The online bank Egg is to let customers transfer overdrafts and personal loans onto their Egg credit card.

The move is part of Egg's push to win business at the expense of the traditional High Street banks.

Egg cardholders will be able to transfer balances from overdrafts and loans they hold with other UK banks from 27 July.

The Egg card currently offers new customers 0% interest until 1 January 2003, while its standard APR is 13.9%.

Egg says customers will save money because even approved overdrafts at the "big four" High Street banks - Barclays, Lloyds, HSBC and Royal Bank of Scotland - have an average interest rate of 17%.

"Many consumers still believe that acquiring credit on overdraft is actually a low cost form of borrowing, in fact the reverse is still very much the case," said Egg's banking and insurance director Andy Deller.