Egg card offers cashback on sales online – but be wary of the rate
Sunday 06 June 2010
Internet bank Egg is to launch a new credit card offering borrowers cashback on purchases made online at more than 1,500 UK retailers. The Egg Visa card gives users free membership of online cashback discount store Quidco, which in turn offers money off items bought from some of the UK's big-name retailers, including Marks & Spencer, Holland & Barrett, Dell and iTunes.
Cashback, which through Quidco can be as high as 10 per cent of the purchase price, is then credited to the account of the customer's choosing each month. In addition, purchases made with the card have added protection, such as a refund if items ordered online are faulty or do not arrive. "The idea is to give consumers complete peace of mind when ordering online. Good retailers will offer protection already but we are adding to that," says Harald Schneider, head of Egg cards. "We have always been pioneers online, and retail spending is growing massively over the internet. This card keys into the zeitgeist that consumers want a better deal and are looking online for the best possible price in these thriftier times."
Borrowers with debt to transfer will be cheered by the fact that the Egg card comes with a 0 per cent balance transfer charge until August 2011. However, those who run up balances on their card need to be aware that the interest rate is 17.9 per cent. "This is a quite high rate; the truth is that any benefits you get from the online cashback will soon be eaten up if you leave money on the card for any length of time. Best advice is use the cashback but always pay back the balance each month," says Andrew Hagger from comparison service Moneynet.co.uk.
What's more, the rate on the new card is actually 1 per cent higher than the standard Egg Visa that it replaces.
"This little nasty was hidden away," says Michelle Slade from financial information provider Moneyfacts. "It seems that the 'freebies' are being at least part funded by a rate increase. Even the balance transfer deal is not all it's cracked up to be as customers can find longer-term deals on the market at present."
Ms Slade also points out that the Egg card has just a 2 per cent minimum monthly repayment. "Most cards typically ask for 2.25 per cent. Now this may not seem like a big deal, but if you have a large balance and just make the minimum repayment, under the Egg card's structure you will pay much more," she says. For example, spend £5,000 on the new Egg card and make only the minimum repayment and you will repay a total of £10,124 and take a staggering 45 years before being debt free. "No one is going to do this, but it is a warning to clear balances quickly," adds Ms Slade.
Nevertheless, regular online shoppers may be tempted by the free access to the Quidco site offered – normally costing £5 – and the fact that cashback is paid monthly into their account. "There are no vouchers or loyalty-card points that need redeeming. Our card structure means consumers can enjoy not just great savings on their shopping from top retailers, but also cashback," Mr Schneider says.
"If you like online shopping and you use the retailers that are on the Quidco site, then cashback is attractive," adds Mr Hagger. "The key, though, is not to spread your cashback and loyalty too thinly, and to use lots of different cards and sites. Focus on cards which give you cashback at the retailers that you are likely to use the most."
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
Day In a Page
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony