Credit card withdrawal charges 'on the rise'

Many credit card companies have increased the charge for withdrawing cash, with Egg customers told to use them with caution.

Charges to withdraw cash with credit cards have increased, it is claimed, with Egg customers advised to use theirs with caution.

Findings from price comparison site uSwitch.com show the average rate applied to withdrawals has increased by 3.05% over the last two years.

Egg, however, has opted to increase its fee by £2 or 3%, depending on which is higher, taking effect on July 1st.

"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," says Louise Bond, personal finance manager at the website.

She says that users of the Egg card should use it with caution and only use it for withdrawals if they are desperate for the cash.

With uSwitch.com, consumers can find the best credit card for their needs.

Liberal Democrat Lord Oakeshott recently called on the government to stop banks taking advantage of their credit card customers.