Egg slashes savings rates

Just when it looked as though Egg couldn’t get any more unpopular the online financial giant has announced that around half a million of its customers are to be affected by slashed interest rates on savings accounts, leaving many more people seething.

Egg recently announced that it was withdrawing the credit card facilities of around 161,000 customers, claiming that their credit profiles had fallen, when in fact many of the customers in question claimed that their credit was perfect.

Many were baffled as to why their credit card facilities had been withdrawn.

The financial giant has now stated that it will be cutting its savings interest rate by 0.5% following the Bank of England base rate cut earlier this month.

Although many financial institutions may be cutting the interest rate on savings accounts following the base rate cut, this is twice the level of the cut applied to the base rate.

Many customers may now start looking elsewhere for savings accounts that pay a better rate of interest, and one that has been dominating the best buy tables is the Kaupthing Edge savings account, which offers an interest rate of 6.5%, which will remain on hold despite the base rate cut. The Icelandic bank is a newcomer to the UK market.