Following last week’s rate cut by the Bank of England, Egg has slashed the rate on its internet savings account by 0.5% - double the cut in the base rate. Until the end of last year Egg’s Internet Account came with a promise that its before-tax rate would at least match base rate – 5.25% from last week. But now that the guarantee has run out, the bank has taken a heavy hand to the account. Its loyal savers now earn 4% after savings tax (5% before tax) down from 4.4% (5.5%). Customers looking for a higher rate may want to switch to newcomer Kaupthing Edge which has said it will not be reducing the 6.50% it pays to online savers, despite the change to the base rate.
Posts Tagged ‘Egg’
Egg slashes savings rate by 0.5%
Wednesday, February 13th, 2008Egg crackdown on 160,000 customers
Monday, February 4th, 2008Egg annouced it was forced to make an unprecedented move to curb overspending after a review revealed 160,000 customers had a ‘higher than acceptable risk profile’. The cardholders received letters within days warning them their Egg credit cards will stop working in 35 days’ time. Those with a higher risk would typically mean people who spend over their credit limit or fail to make minimum repayments. However, Egg’s actions backfired when hundreds of those affected say they settle their debts every month and incur none of the bank charges which make money for Egg. But the lender defended the move, saying the ‘risk review’ was carried out after the banking giant Citigroup bought Egg last year and the decision was not prompted by the credit crunch. The Office of Fair Trading has yet to receive a complaint. But sources indicated an investigation would be launched within days if a sufficient response is received from customers.
