Egg raises cash withdrawal fees

27/05/2009

Credit card company Egg has put in force a change to its cash withdrawal fees.

Customers using their cards at an ATM will now have to pay 66 per cent more for the privilege, following the rate hike.

Minimum fees will increase from £3 to £5 - or alternatively three per cent of the cash withdrawn, if this total is higher.

The move effectively discourages customers from taking out small amounts of cash with their card.

It could be seen as encouraging responsible spending from customers - as using credit cards at ATMs is generally a "last resort" when there is no money in the cardholder's current account.

Commenting on the rate hike recently, Louise Bond at financial website uSwitch.com said: "We strongly advise customers not to use this facility on any credit card unless they are really desperate for the cash.

"Interest is applied to credit card cash withdrawals from the day they are made and the APR is generally far higher than that applied to purchases."

Ms Bond added that she agreed with the "rationale" of the credit card firm in raising the charges.

The change comes into effect on May 28th, Credit Cards Web reports.

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