Changes to Blue Egg Card

Bitstring , from the wonderful person LjLj said

Looks good for the next 30 days or whatever - Egg have a bad history of changing T&Cs (in a direction that doesn't favour the customer) with remarkable frequency. Personally I avoid them these days .. they're a PITA to deal with as well.

So it's bundled with a current account?

In message , LjLj writes

There is confusion in the small print. It says that cashback 'purchases' are limited to £200 per year. Which means a max £2 cashback. It then says that cashback of less than £5 wont be paid and will be lost, which means it is impossible to earn a cashback,. Elsewhere in the general terms and conditions it says the max cashback PAID is £200.

It also says that the credit interest is capitalised monthly and then compounds, in which case how can the credit interest rate AND the AER BOTH be 4% per annum?

Having said that, assuming the £200 is the max cashback (not the purchase amount) if you credit the card with £1000 per month and then spend it over the month with a bit more at the beginning so that you have (say) an average balance of about £350 ish you will get the equivalent investment return of about 30% on the average balance

Isn't this just a sneaky way of effectively charging you interest from the day a credit card transaction is applied to your account?

If you start off with a £100 positive balance on the account, they will pay you interest only on the balance that remains of that £100 each day after any card transactions are applied to your account. Meanwhile, Egg still have your full £100 in their pocket.

If you had kept that £100 is a separate savings account, you would have received interest on the full amount for the whole time until you withdrew the money to pay off your credit card bill when it finally became due.

Chris

Erm, so you hold a balance with them and when you use the card the money disappears from the balance straight away, call me thick but isn't that called a Debit Card? :)

I know technically you can spend more than your balance, though you can with a debit card, you just end up with an overdraft.