Egg ratchets up Internet savings rate war
21 March 2002 | 3024 views | 0
UK online bank Egg has extended the interest rate guarantee on its Internet-only savings account until the end of 2007, effective immediately.
Egg is promising to match BOE base rates on the account until the end of 2007. The move runs alongside a new introductory offer for new Internet Account customers paying 5% gross pa fixed for six months. The Internet Account standard variable rate is payable thereafter - this is currently 4% gross p.a./AER.
Patrick Muir, marketing director, Egg UK, comments: "Our research has indicated that nearly all 'best buy' savings accounts have a shelf life of between six and eight months, with no safety net after that period. We believe that savers need to start to look beyond the upfront 'bait and hook' rate and look carefully at what their provider is offering them on an ongoing basis"
Recent Mori/Egg research indicates that 25% of 16-24 year olds would be happy applying for or accessing a savings account online within just three years.
The move comes as Egg tops the latest Site Audience Survey into Unique Users of European financial services domains from online rating agency Nielsen, attracting in excess of one million unique users for the second month running in February. Egg's unique audience figure is now 75,634 users clear of its nearest competitor. It marks the first occasion that Egg has outscored its European counterparts in the rankings.