, sans-serif]
  
• Log into 'your accounts'.
• Select the 'Move money' tab.
• You'll then need to select the option to 'Make a one-off payment' and follow the on-screen instructions.
• The transfer will appear in your accounts immediately.[/FONT]

[FONT=Arial, Helvetica, sans-serif] The Egg Savings Account (Internet) introductory rate offer

Please be aware that transfers by internal transfer from an existing Egg Savings Account (Internet) or Egg Savings Account (Investor) are not permitted during the twelve months from the date the account is opened.[/FONT]

Milarky

~Chameleon~ wrote: »

Has anyone with an existing ES (standard rate) account tried to open another at the new 6.05% rate?

Yes.

I was under the impression that there's nothing to stop existing acc holders opening it as long as they put in "new money" but having opened one this morning I can't find any evidence that I am actually getting the 6.05%*. If I click on the "see historical rates" tab on the account it only mentions the standard 4.75% rate

The rate is 'historical' (since its current) That explains its absence for the list?

I would secure message them to get the confirmation you seek, but the position is pretty clear: Any internet savings account opened since 9th May (for a limited period) is at a fixed rate for 12 months from the date of opening...

*Actually it's there on the list - halfway down; "all account opened since 8th may with new money (etc)"

Milarky

Just got this reply (which contains a nice surprise)

The interest rate on you account number is 6.05% gross pa/AER fixed for 12 months. From tomorrow 5th June 2008 it will go up to 6.3% for all customers with the bonus account.

So it looks like I opened one too early!

~Chameleon~

What does it mean by "for all customers with the bonus account"?

noh

Now 6.3% as mentioned above

http://new.egg.com/visitor/0,,3_94368--View_2081,00.html

Nigel