An internet bank has announced the launch of its new credit card offering one per cent cash-back on purchases up to a maximum of £200 a year.

The Egg Money World MasterCard launched the deal to meet the requirements of customers by providing them with a monthly fee of £1 with an 8.9 per cent interest on balance transfers and a 16.9 per cent rate on purchases.

Furthermore, customers can benefit from the protection against loss, damage or theft on purchases costing over £75 for a period of 90 days after the purchase day, while electrical items over £50 will be covered with an additional year's warranty.

Event tickets over £20 will also be covered in case of a cancellation.

Bert Pijls, the CEO of Egg said: "Egg money is for people who want to earn cash back from either everyday spending or expensive purchases and be protected at the same time.

It is also for customers who want certainty in their transfer rate so they can take more control of their finances while continuing to be rewarded for any new purchases."

However, the card has been criticised by the consumer rights group, Which?.

Martyn Saville, a credit card expert at the group said: "It's disappointing to see Egg charging its customers a fee just to hold the new card."

He stated that adding an additional fee on top of the APR will "punish low spenders disproportionately."