Egg increases APR

Online bank Egg has announced it will increase the APR (annual percentage rate) on its Green and Blue credit cards from 14.9 to 15.9%. The rate on cash withdrawals will also rise from 17.9 to 20.9%. Some might question the timing of the decision, particularly given the announcement by the Bank of England to cut the base rate to 4.5.

For the past three years Egg cards have been popular with consumers due to market leading interest-free introductory offers and good rates of cashback. But the past year has seen Egg reduce its 0% offer to six months, cut cashback benefits and introduce a 2% balance transfer fee for new card customers.

However, an Egg spokesman pointed out that its most established Green Visa card has an anniversary 0% balance transfer offer and Egg's Blue Mastercard offers 0.5% cashback on all spending.