The UK's first dedicated spending account is being offered by Egg. Monthly spending money is taken from their account and placed into an Egg Money account, which pays 4% gross interest on balances from £1 to £99,999, and 1% cash-back on purchases guaranteed until 2007.
The account has a variable borrowing rate of 6.9% APR. Customers can define how much income they need for outgoings, and account holders can keep track of spending online, or by weekly text updates. Credit limits are capped at twice monthly income.
Our view
This may prove useful to those who lose track and need help managing their accounts.