Egg Cash Isa 6.05%

[Bubble_Bobble]

I guess full details will appear on the Egg website by friday, so may be worth checking out before investing your 07/08 allowance.

Just wondering if anybody has any more info re terms/restrictions etc in the meantime.

[christhpc]

No idea but thanks for the tip. It's about time Egg started getting 'ahead of the curve'. Bit late for me though as my cash has been gradually moving it's way out of my Egg savings account and into Icesave.

[pod]

No idea but thanks for the tip. It's about time Egg started getting 'ahead of the curve'. Bit late for me though as my cash has been gradually moving it's way out of my Egg savings account and into Icesave.

What's Icesave?

[christhpc]

What's Icesave?

It's a web-based savings account offering a 5.70% interest rate. Tha bank is all FSA and banking code compliant and all that stuff and it's been discussed in length on the below thread by everyone's favourite aquatic double-act, Panda and Grey Shark:

http://www.housepricecrash.co.uk/forum/ind...mp;#entry526923

Icesave website here:

http://www.icesave.com

[christhpc]

Well the Egg cash ISA is up on Egg's website today. Well predicted, Scarlett.

Basic terms:

NO transfers in

Interest rate of 6.05% guaranteed to match Bank of England base rate until 5th April 2009

My opinion:

As the NS&I Direct ISA promises to track at least 0.55% above the BOE base rate, the next BOE rate rise will bring the NS&I ISA rate up from 5.80% to at least 6.05%. However, the Egg ISA will remain unchanged at 6.05% until the base rate exceeds 6.05% (BOE rate is currently 5.25%). However, by that time, the NS&I ISA will be at least 6.6%. Therefore the NS&I ISA has better scope for incorporating rate changes, so I won't be investing in Egg. And due to their failure to keep up with the market my Egg Savings account will be empty this time next month. Too bad!

I've got my finger on the trigger to use up my 2007-08 allowance on NS&I now!

[Bubble_Bobble]

My opinion:

As the NS&I Direct ISA promises to track at least 0.55% above the BOE base rate, the next BOE rate rise will bring the NS&I ISA rate up from 5.80% to at least 6.05%. However, the Egg ISA will remain unchanged at 6.05% until the base rate exceeds 6.05% (BOE rate is currently 5.25%). However, by that time, the NS&I ISA will be at least 6.6%. Therefore the NS&I ISA has better scope for incorporating rate changes, so I won't be investing in Egg. And due to their failure to keep up with the market my Egg Savings account will be empty this time next month. Too bad!

I've got my finger on the trigger to use up my 2007-08 allowance on NS&I now!

Good thinking! Think I will do the same for 07/08 allowance. Now just to decide where to stick the rest. Currently with Halifax @4.5% so a move definitely on the cards.