Egg gets more interesting

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

ONLINE bank Egg is to give all credit card customers the chance of an annual interest-free balance transfer.

The move, aimed at rewarding loyal customers who remain with Egg for at least a year, goes against the trend among providers toward cutting benefits and increasing rates.

Once a year, on the anniversary of opening their account, cardholders will have access to 0% interest rate on new balance transfers, for a five-month period.

New customers will still benefit from an initial six month interest free period on balance transfers. After this it reverts to a standard rate of 13.9%.

Mark Nancarrow, chief operating officer of Egg, said: 'This move puts consumers firmly in control of their finances by allowing them to spring clean their external borrowings once a year interest free.'

The decision to extend interest-free borrowing for loyal customers was taken following a study of 10,000 customers with Egg cards. Of those surveyed, 76% said they would prefer annual 'birthday' balance transfers to receiving 0.5% cashback.

From 1 April the cashback rate on new purchases will fall from 0.5% to 0.1%. Although this may not be welcomed by big spenders, it should make it easier to keep borrowing levels at more manageable levels for people with debts.

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